Don’t let that side hustle cost you!

The side hustle. The portfolio career. Passive income. The gig. The nice little earner. Once known as the ‘second job’.

Insuring the side hustle - courier - A-Plan Insurance

The pandemic has changed many things, and that includes the number of jobs people are willing to have co-exist! While some double down with two 9 – 5’s, others are using their days to double up on their van or vehicle for deliveries and taxis, while others are renting out rooms for races or using a space for a treatment room, while using another for their home office.

It’s a great way to raise additional income or explore previously untapped passions and even new careers. But are you covered for that second income?

How many people have a side hustle in the UK?

This is a tricky one to answer as not all side hustles are registered as self-employed. Research by the Office of National Statistics suggests that pre-pandemic (2019) there were 1.1 million people either employed in two jobs, or in one job and self-employed in another. The impact of the pandemic, from the furlough scheme to the changes in the way we work, has pushed that figure up to an estimated 5 million! According to Henley Business School, 25% of UK adults are now side hustlers!

We spoke to two of our branch managers about the increasing number of individuals working in this way, who may not have considered insurance for their scenario.

Using your car or van for a second income

If you are using your regular car, or even work van, to moonlight as a courier on the side, it is essential to have the right insurance.

Insuring the second job - A-Plan Insurance

We spoke to David Parker, Branch Manager of A-Plan Tooting. David is an expert in non-standard car and vehicle insurance and has seen an increase in enquiries around the ‘second use’ of vehicles.

“Obtaining the right insurance is entirely feasible. However, the issues arise when a driver diverts from their main occupation to offer deliveries on the side, without speaking to their insurer first.

“To use my self-employed local delivery lady as one example, she does not have ‘commercial travelling’ noted on her car insurance policy, only ‘class one’, which is the required use for her occupation as she delivers goods in a car. That’s absolutely fine. Where it becomes a no-no is when a builder who owns a van decides to do some extra removals or deliveries on the side.

“The truth is that many insurers will pull away from dual occupations. The vehicle is on the road more and the risk is far greater. The insurer would rate it based on the highest risk factor and not the percentage of use per occupation, i.e. if a man-with-a-van did 5% of his work as a courier and 95% as a builder, the insurer would require a 100% courier rating.

Using your van for a second income - A-Plan Insurance

“With so many options available to those seeking a second income these days, from Hermes deliveries to Just Eat, Uber or even Deliveroo by bicycle, it is critical to understand what you are insured for, and who is paying for it. Don’t assume that your standard car, van or even bicycle insurance will cover it all. And just because Hermes covers you for delivery, doesn’t mean that you are covered to deliver other items in that same vehicle.

Interested in finding out more? Contact David Parker directly or find your local A-Plan branch.

Using your home for a second income

Chris Biggs, A-Plan Farnham’s Branch Manager is also a specialist in non-standard home insurance.

“Many people aren’t aware of the restrictions of their standard home insurance policy when it comes to using their home for other purposes. While the standard ‘working-from-home’ is now seen as the norm, and acceptable within the terms of home insurance, what we are seeing is a number of individuals making the most of working from home and running additional businesses on the side.

Renting a room for second income? - A-Plan Insurance

“While there is nothing wrong with doing that, and insurances are available, it’s ensuring you know that to begin with, and understand the parameters of what the insurance is based on, such as average number of visitors to the property in one week and so on.

“Some surprising examples that people may not have insurance for include:

  • Letting out your home/flat/room privately during the races, for example, or listing a spare room on Airbnb to make some money.
  • Using a room in your home for beauty treatments in the evening, for example.
  • We are also finding that with people working from home they are also needing an increased level of cover for their business equipment and/or stock levels which are not covered as standard.

“When we talk to our clients, it’s important to establish whether they are working from home, or do they have the business registered there? Do they advertise the address? Do they have visitors to the home address for any of these activities? We guide our clients through the process leaving them reassured, and correctly insured.

“I would advise anyone running, or considering running, any of the above schemes to speak to us in Farnham and we can simplify and fully explain how your bespoke situation would be covered.”

Whether using your vehicle or home for that second income, one thing is certain, you will need to speak to a specialist broker. A-Plan has a specialist panel who tailor policies to meet client needs, and that involves us negotiating directly with regards to the terms and endorsements. Speaking to a specialist about your side hustle is important if you want to grow and protect the assets you have worked so hard to purchase or create!

Get in touch with David, Chris, or find your local branch, they will be happy to help you understand exactly what you need.