Editors Note: In the summer of 2020, amidst the COVID-19 Pandemic, I was invited to a wedding overseas and also had to travel across state borders into California, a state which had a large number of COVID-19 cases. During this time, I had researched and looked into some form of income protection in the case I become infected with COVID-19 while on these personal trips. This article covers Kover.ai, an InsurTech company that provides income protection for freelancers and gig economy drivers using blockchain technology (pretty neat).
Gig workers enjoy more freedom and flexibility than employees of traditional jobs. But gig jobs lag in the provision of financial security and stability, and dependability. As gig economy drivers, you get little or no income protection. You also do not enjoy compensation and other benefits like 9 to 5 workers. Your income is erratic. On top of that, gig companies do not cover you. Now, this is where platforms like Kover come in handy.
And especially if you are looking to protect your income in the new year, Kover is currently the best option for you. But what is Kover? Kover is an income protection company backed by the largest American insurance carrier, MetLife Insurance, and a prestigious capital market firm, Techstars. It provides financial protection to rideshare or delivery drivers worldwide. Let us see how.
Freelancer Income Shield
Eligibility
Any active gig worker of UberEats, Postmates, DoorDash, Uber, Lyft, Amazon Flex, Instacart, Wonolo, Shipt, Grubhub, Deliv or Caviar, is eligible for Freelancer Income Shield.
Procedure
You would have to enroll and make the required monthly payments. Once your policy turns active, you will be able to use the income shield’s benefits.
Benefits
Freelancer IncomeShield is Kover’s income protection plan that you can avail. It provides freelancer gig workers with benefits like income protection and paid sick leaves. Other perks include 24/7 Telehealth, legal assistance, tax deduction, and bookkeeping facility.
Let us look at these benefits in detail.
Income Protection
Gig drivers suffer from loss of income when they cannot work due to post-collision repairs, hospitalization, or temporary account deactivation. The income protection policy of Kover comes as a relief to gig drivers. It reimburses 80% of their lost income in such scenarios.
Accident Protection
Eligibility
To be eligible for accident protection, firstly, your policy must be active. Secondly, the traffic collision’s date should be after the membership start date. Apart from this, you would also have to produce proof of the accident.
Procedure
You can file a claim on the date you send your vehicle to the collision center with the required proof. You can request the payout once your claim is approved.
Benefits
You will not be able to work while your vehicle is in the repair shop. Kover provides you with the best income protection in such a situation. Under this policy, you will receive a payout of 80% of your daily income across all your linked gig platforms.
You can enjoy the benefits of this policy whether or not you are at the fault of collision. Even if the accident happens while driving for personal use, you can still receive a payment.
This accident protection offered by Kover would have been very helpful to me back in 2015 when I first started out as a gig driver. About four months after I started doing food delivery and rideshare, my first Prius was totaled. I had to wait almost a month before my insurance payout cane so I could get a new Prius. During that time, I had to use a Subaru Legacy rental and I could not earn from rideshare. This was during 2015 when rideshare rides were easily worth $20-30 a trip. My income plummeted. Income protection in the case of these situations didn’t exist then. Kover makes it possible now.
Hospitalization Protection
Eligibility
Active Kover members hospitalized after the membership start date are eligible. Members seeking a payout from this claim must provide the required proof and the necessary details.
Procedure
You must link all the platforms you work for at the enrollment time on the Kover website. After this, you must apply for the claim with proper proof and documentation. Once your request is approved, you can start reaping the benefits of this claim.
Benefits
You will receive 80% of your daily income across all the platforms you work for as a daily benefit for the duration you are in hospital.
If you’re driving in 2021, Hospitalization Protection is a Godsend with COVID-19 running around still. I’m making over $2,000 a week with gigs. So, right now, I am a bit paranoid about COVID-19 putting me out of work. But if I end up in the hospital and can’t work because of this Coronavirus, 80% income would mean $1,600 a week. That’s a nice safety net to have in these uncertain times.
Deactivation Protection
Eligibility
This policy comes as a relief to gig drivers who are unable to work due to account deactivation. Members with an active policy are eligible for payout under this policy.
Procedure
Gig workers can file their claims through the Kover web portal with proper proof. Your benefits will start from this policy as soon as your request is approved.
Benefits
This protection replaces 80% of your daily income. You receive compensation from Kover until you are reactivated or your benefits run out, whichever occurs first.
Sick Leave
Eligibility
Any Kover member with an active policy can request Sick Pay Benefits.
Procedure
You can request a payout under this policy from the Kover web portal. You will receive a payment that you have to pay back within the stipulated time. The failure in payback will lead to membership termination.
Benefits
The Sick Pay Benefit allows you to borrow from your future self. You can do so by requesting a Cash Out when you feel sick and unable to work. The Sick Pay Benefits is $100 for each submitted Cash Out request.
Other Perks
Tax Deduction
Kover members get a free subscription to a Hurdlr Premium account. It allows you to maximize tax deductions and save money.
Legal Assistance
You also receive complimentary legal consultation with top lawyers at LegalRideshare. You can have access to free legal assistance from them.
Bookkeeping
All the Kover members have access to Hurdlr. Hurdlr allows you to record your business expenses. It also tracks mileage when you do gigs. It thus helps you to maintain your books without any hassle.
Hurdle is one of the top mileage tracking apps for gig economy drivers.
24/7 Telehealth
Kover provides a 24/7 free telehealth facility for gig drivers and their families. You can request a free consultation with a health expert.
Conclusion
Gig economy drivers struggle with irregular income. Plus, always being on the road envelopes them with higher risks for which gig companies provide no coverage. Kover covers you and protects your downsides so that you enjoy greater financial security and stability.
