As temperatures rise and project season kicks off, many Ontarians turn to side hustles – taking on part-time gigs, launching solo services, or testing the waters with a seasonal business idea. Whether it’s landscaping, mobile car detailing, photography, or freelance design work, these entrepreneurial ventures offer flexibility and extra income. But while your side hustle might start small, it could carry big risks if you’re not properly insured.
So, what does insurance look like when you’re doing business on the side?
What Counts as a “Business” to Insurers?
It might surprise you how quickly a hobby or part-time gig can be considered a business in the eyes of your insurer. Here are a few signs your side hustle is more than just a pastime:
- You earn regular income from it
- You advertise your services
- You travel to clients or have them come to you
- You store tools, stock or equipment at home or on the road
- You hire subcontractors or casual help
If any of these apply, your personal insurance (like your home, auto, or renters policy) likely won’t cover losses related to your business activities. That’s where dedicated contractor or small business insurance comes in.
Why Business Insurance Matters – Even For Small Gigs
1. Liability Protection:
If a customer is injured on-site, or if your services cause property damage, you could be held legally responsible. Liability insurance covers legal fees, settlements, and medical costs -expenses that could otherwise derail your summer earnings.
2. Equipment Coverage:
Many side hustles rely on tools or equipment. If you’re running a lawn care service, pressure washing driveways, or using a camera for paid shoots, business coverage can help replace stolen or damaged gear.
3. Vehicle Use:
Using your personal vehicle for work—delivering items, hauling equipment, or traveling to job sites—can blur the lines. A standard auto policy typically excludes business use, which could put you at risk if there’s an accident.
4. Client and Contract Requirements:
Some customers or job platforms require proof of insurance before you can take on a project. Having a policy in place makes you look more professional and opens the door to more opportunities.
What Type of Coverage Might You Need?
Depending on the nature and size of your side hustle, a broker might recommend one or more of the following:
- Commercial General Liability (CGL): For third-party injuries or property damage
- Contractor’s Package Policy: For tradespeople and service-based businesses
- Commercial Auto Coverage: If you’re using your vehicle for business purposes
- Tools & Equipment Insurance: Protection for gear stored at home, in your vehicle, or on the go
- Business Property Coverage: If you store stock or supplies at home
How to Get Started with Side Hustle Insurance
The best way to know what you need? Talk to a licensed broker who understands your business goals and the local market. They’ll help evaluate your risks and connect you with a policy that balances protection with affordability.
And remember: insurance isn’t just about covering worst-case scenarios. It’s also about giving your next venture the confidence and credibility it needs to grow.
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Thinking of starting or expanding your side hustle this season?
Let us help protect what you’re building. Contact us today to explore affordable, tailored insurance options for your part-time business or contractor work.
