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From delays in document preparation to professional mistakes, which put your clients in an awkward position - these are some of the risks involved in running a document preparation service, which can become grounds for claims and lawsuits.
Getting your document preparation firm insured is always a great idea as it will protect your business from any financial liability in case a lawsuit or a claim is made against your company.
How Much Does Document Preparation Service Insurance Cost?
The cost of insurance for your document preparation firm will vary on a number of factors including the size of your business, the state you operate out of, the level of cover you want to take out, the clients you work with, and other variables like that.
The average document preparation service provider in the United States pays around $35 every month for general liability insurance. This totals around $420 per year. This insurance policy will provide your business with cover against lawsuits and claims related to property damage and third party bodily injuries.
As a document preparation service, you must operate on an error-free basis, which is very difficult as mistakes will inevitably happen. And the best way to protect yourselves from those is by taking out professional liability insurance. This policy will cost you around $70 per month or $840 per year.
If you employ any staff, legally, you need to take out worker’s compensation insurance. This policy will provide financial cover for your staff in case they get sick or injured at their place of work. Medical bills, hospital fees, and lost wages are some of the things the insurance company will compensate your staff for.
Business owner’s insurance is another policy document preparation firms need to take out. It costs around $50 per month or $600 per year and combines general liability insurance with commercial property insurance.
What Types of Insurance Do Document Preparation Services Need?
There are various insurance policies document preparation service providers can take advantage of. Typically speaking, the types of insurance you need to take out for your document preparation business will depend on various factors such as the size of your business, the clients you deal with, the number of staff you employ, and other similar variables.
Below, you can explore the best insurance policies for document preparation service providers.
Why Do Document Preparation Services Need Insurance?
One of the main reasons why document preparation services in the U.S. take out insurance is to protect their financial standing in case a lawsuit or a claim is filed against the business.
For example, if a professional mistake is made during the preparation of important documentation - the client can end up suing the service provider and seek compensation. And if you aren’t insured - your business will have to pay out of pocket for the compensation and all the costs associated with the lawsuit or the claim.
When you’re insured, the insurance company will step in and take care of the costs associated with the accident, which will make the whole situation much less stressful and easy to deal with,
Certain states legally require document preparation service providers to have a certain level of insurance cover before they can serve the public. This is done with the goal of protecting everyone involved with the business in case of an accident.
Whatever the case might be - getting your document preparation service insured against all the risks your company is exposed to is a great long-term investment.