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Income protection for gig workers

Gig workers, such as delivery riders, app-based drivers and freelancers, usually have no employer sick pay. Income protection can replace part of your earnings if illness or injury stops you working. Insurers base the benefit on your taxable profits, often using tax returns, so irregular income needs careful evidence. Short-term policies can suit budgets that vary month to month.

No work, no pay

Gig work gives you control over when you work. It also means that if you are injured or ill, the money stops. There is no sick pay from the app, and statutory support may be limited or unavailable depending on your status.

If you rely on gig work for most of your income, a few weeks off can put rent and bills at risk.

Recovery can take longer than you expect. A broken wrist or bad back might keep a rider off the road for weeks, and a serious illness for months. Savings rarely stretch that far.

How insurers work out your income

Insurers usually look at your taxable profit after expenses, not the total your apps paid you. They often ask for one or more tax returns. If your income varies, they may average over a period.

Keep records of every platform you work through. If you combine gig work with a part-time job, insurers can usually count both.

If your earnings have grown recently, insurers may still use an average of earlier years. That can mean a smaller benefit than your current income suggests. Review cover once your tax returns catch up.

Your job and your risk

Delivery riders on bikes and drivers who spend long hours on the road face different risks from a freelance designer at a desk. Insurers group jobs into classes, which affects price and the definition of incapacity.

Be precise when describing your work. If you do several types of gig, tell the insurer about all of them.

Hobbies and extra work count too. If you drive for an app at weekends and work a desk job in the week, the insurer may assess the riskier job. Tell them about both.

Choosing a policy that fits a variable income

Short-term income protection pays for one, two or five years per claim and costs less than long-term cover. For many gig workers that is a practical starting point. Long-term cover pays until you recover or retire.

Pick a deferred period you can manage. If you have little savings, a short one helps, though it costs more.

Waiver of premium can be useful too. It covers your premiums while you are claiming, so the policy stays in force without extra cost when money is tight.

  • Short-term cover for tighter budgets
  • Long-term cover for maximum protection
  • Short deferred period if you have little savings
  • Review the benefit as your income grows

How Hi Tomorrow helps gig workers

We look at your work, your income records and your budget, then compare insurers on our panel that understand self-employed and gig earnings.

We explain how each insurer would assess your income and what evidence to gather before you apply.

If income protection is not affordable yet, we can look at a short-term policy with a modest benefit, so you have something in place while your income grows.

Questions people ask us

Can gig workers get income protection?

Yes. Gig workers are usually treated like other self-employed applicants. Insurers base the benefit on your taxable profits and may ask for tax returns. Some offer cover with limited trading history, though the benefit may be smaller.

How do insurers calculate gig income?

Usually from your taxable profit after expenses, as shown on your tax return. If your income varies, they may average it over a year or more. Keep clear records from every platform you work for. Some insurers also accept accounts prepared by an accountant as evidence of income, which helps if your business is newer.

Is income protection worth it for delivery drivers?

If you rely on delivery work and have no sick pay, it can be valuable. Road time brings a higher risk of injury than many jobs, which may affect the price. A short-term policy can keep costs down while still protecting your income. Ask how the insurer would define your occupation, because the definition of incapacity can depend on it.

What if I have only just started gig work?

Insurers may limit cover until you have a trading history, often a year of accounts. Some will consider your earnings from a previous job. A broker can find insurers that are more flexible with new self-employed workers. Keep your records tidy from the start, so you have evidence ready when you apply. You can raise the benefit later as your accounts build up.

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