We can all easily understand the importance of selecting the right tool for the job. A data analyst has no use for a cement mixer, just as a landscaper won’t get much done with a slide rule. The same goes for people who buy insurance – and for the brokers who sell them coverage policies.
The vast majority of larger businesses are insured in the event of theft, damage or an accident, and that coverage typically extends to their employees. But in the case of small businesses, freelancers and independent contractors, the individual is responsible for coverage related to their work. And given the continued growth of the gig economy, as well as the fact that personal insurance often fails to appropriately cover business liabilities, more and more gig workers are learning the hard way that the coverage tools they’re most familiar with aren’t enough to get the job done.
Moreover, business insurance isn’t a one-size-fits-all solution. Just as large companies have unique coverage needs based on the nature of their industry, the number of workers employed and any number of other specialized factors, gig workers are best served by policy insurance precisely tailored to their business.
What Are the Risks for Gig Workers?
Gig work isn’t exactly a new phenomenon, but its pervasiveness in the global economy is a fairly recent development. Not surprisingly, this has created something of a blind spot for freelancers, contractors and small-business owners. Organizations that employ or engage with gig workers aren’t obligated to inform those workers of their business risks or liability, and many gig workers are unaware that their business possessions and activities likely aren’t covered by their personal insurance policies.
Complicating the issue are the vast differences in coverage needs within the gig economy. For instance, an artisan jeweler with a brick-and-mortar retail space that employs a dozen workers faces dramatically different business risks than, say, a lone-wolf long-haul trucker. A freelance photographer or DJ may have tens of thousands of dollars in business-related equipment and, as a requirement of their work, regularly travel by automobile to assignments. A freelance editor, on the other hand, can operate an entire business from a basic laptop in their own home. Because the costs associated with covering property and liability risks across industries can vary greatly, a broker with the tools to accurately underwrite disparate businesses has tremendous value to gig workers.
How GigBOP® Helps Place Gig Workers With the Right Policy
Certain aspects of the underwriting process have the potential to benefit all, but hold special significance for gig workers – chiefly, speed and accuracy. Faster underwriting times allow gig workers to settle their coverage and get to work quicker, while accurate risk assessment ensures that they aren’t overcharged or underinsured.
SynchronoSure’s GigBOP® is package insurance designed for gig workers and driven by artificial intelligence that optimizes the speed and accuracy of underwriting. Additionally, SynchronoSure differentiates the 183 class codes into segments (artisan manufacturing, direct retail and entertainment services, for example), aligning policies to fit with your business. Become a SynchronoSure producer today to begin connecting gig workers with the business personal property, business liability, and miscellaneous professional liability insurance options that suit them best.
Visit our Producer Page to get started.