Transcription Business Insurance
Getting insurance for your transcription business is essential.
This is because owners of transcription businesses need to protect themselves against a variety of different risks, such as those that relate to negligent omissions, work-related injuries, and indemnity claims.
You will also want to make sure that you protect yourself against accidental damage or theft in relation to your transcription equipment.
We’ll help you find the most personalized and affordable coverage for your unique business.
Recommended: Next Insurance is dedicated to matching small businesses with the right policy at the best price.
Best Insurance for a Transcription Business
General liability insurance is — generally speaking — one of the most important insurance policies for transcription businesses.
Some of the risks general liability insurance covers are:
- Bodily injury
- Property damage
- Medical payments
- Legal defense and judgment
- Personal and advertising injury
Keep in mind that it might be a good idea for your transcription business to purchase additional coverage. This is because a general liability policy is not always enough to protect it from all potential risks:
- Employment law disputes: Workers’ compensation insurance
- Damaged or stolen equipment: Commercial property insurance
- Negligent acts or omissions: Errors and omissions insurance
You will also need to decide what type of business insurer you will purchase your coverage from. As of 2023, there are two options available:
- Traditional brick-and-mortar insurers (e.g., The Hartford, Nationwide, etc.).
- Online insurers (e.g., Tivly, Next Insurance, etc.).
In most cases, we recommend going for an online insurer as a small business owner due to the fact that it’s the most affordable option.
Find the Right Policy at the Best Rate
We’ve reviewed and tested the major business insurance providers. Let us help you find the best match for your business.
Cost of General Liability Insurance
On average, transcription businesses in America spend between $300-$600 per year for $1 million in general liability coverage.
Compare the average cost of general liability insurance for a transcription business to other professional industries using the graph below:
Several factors will determine the price of your policy. These include your:
- Number of employees
- Per-occurrence limit
- General aggregate limit
You may be able to acquire general liability insurance at a discounted rate by purchasing it as part of a business owner’s policy (BOP) rather than as a standalone policy.
A BOP is a more comprehensive solution that includes multiple forms of coverage, such as business interruption and property insurance.
Start an Online Quote for Insurance
Finding the most affordable premium starts with getting accurate quotes from highly rated providers.
Common Situations That General Liability Insurance May Cover for a Transcription Business
Example 1: Your cleaning crew uses the wrong solution on the floor, causing a client to fall. Her medical bills would be covered under your general liability policy.
Example 2: Hoping to hire several new employees, you have applied to attend a job expo. The venue requires evidence of at least $1 million in liability insurance. General liability insurance would help fulfill this obligation.
Example 3: While delivering lunch to your staff, the delivery driver slips on ice in the parking lot and breaks both arms. Your general liability policy should cover his medical bills, legal representation, and any awarded damages if he decides to take you to court.
Check out our review of the Best Small Business Insurance Companies.
Other Types of Coverage Transcription Businesses Need
While general liability is the most important type of insurance to have, there are several other forms of coverage you should be aware of. Below are some other types of insurance all transcription businesses should obtain:
Commercial Auto Insurance
If someone from your staff is involved in an auto accident while performing business-related activities, commercial auto insurance can pay to repair damaged vehicles, third-party liability claims, and lost equipment. While minimum coverage limits are state-mandated, business owners are encouraged to protect themselves financially by considering higher limits.
Commercial Property Insurance
A commercial property insurance policy is purchased to protect a business’ investments. Should a loss, such as a windstorm, theft, or fire occur, the policy would pay to repair or replace owned real estate and any business-owned assets kept onsite.
Inland Marine Insurance
When purchasing your business policy, be sure to discuss coverages and exclusions on your commercial property insurance. If you travel off-site with your business tools, an inland marine policy may be necessary. Inland marine insurance fills a coverage gap, ensuring business property, equipment, and tools are covered when taken off premises.
Workers Compensation Insurance
The state mandates that all businesses with employees must carry workers’ compensation insurance. Its purpose is to provide medical coverage for on-the-job injuries. In the event of a more serious incident, the company will be provided legal representation, and court-awarded damages are paid up to the limits of the policy.
Professional Liability Insurance
If a client feels they have been harmed due to your professional negligence, they may sue your business. A professional liability policy, also known as Errors and Omissions (E & O) insurance, covers expenses and awarded damages related to such a lawsuit.
Additional Steps To Protect Your Business
Although it’s easy (and essential) to invest in business insurance, it shouldn’t be your only defense.
Here are several things you can do to better protect your transcription business:
- Use legally robust contracts and other business documents. (We offer free templates for some of the most common legal forms.)
- Set up an LLC or corporation to protect your personal assets. (Visit our step-by-step guides to learn how to form an LLC or corporation in your state.)
- Stay up to date with business licensing.
- Maintain your corporate veil.
Business Insurance Is the Best Way to Protect Your Business
If you're starting a new business, then you need business insurance. It's as simple as that. The protection offered by an LLC will protect your personal assets, but your business's assets are still open to liability in the case of a lawsuit or other loss.
Be sure that everything you've built is safe by getting business insurance.
Transcription Business Insurance FAQ
Can I buy business insurance online for my transcription business?
Yes, absolutely. You will need to first get a quote from an online business insurance provider like Next Insurance. Next allows you to then purchase a policy immediately and your coverage will be active within 48 hours.
What is included in a business owner’s policy?
A typical business owner’s policy includes general liability, business interruption, and commercial property insurance. However, BOPs are often customizable, so your agent may recommend adding professional liability, commercial auto, or other types of coverage to your package depending on your company’s needs.
What is the difference between business insurance and general liability insurance?
"Business insurance" is a generic term used to describe many different types of coverage a business may need. General liability insurance, on the other hand, is a specific type of coverage that business owners need to protect their assets.
Do I need insurance before I start a transcription business?
Generally speaking, yes.
We recommend purchasing your business coverage (e.g., general liability, workers’ compensation insurance, etc.) before you begin operating.
This will ensure that your business’s assets are protected from the moment you begin interacting with clients and/or employees.
Will insurance protect my transcription business from everything?
Not necessarily. Certain exceptions may be written directly into your transcription business insurance policy, and some perils may be entirely uninsurable.
Do I need business insurance if I already have an LLC?
Yes, an LLC is meant to create a legal barrier between your business and your personal assets and credit. If you haven’t formed an LLC yet, use our Form an LLC guide to get started.
An LLC doesn’t protect your business assets from lawsuits and liability– that’s where business insurance comes in. Business insurance helps protect your business from liability and risk.