You’ve probably heard the terms “side hustle” or “side gigs” being bandied around, but what it really is is a “side business”, a business that is not the owner’s primary source of income. And 25 percent of Americans, roughly 57 million people, have a side business, according to a new survey from the insurance company The Hartford.
The report also found that the majority of side business owners surveyed have full-time jobs and started the business to augment their finances, rather than the small percent of those who are pursuing a passion. About half spend about 10 hours or less a week on their business and 61 percent are employed full time elsewhere. Fifty-one percent with a full-time employment have used at least some of their paid time off to work on their side business.
Just over 40 percent of those surveyed generate less than $5,000 of income from their side business each year, but 18 percent generate between $5,000 to $10,000, and another 18 percent who generate $10,000 to $30,000.
Who is most likely to own a side business? Baby Boomers beat out Gen Xers by just five percent: 38 and 33 percent, respectively. Far fewer Millennials have a side business, at just 26 percent.
Strangely enough, only 12 percent of those surveyed have purchased business insurance, and most of the others surveyed don’t think they need it. The top three reasons given for why they feel they don’t need insurance included:
- I don’t need business insurance (44 percent)
- My business is too small to warrant insurance (18 percent)
- I am protected by my current home or auto insurance (11 percent)
Almost half of those surveyed reported that they didn’t believe they could make a living doing their side business full time, and 27 percent can’t afford to give up the benefits from their full-time job. There’s even 23 percent who said that they like their full-time job too much to give up!
Having proper coverage, even for your side hustle, is important. If you’re not sure what it could cost, just give us a call at BMR Insurance: 714-838-1911. Or click here to email us. Also, follow us on LinkedIn for the latest of our advice, tips, and insurance news.