Getting a side hustle is an awesome way to make a bit of extra cash. They can offer a lot of flexibility and, for some people, might even turn into a full-time gig. But what if you get hurt at your side hustle? You might not have all the comforts that you get with your 9-5.
There are all kinds of side hustles you can get! From driving for companies like Uber and Skip the Dishes, to using your handy(wo)man skills on a paid gig or becoming a tutor. What we’re talking about here are independent side jobs that you do on top of your j.o.b. – no boss or employee benefits and you don’t get a T-4.
As an employee, you’re automatically enrolled in WorkSafe BC (WCB) and Employment Insurance (E.I.).
If you’re hurt at your job and can’t work because of it, WCB can help and you’ll still have a paycheck. When you work for yourself, those benefits change.
You’ll still have your WCB coverage, but it’s only in effect while you’re at work as an employee. Once you’re on your own time – whether you’re using that time for a side gig or not – you’re not covered by WorkSafe.
For example, maybe you build decks for a living and your neighbor asks you to build a deck for them. But they want you to do it, not the company you work for. In that case, WCB wouldn’t cover you if you got hurt working at your neighbor’s house.
Employment Insurance (E.I.) on the other hand, might still help you.
As long as you’re an employee for a company, E.I. will still be an option whether you’re hurt on or off the job. They can help if you’re hurt, sick, or unemployed. However, they pay 55% of your income (as declared on your paystubs or T4 earnings) up to a maximum of $573/week and only for 15 weeks. If you decide to quit the company you were working for to do this side gig, E.I. goes away.
For any side job you get that requires driving – deliveries, picking up supplies, meeting clients – you need to make sure your car is insured for business use. If you work with clients or could be liable in any business situation, you also need Liability Insurance.
Those aren’t the kind of insurance we work with at Iron & Pearl Financial, so we’ll leave you with DO NOT skip looking into this.
As a Canadian who pays into Canada Pension Plan (CPP), their disability program may be a last resort.
If you’re hurt at your side hustle, it’s best to not qualify for this. You must be permanently disabled and likely to die from your conditions.
What’s your Plan B if you get hurt and don’t have coverage?
Maybe you could sell something or ask family for help. Remember to consider how long it’ll take to sell your assets.
To make sure that you’re covered at all times, get disability insurance.
It’s the best way to have the peace of mind that you’re covered all the time.
Curious about how disability insurance works and what your options are? Book a free quick call with us. We’ll answer your questions and point you in the right direction. We’re focused on giving you the tools and education to build financial security in your life.
Remember, you’re in control of your financial future.
It takes time and effort to put in plans like this, but it’s worth it to know your family will be taken care of.