Document Preparation Services Insurance
Document Preparation Services insurance is essential for any company that supplies these important services to individuals as well as to other companies.
This is especially the case if you have a company supplying these services for the US government or local state, county or city authorities.
Student loan document preparation
Many of the documents you are asked to prepare may be dealing with loans to students.
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These must conform to standards that are regulated by the relevant laws.
There have been cases where companies preparing student loan documents have been ordered by the Federal Trade Commission to pay substantial penalties for misrepresentation.
Protect yourself by having the right insurance or you are facing substantial risks.
Document preparation services for housing and construction
You may be required to prepare documents for any of the following actions;
- residential mortgage document preparation
- residential bank loans
- in-house loans (interim loans for construction or home improvements)
- loans with guarantors
- construction loans with a mortgage upon completion
Legal document preparation services
It is essential if you are providing legal documents to be working according to the laws of the state in which your office is located.
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Start off by referencing the state bar association in your jurisdiction.
This creates additional risk of professional liability in case a claim is made that the documents did not conform to the requirements.
What risks must be covered in document preparation services insurance?
In case a customer claims that you failed to deliver the promised, proper and appropriate service in some way, you can face a costly court case.
Then, you need to provide a defense of your actions, and run the risk of a decision by the court that you need to pay damages as well as the claimant’s legal costs.
This can easily add up to many thousands of dollars even in the case of an insignificant complaint by a customer.
Professional liability insurance
When you are producing written agreements and documents, the main risks relate to claims made that your output resulted in:
- Violation of civil rights or racial discrimination
- Improper wording in a document
- Violation of rights to privacy.
These are all intangibles that involve emotional responses from customers.
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Without professional liability insurance it is difficult to fully prove without doubt that the claim is false.
In any case, your business can have to defend against a lawsuit in a court case and even if in the end the case is judged in your favor, the defense costs can be high.
Operating from your premises, or visiting with customers in their own homes or offices means you are responsible for the safety and protection of third parties and their property wherever they are with you in your working area.
For example, if you are interviewing a customer at their office and a visitor trips and falls over a power cable running from the wall to your printer, they could sue you for injury or damage that they claim is due to your negligence.
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General liability insurance covers and protects you from a claim that comes from any third parties such as family members of customers, or visitors to your office that allege damage to themselves or harm to their property while they were with you. It will cover:
- medical treatments for injuries, including hospital and ambulance charges
- Any loss of earnings due to the accident
- Funeral expenses in case of death
- Claims of emotional distress
- The cost of repairing or replacing any damaged or lost property
- misuse of a third party’s adverts
- accusations of slander or libel.
Probably the most essential benefit of liability insurance is that the insurer must carry legal defense.
If a claim is made, regardless of fault, the insurance company must defend you in court.
Asset insurance for document preparation services
Commercial vehicle insurance
Private auto insurance doesn’t cover anything like theft or accidents if the car is being used for business activities, like transporting customers or yourself.
You need to have a proper commercial vehicle insurance package to cover you in case of a collision, or damage, fire, or theft.
It also covers medical expenses, legal bills, and property damage.
You may have invested in unique and expensive equipment and you need to cover the costs to replace in case of any damage, loss, or theft.
The equipment may be lost due to fire, accidental damage, or theft.
Such events can wipe out your whole investment in one minute.
To protect yourself, you need full-level equipment insurance.
It means that you can re-equip your document preparation services business with all you need to keep your operation running smoothly.
Commercial Property insurance
Suppose you lease or own property from which you conduct your operations.
You will need commercial property insurance in such a case, especially to protect the liability if there’s a mortgage.
The level of cover should match the value of the premises and contents in case of storms, earthquakes, fire and storms, as well as against deliberate acts such as theft and vandalism.
Business Owners Policy (BOP)
This usually gets you the required cover at a lower premium.
BOP insurance protects in case any claims of injury or property damage are made.
It can be the best choice for small and medium-sized document preparation services providers such as you.
Temporary insurance for document preparation services
Short-term insurance can save you money if you work part-time or only in certain seasons, such as during college semesters when you are providing student loan documentation.
Temporary insurance covers the specific period when you will be busy and because you are only paying for that period, you will save by paying lower premiums but still have the required level of risk cover.
Short-term insurance means that you buy the cover for a defined period starting on a specific date and extending over a designated period, for example, for the three months of summer semester starting on the specified date.
Workers Compensation insurance
There is a legal requirement to have workers compensation insurance in all states where your business has more than the designated number of employees.
Workers compensation insurance covers your employees, whether full-time, part-time or casual, if they suffer an injury or become sick due to work.
Failure to meet the statutes can leave you obliged to pay penalties as well as having to bear any resulting claims personally.
The possible benefits cover medical expenses, lost wages, rehabilitation and even death benefits.
You can get workers compensation cover from private insurance providers in all states except Ohio, North Dakota, Washington, West Virginia, and Wyoming, which only authorize coverage from government-run monopoly state funds.
Average levels of recommended insurance for your document preparation business
Check with local insurance brokers and insurance agents, or talk to an insurance company representative to find out what’s best for your particular business needs.
The list below is of annual premiums we have collected for the main types of insurance matching your own needs.
|Insurance type||Expected range of annual premiums|
|General liability insurance||$300 – $500|
|Public liability insurance||$200 – $400|
|Commercial vehicle insurance||$1200 – $2200|
|Commercial property insurance||$900 – $1200|
|Equipment insurance||$100 – $300|
What are document preparation services?
Drawing up agreements between individuals and corporations requires documentation that conforms with local, state and federal regulations.
Any business that offers services such as a paralegal (non-attorney) for customers seeking divorce papers, legal documents or real estate transfer documentation has a “duty of care” to ensure that the documents conform with the applicable laws, and also that the documentation protects the interest of your customer.
What are federal document preparation services?
Companies or individuals that have to file documentation with Federal Government offices must make sure that the documents match the legal requirements, or risk having their papers rejected.
This can result in delays and higher costs, or even outright rejection.
Your customers therefore come to you with expectations of competent service, and could take legal action in case a denial can be due to some mistake on your part.
What are the types of Document Preparation Services?
In this table, we present the general categories of activity, along with the specific designation of the service:
|Legal||Affordable divorce document preparation services
Court document preparation services
Divorce document preparation services
Legal document preparation services
|Property||Letter of credit document preparation services
Real estate document preparation services
|Financial||Letter of credit document preparation services|
|Student loan||Student loan document preparation services|
|Government||American Federal document preparation services
Immigration document preparation services