Whether you're a large transcription services company or small business with one or several or no employees, you may be required by State or Federal laws, or your vendors/subcontractors, to carry insurance.
In this article we're going to review what type of insurance you may need, how much it could cost, and where you can get coverage.
There are many insurance companies in the U.S. And you don't have to shop all of them for insurance to get the best deal, however, we recommend you contact several brokers for quotes and than compare coverage and pricing. Personally for business insurance and workers compensation we use and recommend Paperless Insurance Services. They are brokers, who have access to multiple insurance companies and provide comprehensive and competitive insurance coverage we can afford.
For transcription service business there are 3 types of most common insurance:
1. General Liability or Business Owners Policy: covers bodily injury or property damage losses. General liability insurance will pay for legal representation in the court, litigation, and damages. Business Owners Policy also includes coverage for your business personal property against thefts, fire, and other common causes that can destroy it. Usually, the premium is low and starts from $250 for General Liability only and $500 for Business Owners Policy.
Case example: Say you have an office and your clients stop by to drop off some tapes or discs for transcription and flips over a step. You call for emergency and possibly, later, being sued for bodily injury. General Liability should help.
Case example: your expensive equipment for transcription is stolen or destroyed by fire. Insurance company will pay for new equipment and for lost income, while equipment was in the process of ordering, shipping, installing etc...
Common Limits: $1,000,000 per occurrence
2. Workers Compensation: if you have employees you're required to carry Workers Compensation insurance. This coverage will provide payments for medical bills and lost wages, and rehabilitation for employees injured when performing their job duties. In some States you must provide the Workers Comp. coverage for subcontractors as well. Please consult with your local authorities. The cost of Workers Compensation should not be high, and is regulated in each State. In California, for example, the rate is 0.6 per $100 of payroll. Another words, you're paying $6 for each $1000 of payroll. There are certain minimum premium requirements with each carrier in each State, but generally speaking, Workers Comp. starts from $525/yr.
Limits: Each U.S. State has own workers compensation insurance law and limits required on the policy.
Case example: Say, similar accident happens with your employee, who is trapping over a broken step. Workers Compensation should help.
3. Professional Liability, also known as Errors and Omissions: this is the coverage that provides payments for unintentional errors or omissions in your work.
Case example: You work with a School District and transcribe lectures for school teachers, so later the school district can publish new textbooks. A mistake has been made in transcription and is discovered after 50,000 textbooks are printed. Now the School District has to print those again... And guess who is paying for that? Right, your professional liability insurance.
Case example: You work with a lawyer and transcribe testimonies and make mistakes... Oh, you don't want mess with that...
Limits: $1,000,000 per occurrence.
This is not an offer for insurance. Please contact your licensed broker to obtain actual quotes.
Case examples are fictitious. Insurance claims are reviewed on a case by case basis and availability coverage is not guaranteed.
We're not legal advisers. Please consult with your legal adviser to learn how a lack of insurance coverage may affect your business operations, and what are the appropriate coverage limits and options for you operations.