Nearly 1 in 4 Canadians are turning to gig work; here's what to consider

The gig economy is rapidly growing in Canada, with nearly a quarter of Canadians engaged in some form of gig work—whether as freelancers, contract workers, or self-employed professionals. 

Picture this: you've turned your passion into a thriving side hustle—maybe you're running an online shop with handmade jewelry, crafting custom mugs with quirky designs, or capturing stunning photos as a freelance photographer. 

Exciting, isn't it? The freedom, flexibility, and independence of being your boss. But there's a trade-off as you don’t get benefits like full-time staff.

For many Canadians, flexible work arrangements aren't just a passion project but their primary source of income. Others use this work to supplement their full-time employment and help manage the rising cost of living. 

The challenges of starting gig work

While gig work offers flexibility and independence, it also comes with unexpected expenses that can impact your financial stability.

Gig workers often face challenges such as managing taxes and coping with unpredictable income—issues inherent to being self-employed. However, concerns like the lack of traditional workplace benefits, pensions, unpaid sick days, or vacation time become far more pressing when gig work is a primary income source rather than a supplement to a full-time job.

Other benefits you'll be missing

Unlike traditional employees who receive health, dental, and life insurance benefits through their employer, independent workers are responsible for securing their coverage.

Medical costs to consider

For many Canadians without workplace medical coverage, including gig workers, the cost of essentials like a new pair of glasses can be a significant burden if they aren't covered under OHIP.

Prescription medications, for example, are typically not covered unless you qualify for a government assistance program. Additional costs for services like ambulance rides and medical equipment such as wheelchairs only add to the financial strain—particularly for gig workers or those without private insurance.

Dental care is another significant expense, with routine checkups, fillings, and orthodontic work excluded from provincial plans unless you have private insurance.

Vision care isn't covered either, meaning most adults must pay for eye exams, glasses, and contact lenses. Mental health services like therapy and counselling often have limited access unless referred by a physician, and even then, options can be scarce.

Health and dental insurance can help cover these medical expenses, making it a smart idea to get coverage if it's not provided through your workplace.

Protecting your family's financial stability

Most salaried employees receive life insurance as part of their benefits package, but gig workers? They need to figure it out on their own. 

A 2023 PolicyMe poll found that 44 per cent of Canadians don't have life insurance, and of those who do, 62 per cent have a policy through their employer. 

As your own boss, you don't have the safety net of employer-provided benefits. Life insurance can help provide financial security for your loved ones, covering expenses like debts, mortgages, or lost income if the unexpected happens. 

With careful planning and the right coverage, you can enjoy the benefits of gig work. For questions about insurance, book an appointment with a licensed CAA Protect insurance advisor today for a free personalized assessment.

Have a question? To speak to a professional who can guide you to the right coverage from the right insurer at the right price call us at 1-800-709-5809 or email us at info@caaprotect.ca