There are, unfortunately, many areas of risk for those who work as independent contractors or within the gig economy. One of the biggest being liability. Liability, in terms of being a gig worker, refers to the legal responsibility that you may have for any harm or damage that you cause (intentionally or unintentionally) while working on a project or providing services to a client. Being employed by a company typically offers some level of protection against retaliation from a client or the legal troubles that may follow from an error or mistake, but gig workers are more often than not left out of those benefits.

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What Are The Risks?

As independent contractors, gig workers are often considered personally responsible for any liabilities or damages that occur as a result of their work. This means that if a gig worker causes harm or damage to a client, third party, or their property, they may be held legally responsible for any resulting costs or damages. If you don't have the proper insurance in place, this can result in losing personal assets, like your home or car, in order to settle legal fees or pay for damages. For example, if a gig worker providing handyman services accidentally damages a client's property while on the job, they may be liable for the cost of repairs or replacement.

To manage liability as a gig worker, it's important to take steps to minimize risks and protect oneself. This may include purchasing liability insurance, carefully reviewing contracts and agreements, ensuring that proper safety measures are in place, and communicating clearly with clients about expectations and limitations.

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How To Protect Yourself & Your Business

An LLC

There are a few ways to shield yourself from potential liability issues, one of which is registering your business as an LLC. An LLC, or Limited Liability Company, offers liability protection to businesses by separating the personal assets of the LLC's owners (or members) from the business assets and liabilities. This means that if the LLC incurs debts or legal liabilities, the members' personal assets are usually protected, and they cannot be held personally liable.

This separation of personal and business assets is often referred to as the "corporate veil" and is a key aspect of liability protections for LLCs. However, it's important to note that this protection is not absolute. If it is found that your business is engaging in illegal activities, such as fraud, members may be held personally liable.

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Legal Protection & Insurance

Another way to protect yourself and your business is to purchase some type of legal protection plan or insurance. You can purchase a general liability insurance policy that can help you financially in the event of a customer injury or property damage. You can also purchase a legal protection plan that can help cover the cost of legal services, while making it easier for you to create personal legal documents like trusts, power of attorney, and healthcare proxies. These monthly plans, while hopefully you never need them, are incredibly important to possess as a gig worker and should be looked into sooner rather than later.

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How Does Gig Worker Solutions Help?

In addition to several other plans and benefits, Gig Worker Solutions offers a legal protection plan via MetLife to those who need it. MetLife's plan makes it easy for you to access qualified and experienced attorneys with zero co-pays or deductibles at an affordable monthly rate. This plan can help you review contracts and agreements, receive legal advice and guidance, draft up your own will, directives, and other estate planning documents, and support with real estate transactions.

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