Liability blind spots in the gig economy
Freelancer registrations in South Africa have surged by 53%, according to Outsized’s 2025 Talent-on-Demand Report, reflecting a growing appetite for flexible workforce solutions[1]. From engineering and technology to logistics and healthcare, more specialised individuals are earning a living through short-term contracts and on-demand platforms. While opportunity is growing, however, so too are the risks and many gig workers are unknowingly leaving themselves exposed to costly liability claims.
A lack of awareness around insurance cover is leaving many individuals vulnerable in this expanding sector. The gig economy thrives on speed, flexibility and independence, but these very qualities can mask the reality that gig workers face the same legal and financial risks as established businesses. Without adequate insurance protection, a single claim could wipe out months or even years of income.
A common blind spot is the assumption that freelancers or subcontractors are automatically covered by their client’s insurance. We see claims wherein a company outsources part of a project, for example, excavation work during a construction job, and the subcontractor damages Third Party property. The client’s insurance usually won’t extend to cover the subcontractor unless this is specifically underwritten. In practice, the legal liability often falls to the subcontractor, when third party damage occurs and without adequate insurance, the subcontractor may be left to manage the financial consequences alone.
These risks extend across multiple sectors. For instance, a freelance project manager who makes a mistake that delays delivery could face claims for financial losses. A locum healthcare worker may face allegations of negligence, while a freelance technician could be liable for property damage.
“A lack of awareness around insurance cover is leaving many individuals vulnerable in this expanding sector.”
