The gig economy is basically booming and blooming in South Africa, with more individuals opting for freelance work, ride-sharing, and other flexible job opportunities. We reckon that this is because most people came out of the 2020/2021 COVID-19 pandemic having learnt that they crave more flexibility and multiple streams of income in order to live a happier and more financially stable lifestyle.
The thing is, while this shift offers freedom and flexibility (and stability), it also presents unique challenges, particularly when it comes to meeting your insurance needs. You see, unlike traditional employees, gig workers often lack access to employer-sponsored benefits. They also tend to use their homes and cars for dual purposes. What ends up happening is that home isn’t just home anymore, it’s also your base of operations, and your car isn’t a personal asset… It’s part of your business.
The problem is, your usual insurance might not cover you, putting you and your potential income at risk. Let’s talk about what being a gig worker, roaming consultant, or freelancer does for your insurance needs.
Understand your unique risks
People who have opted out of the traditional work lifestyle need to face up to the various risks that can impact their financial stability.
From our research, these include:
- Liability risks: You might provide services that could lead to liability claims, like a graphic designer who could be sued for for copyright infringement.
- Health risks: You probably don’t have employer-sponsored health insurance, leaving you vulnerable to high medical costs if you get ill or injured.
- Income instability: You might face fluctuating income, making it difficult to budget for insurance premiums and other expenses.
- Normal risks: We’re talking about theft and accidents that you’ll have to sort out, from your own pocket.
Essentially, the buck stops with you, and if you don’t have the resources to get back on your feet after an incident, like a lawsuit or theft of your business property, then you’ll be in serious trouble. That’s why we’re hitting you with all these insurance-y things to think about.
So… What insurance do you need
Starting with insurance for your health
Look, not every employer in South Africa offers employer-sponsored health cover, but it’s certainly not something you’ll get from your clients as a freelancer. That’s why you need to take it upon yourself to review the different options out there.
There are 2 main solutions… Medical aid and health insurance. When it comes to medical aid, there are many schemes to choose from, each offering a range of basic to comprehensive plans to cover hospitalisation, chronic illnesses, and day-to-day medical expenses. And then there’s health insurance. Usually more affordable, but unlike medical aid, health insurance typically pays out a predefined amount for hospitalisation or medical events.
Now let’s get into those liability risks that we mentioned
For this, you need liability insurance. This type of cover is crucial for freelancers and gig workers who provide services. What it does, is protect you against claims of negligence or damages resulting from your work. For instance, if a client claims that your work caused financial loss, liability insurance could cover legal fees and settlements.
Worried about your fluctuating income
This is a reasonable concern, especially for freelancers and gig workers. What you would need in this regard, is income protection insurance. This cover provides financial support if you’re unable to work due to illness or injury. This way, you can still meet your financial obligations while you recover. So, if your livelihood depends on your ability to work consistently, this is a must.
The usual risks
We’re talking specifically about theft, accidents, and incidents that could interrupt your business. These are general business risks that are usually covered by a good ol’ business insurance policy. Home contents insurance absolutely doesn’t cover your stock and equipment just because you store at home, and the last thing you want is to have your equipment stolen and face all that financial trouble on your own.
Not when the king could has your back, and your business.
Let us insure your business… It’s kind of our thing
As the gig economy continues to grow in South Africa, it’s not enough to just put on an extra lock and stash away some cash for a rainy day. Not when your livelihood is at stake. While we applaud any decisions to safeguard your means of earning an honest Rand, it’s vital that you protect yourself and your earning potential with the right insurance.
At King Price, we offer business insurance that can be customised to suit your line of work. You’re unique, and so’s your business… Every day you face unique challenges, risks and threats. We get you. So, we don’t see the point in charging you to cover things that aren’t relevant, that’s why we work with your broker to give you a neatly packaged policy that includes what’s important to you.
Our business insurance team is ready and able to tailor cover for your unique needs.
Click here or get in touch by calling us on 0860 21 00 00
Psst… This blog provides general info only, and doesn’t count as financial or product advice from King Price or our legal and compliance experts. Remember, all our premiums are risk-profile-dependent, and T’s and C’s apply. Our most up-to-date KPPD (policy wording) can always be found here.
Our website T’s and C’s can be found here.
