Side Hustles

Many people want to supplement their income with a side business, whether that's selling handmade goods on Facebook marketplace, selling from a weekly market stall, or doing cash-in-hand trade, construction, or gardening work on weekends. And that's great!

Small business is the lifeblood of the Australian economy. But considering and mitigating risks usually falls low on the totem pole of priority.

So what are the risks?

Really, the risks are the same as a full-time business, and the process for determining and mitigating them is the same too.

Homes are for living, not for business

The big one that trips people up is that your typical home & contents insurer is only insuring your risk as a homeowner and occupier, not as a business operator. This means that if the insurer (reasonably) feels that your undisclosed business activities have increased the home & contents risk beyond their tolerances, you will not be insured for any loss or damage.

I didn't tell the insurer about my hustle!

People usually find themselves in this situation when it's already a problem - i.e., they've lodged a claim and the insurer is making noises about failure to reasonably avoid a misrepresentation.

You need experienced and pragmatic advice

Luckily here in Australia we have some of the most consumer friendly insurance legislation in the world. And it's not a recent innovation, we've had the Insurance Contracts Act 1984 in place for literally 40 years.

Section 54 of the ICA is a lifesaver in these circumstances. But even if s54 isn't applicable to the circumstance in play, there are other avenues to take. That's why you need an experienced adviser before you dig the hole any deeper! Arguments of fairness or everyone does it will get short shrift, you need someone on your side to help resolve the issue.

Avoiding the issue is better

But it's far better to avoid the problem in the first place! Even if you're convinced that your side business is completely risk-free and that there are no issues to consider, it's worth taking ten minutes to have a candid chat to someone about your situation from an alternate perspective. That's part of my service.

Using decades of experience helping micro, small, and large businesses understand risks and mitigation strategies, I offer obligation-free risk consulting services to put your mind at ease.