on-demand insurance for the gig economy

Why On-Demand, Flexible Insurance Is Key To The Gig Economy

On-Demand Insurance Is Vital For Those Operating In The Gig Economy.

In March 2018, a report revealed that there are now over five million people operating in the gig economy across the UK, with the growth rate in London nearly doubling other regions. Many people operating in this industry are freelancers, often on individual contracts. Nearly one-fifth of the people operating in this industry are on zero-hour contracts. What does this mean?

These workers operate in a flexible business model to ease movement between companies, meaning they can provide an on-demand service.

The Issues Relating To Insurance

One of the potential issues with this type of setup is that contractors and workers operating in blue and white-collar positions are often required, or expected, to source their own individual insurance. Unfortunately, there is often a contrast between an employer’s mindset on insurance and that of the employees. This could mean contractors may not always be aware of just how necessary getting the right insurance coverage is.

As well as this many business owners in the gig economy see their model as different to the brick and mortar or online business models. In reality, they are more similar than most would care to admit. All models, including those operating in the gig economy need insurance to protect businesses from a financial perspective, and guarantee that major issues do not get the chance to develop.

Another issue is that the gig industry includes a range of different jobs, services, and setups. These come with countless risks for the contractor. As such, anyone representing a contractor needs to be aware of the many dangers and get insurance to cover them.

As well as this, gig economy companies are operating on the fly. If the company is being run from a property, they will often be on rolling monthly rental contracts. Coverage needs to vary from month to month to meet the demand and needs of each individual business.

on-demand insurance for the gig economy

On Demand Insurance Provides The Solution

With on-demand insurance, the issues of providing coverage for the gig economy can be effectively dealt with. On-demand insurance provides the same level of coverage as a brick and mortar or online company but with a twist.

This insurance provides coverage on short-term contracts and gigs. This is ideal for an industry where companies grow and shift at a rapid rate, using contractors, consultants and workers who may not be operating in the business even a week later. With on-demand insurance, the business can be protected while the company can remain flexible and get premiums that match the short-term setup that their industry is based around.

On-demand insurance is going to become more prevalent as the gig economy continues to boom. Standard insurance plans may be sidelined in this industry with usage-based models becoming the favoured approach. This is particularly true at present with the increased focus on gig companies to treat their contractors like employees and provide the same level of protection as a typical business.

It seems clear that on demand insurance is the key to the future of the gig economy. For more information or to get a quote click here.