Contrary to recent trends of “quiet quitting”, where disengaged employees aim to do the bare minimum, it seems Canadians are working more than ever. The rise of remote work following the pandemic has transformed the workforce, leading many to embrace the gig economy. In 2022, around one million Canadians were juggling two or more jobs - think web developers getting into yoga instruction or accountants taking on wedding photography.
Reflecting on this shift, Kris Giddy (pictured above), managing partner at Mitch Insurance Kingston, noted: “With businesses shutting down and the work-from-home trend taking off, people had more time on their hands and needed to get creative with their downtime.”
This trend has continued beyond the pandemic as well, with over 2.5 million Canadians self-employed as of last year, making up 13.2% of the workforce. With side hustles contributing an additional $15,430 per year to Canadians’ incomes, it’s crucial for insurance brokers to capitalize on this booming market.
Traditional policies may not cover all the risks freelancers face, creating an opportunity for brokers to offer tailored protection that ensures clients can work with confidence and peace of mind.
Whether your client does consulting, web development, or social media management, it’s crucial to safeguard them against unforeseen issues that could disrupt their work. “If your client is hired for a specific project with a deadline and they miss it for any reason, they could face a lawsuit,” warned Giddy.
Since many freelancers work from home, brokers should be aware that standard home insurance policies often provide minimal coverage for business contents (computers, office equipment, furniture, inventory, and business supplies) and may even exclude them altogether.
A separate freelance insurance policy is essential to cover key risks including:
The expanding freelance insurance market now offers tailored coverages for a wide range of roles, from yoga instructors, to tutors and personal trainers.
To fully leverage these tailored options, Giddy advised brokers ask detailed questions about their clients’ businesses to understand their unique risk profiles, as freelancers often juggle multiple roles. For example, a client might be involved in web development and consulting, each requiring distinct coverages.
“When it comes to freelancing, clients might operate in various industries and take on multiple roles within those industries. It’s crucial to pinpoint their specific operations and exposures to provide a customized insurance solution,” confirmed Giddy.
“If your client has any business equipment or tools for their role, you need to ensure they are included in the policy as well,” he added.
Aside from gaining a firm understanding of a client’s business and risk profile, brokers can use the following tips to promote freelance coverage to relevant clients:
