Freelance transcriptionists, like many other self-employed professionals, can benefit from various types of professional insurance to protect themselves and their businesses. You might think that as a freelancer or small business owner, you are too small to need insurance, that insurance is too expensive, or that insurance is not necessary for remote workers who do not have a physical office location. However, you still need protection from the risks that are inherent when running any business. This guide will explain which types of insurance are essential for freelancers and small businesses, and provide a list of resources for finding the right insurance for your transcription services.
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Why Transcriptionists Need Insurance
The reasons for getting health and life insurance are obvious, but protection from financial claims and lawsuits is also necessary when you’re self-employed. Personal and business insurance also protects against disasters and other unexpected circumstances, like loss of income due to a pandemic. Fortunately, business insurance is not expensive and spending a little now can save thousands of dollars later.
Types of Insurance For Transcriptionists
As a freelance transcriptionist or transcription company owner, you need to think about what perils you might need protection from. These are perils unique to being self-employed, specific to the type of transcription work you do, and possibly related to working remotely, whether you travel while working or work from one location all the time. We’ll start with the obvious insurance types and then dive into the types of insurance you may not realize you need!
Health Insurance
While not directly related to the transcription work itself, health insurance is essential for transcriptionists to ensure that they have access to healthcare services and are protected against unexpected medical expenses. You certainly don’t want to be left with a huge medical bill after an illness or injury that requires you to take time off work.
Life Insurance
Life Insurance ensures that your loved ones are financially taken care of and can maintain their standard of living, as well as cover your outstanding debts and financial obligations. Life insurance can also be crucial to ensure the business’s continuity by helping to cover the financial gaps left by your absence, enabling your business to continue operating smoothly and without interruption.
Homeowner’s/Renter’s Insurance
You need insurance that will cover your physical property like your computer and any other transcription equipment you use like a foot pedal. Homeowners and renters insurance also protects your home office workspace in the case of fire, storm damage, theft, etcetera.
Professional Indemnity Insurance
Also known as Errors and Omissions insurance, professional indemnity coverage is crucial for freelance transcriptionists and transcription company owners. It provides protection against claims related to errors or omissions in your work, including potential legal liabilities if a client is dissatisfied with your services or suffers financial losses due to your work. Even though accuracy is always a transcriptionist’s top priority, the smallest mistake could cost you quite a bit. Simply omitting a comma can change the meaning of a sentence and if that altered meaning results in a loss to your client, you could get sued.
Worker’s Compensation Insurance
You need worker’s compensation insurance even if you don’t have employees. Transcription work can easily lead to carpel tunnel and other injuries related to sitting at a desk and using headphones for long periods. Purchase a policy for yourself to cover medical expenses and lost wages in the event of any work-related injury.
Cyber Liability Insurance
Given the digital nature of transcription work and the sensitive information often contained in our clients’ audio and video files, cyber liability insurance can be quite important. It covers you in case of data breaches, cyber-attacks, or the accidental exposure of sensitive client information. We’re constantly transferring files back and forth with our clients and most files are stored in the cloud these days. The truth is that we have no control over what happens to those files while they’re in cyberspace.
Business Interruption Insurance
This type of insurance can be beneficial if unforeseen events like a natural disaster disrupt your work and income. It helps cover your financial losses during downtime. This will include lost income and can also include extra expenses incurred as a result of the interruption, like renting temporary office space.
Where Transcriptionists Can Get Insurance
I recommend an insurance broker. Using an insurance broker can be a smart choice when you’re navigating the complex world of insurance. They can provide you with expert guidance and advice on the most suitable insurance coverage for your specific needs. Brokers can also help you understand the intricacies of insurance policies, making sure you get the right coverage. They work with multiple insurance companies, which means they have access to a wide range of insurance products and can compare policies from different providers. This ensures that you have access to a variety of options and can choose the one that best fits your requirements and budget. Brokers streamline the process by doing the research and paperwork for you. They can even help you navigate the claims process, ensuring that you receive fair compensation in a timely manner. Contrary to the misconception that using a broker is more expensive, they often help you find cost-effective insurance solutions. They understand pricing structures and can identify discounts and cost-saving opportunities.
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Here are a few insurance brokers and companies to consider:
Coverage Connection
Coverage Connection helps freelance transcriptionists and small business owners find health insurance. They offer options for individual and family plans in all 50 states.
Intelliquote
Intelliquote can help transcriptionists find life insurance. Policy options include term, whole life and final expense coverage for any amount of coverage you want.
Insuranks
Insuranks is a one-stop insurance shop for freelancers and small business owners, offering quotes for life, health, travel, home, and business insurance from several companies.
Thimble
Thimble provides transcriptionists with small business, liability, errors and omissions, property and equipment, and worker’s compensation insurance.
Insureon
Insureon offers independent contractor, cyber, liability, errors and omissions, worker’s compensations, and property insurance to freelance transcriptionists and small business owners.
Embroker
Embroker’s policy options for transcriptionists include coverage for business, cyber, liability, errors and omission, and worker’s compensation.
The specific insurance needs of a freelance transcriptionist can vary depending on the type of transcription, the scale of their business, the number of employees (if any), the nature of the work, and potential risks. It’s advisable to consult with an insurance agent or broker who specializes in serving freelancers to determine the most appropriate coverage for your unique situation. Remember that having the right insurance in place can provide peace of mind and protect your business from unforeseen risks.
For more tips on building a successful career in transcription, download my FREE guide, 30 Days to Start a Transcription Company. This quick-start guide is packed with tips, tools, and resources that will take you from freelancer to small business owner.
