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The Gig Economy — Side Businesses

Posted By Staff Reporter, Tuesday, October 9, 2018

The Hartford has done a new survey and found that 25% of us have a side business that is separate from our primary source of income. Putting a real number on that percentage adds up to something close to 57 million. The insurance possibilities — as are noted as we move forward — are endless.

And while it’s good for our business, the proper insurance is also very important to these individuals.

First some information. Most side business owners do the side business for income reasons. A very small percentage do what they do out of passion. Here are some statistics:

  49% of side business owners work 10 or fewer hours a week on the business

  61% are employed elsewhere as well

  51% say they have used part or all of their vacation or paid time off to work on the side business

Who owns side businesses?

  38% of Baby Boomers

  33% of Gen X

  26% of Millennials

The primary reasons for starting the side business?

                                                Overall           Millennials    Gen X      Baby Boomers

Financial                                 61%                  72%              62%                 56%

Make a change/lifestyle     16%                  18%              20%                 19%

Pursue a passion                   9%                    7%                8%                 12%

 

Of those surveyed by The Hartford:

  43% of side businesses generated less that $5,000 of income a year

  18% generated $5,000 to $10,000 a year

  18% generated $10,000 to $30,000 a year

Here’s where insurance comes into the picture. Only 12% of the some 57 million people running side businesses have purchased insurance. Most don’t even think they need it and cited these reasons why:

  44% — I don’t need business insurance

  18% — my business is too small to warrant buying insurance

  11% — my current homeowners or auto insurance covers me

As for the future of the business?

  27% say their business is somewhat or even highly likely to become a full time job or the primary source of income

  33% say that is highly unlikely

Another question is what is keeping that side business from becoming the primary source of income:

  48% — I don’t believe I can make a living at this business                    

  33% — I can’t afford to give up my income from my full-time job                     

  27% — I don’t want to give up the benefits from my full-time job                      

  23% — I like my full-time job and don’t want to give it up                       

  13% — I don’t have the time to dedicate to the business                      

The bottom-line for the independent insurance agents of the PIA Western Alliance is that these side businesses need insurance and are often under insured.

Source link: Claims Journal

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