What is a Business Owners Policy (BOP) for the Gig Economy?

What is GigBOP?

GigBOP is a Business Owners Policy (BOP) designed to meet the needs of main street, small, home based or service-based businesses and gig workers.  With over 59 million Americans classified as freelance workers, this segment is one of the fastest growing in the US economy and with the ever-changing landscape, the demand for Gig workers will continue to increase.  Increasingly, the people and businesses that contract with small businesses ask them to provide proof that they carry insurance.  And, in many cases, these small businesses do not carry adequate insurance, if they carry it at all.

By having a product that focuses on this unique segment of the market, it is possible to provide more affordable and relevant options by focusing on the unique needs of smaller businesses.  And, for the owners of small businesses, including gig economy risks, carrying the right insurance protects your business and your assets.

What do you mean by Gig Workers?

Number of Americans Who FreelanceGig workers are  temporary, with flexible hours  or freelance based workers. They are very popular due to the flexibility of online businesses. Gig work is increasingly popular as a side job, or a side hustle for people with more traditional full-time jobs to create an additional source of income. According to Upwork’s seventh annual Freelance Forward study, 59 million Americans worked as freelance workers in the past 12 months, representing 36% of the overall U.S. workforce.

Examples of gig workers include contractors, online jewelry sellers, freelancers, business services and project-based workers.

 

If I don’t own the building that the business or gig worker operates out of, do I still need insurance?

In a word, YES.  Operating any business without insurance exposes your revenue and all your assets to potential liabilities that arise from your physical premises and from your activity.

What companies are eligible for GigBOP?

SynchronoSure offers 80+ classes of eligible businesses including Artisan Manufacturing, Online Retail Sales, Services such as freelance Artists, Catering, Clothing Alterations, Editorial Services, Job Recruiter, Pet Grooming, Yoga Instructor.

What is your definition of a Small Business?

At SynchronoSure, we define small business as ranging from a single employee/owner to up to 25 employees in total, that have less than $5 million in sales annually. Over 80% of the businesses in this segment are run out of the business owner’s home or out of leased commercial space including leased co-working and office suites.

Will my homeowners’ insurance cover me?

This is the largest misunderstanding of homeowners’ insurance, which leaves businesses open to large gaps in coverage. Emerging businesses, home based, or commercial tenants are now the new Main Street America businesses and existing coverage within your HO may not be effective. Homeowners policies typically have zero coverage for business operations run outside of the home, often having very strict liability exclusions. In fact, failure to disclose a business being run out of a home can void your policy entirely. Property related to businesses are also either completely excluded or have a low sublimit for incidental property.

Why is property coverage limited to Business Personal Property?

Research has shown that most smaller businesses and gig businesses do not own a building for business purposes. In fact, most tend to operate out of the owners’ house due to limited expenses and the nature of the work.

Business Income tends to be a line of coverage focused on businesses with more traditional and predictable revenue. New and small businesses as well as gig businesses have less consistent revenue that would make business income coverage less than ideal economically.  Why pay for things you don’t need.

What about people who operate mostly out of trade shows or festivals or temporary space at a mall or market?

SynchronoSure caters to these types of businesses. Unlike more traditional BOP or Commercial Package polices, our GigBOP product does not carry a premises limitation for its Business Personal Property, and the liability coverage included in the GigBOP follows you, wherever you are. In addition, when the insured purchases the Retail or Service Enhancement Endorsement (depending on the type of business), they will have blanket additional insured coverage for the hosts of these events.

For inquiries, please contact:

Andrew Hill
ahill@synchronogroup.com
Office (984) 297-8952
Cell (215) 534-3261

Mary Hyland
mhyland@synchronogroup.com
Office (215) 600-3549

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