The way work gets done in the United States – or, more specifically, how Americans engage with work – looks very different than it did just a short time ago. Freelancing, independent contracting and gig work have become as much a part of the employment landscape in recent years as full-time and part-time work. According to McKinsey & Company, an estimated 58 million Americans were participating in the gig economy as of last year. That figure amounts to 36 percent of employed survey respondents – a prodigious leap from 26 percent in 2016.
And that trend isn’t likely to level off soon. Statista, whose current estimate of U.S. gig workers is similar to that of McKinsey’s, predicts that more than half of the American workforce – or 86.5 million people – will be participating in the gig economy by 2027. On top of that, the liability insurance market size is expected to continue climbing from $251.7 billion in 2021 to $418.8 billion by 2030, via Acumen Research and Consulting.
Why Are So Many Gig Workers Uninsured or Underinsured?
Most gig employers don’t offer benefits, and as a result many people working within the gig economy simply go without. Roughly 1 in 4 U.S. gig workers don’t have health insurance, while nearly half struggle to find access to it, according to BenefitsPRO. This is a significant issue for individual workers, public health systems and, potentially, the future of the gig economy. But those figures pale in comparison to the number of gig workers who lack business insurance to cover their work in case of theft, property damage or an accident for which they may be held liable, among other events.
At issue is the fact that most gig workers aren’t aware of the need for additional business insurance, often because they’re under the assumption that personal insurance has them covered. But whereas a full-time employer is typically insured to replace an employee’s stolen laptop or a damaged delivery automobile, gig workers are on the hook for replacing or repairing their own tools of the trade. And if that worker is unable to cover their losses or liability, they could be blocked from earnings potential or face stiff financial penalties.
How GigBOP® Keeps Gig Workers Covered
SynchronoSure offers freelancers, independent contractors and side hustlers a viable business coverage option. It’s called GigBOP®, and it provides gig workers with the peace of mind to pursue their business without worry. GigBOP® is package insurance – including business personal property, business liability, and miscellaneous professional liability – that is customizable to a gig worker’s industry and available in all 50 states.
For insurance producers, GigBOP® is an opportunity to reach and service a vast and untapped population of un- and underinsured gig workers – one that is growing every day. Teaming with SynchronoSure allows producers to deliver a quote in minutes, earn monthly commissions on collected premiums and bridge the coverage gap for gig workers through access to GigBOP® package insurance. Register as a SynchronoSure producer to get started today.