About General Liability Insurance

All businesses, regardless of industry, face risks that should be covered by insurance. The most common and comprehensive type of policy business owners invest in is general liability insurance (or CGL).

Some of the risks CGL insurance covers are:

  • Bodily injury
  • Property damage
  • Medical payments
  • Legal defense and judgment
  • Personal and advertising injury

While businesses aren't legally required to carry general liability insurance, operating without it is extremely risky. If your business is sued, you could end up facing fees totaling hundreds of thousands of dollars (or more). Having a sufficient CGL policy in place to help compensate for these damages is the only way to prevent this type of event from devastating your business.

Learn more about the risks covered by general liability insurance.

COMMON SITUATIONS THAT GENERAL LIABILITY INSURANCE WOULD 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.

Of course, this is not an exhaustive list of perils a general liability insurance policy will cover, and some conditions may result in a particular peril not being covered. It's always best to talk to your agent in-depth about the specifics of your policy to avoid blind spots in coverage.

Cost Of General Liability Insurance

On average, transcription businesses in America spend between $300-$600 per year for $1 million in general liability coverage.

Check out the chart below for a snapshot of average CGL expenditure across a variety of industries:

Graph showing average price of general liability insurance prices per industry

Several factors will determine the price of your policy. These include your:

  • Location
  • Deductible
  • 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.

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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.

Types Of Coverage Some Transcription Businesses May Need

In addition to the policies outlined above, there are a few other types of coverage your transcription business may require depending on certain aspects of your operations. Some of these might not apply to you, so be sure to ask your agent which policies are right for your business.

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 should not be your frontline defense. Yes, insurance will compensate for your business' financial losses after an incident occurs, but it's much better to avoid losses altogether.

With this in mind, here are three things you can do to better protect your business:

  • Use legally robust contracts and other business documents. (We offer free templates for some of the most common legal forms.)
  • Set up a limited liability company (LLC) to protect your personal assets. (Refer to our guide for step-by-step instructions on how to form an LLC in your state.)
  • Streamline your business' internal processes. This will remove unnecessary variables from common tasks and create a safe, consistent environment for conducting business.