Insurance should be the first thing people consider when starting a small business. The Zebra reported that 90% of all business owners experience a lawsuit at some point in their business life. In addition, the process serving industry can be unpredictable; you want to find a process server with insurance to keep you safe in case of an accident.
What is a Process Server?
A process server is a person, usually appointed by the court, who delivers court documents for a living. They are an essential part of the legislative system, ensuring that Americans have the opportunity to receive their constitutional right to due process.
A professional process server who takes his job seriously will have liability insurance. In addition, business insurance has become required by landlords renting office space, online search engines such as Google Local, and several social media networks before they will allow you to sell or advertise on their sites.
Are process servers required by law to have insurance?
Insurance laws for process servers vary by state. Though most states don’t require process servers to have insurance, process servers are widely encouraged to stay covered by insurance. Therefore, an easy way to spot an experienced process server is to ask if they are insured. Most serious professional process servers have insurance because the cost of a lawsuit is more expensive than the price of the insurance policy.
What Are the Benefits of Having Process Server Insurance?
Insurance protects your business from claims from customers or employees, damages or accidents caused by your negligence, and having proof of insurance can make your clients feel comfortable. So again, the benefits of having insurance protecting your business far outweigh its cost.
Why should a process server have insurance?
According to reports pulled from SmallBizDaily, Forbes, RocketLawyer, and Practical Business Knowledge, 43% of small business owners are threatened with a lawsuit each year, and the average liability suit costs around $54,000.
The Insurance Journal shared several examples of common small business claims and what they cost.
- Reputation Harm, $50,000
- Vehicle Accident, $45,000
- Fire, $35,000
- Product Liability, $35,000
- Customer Injury or Damage, $30,000
- Customer Slip and Fall, $30,000
These statistics show the damage one claim can do to a business and should impress the importance of finding a process server with insurance.
How Does My Process Server Having Insurance Affect Me?
Insurance protects businesses financially against claims of being negligent, but they also protect the business’ customers. If a customer suffers in some way because of negligence on the side of the process server, then the process server’s insurance will pay to right the wrong. If a process server doesn’t have insurance, it is likely that they won’t be able to afford to pay you for whatever their mistake costs. To say it a different way, you want a process server with insurance because if an accident occurs, you want to know they will be able to afford to pay you for the damage caused.
How Can I Tell If My Process Server Is Insured?
You can check if a process server has insurance by requesting to see a copy of their certificate of insurance. Having liability insurance typically means a business owner is a serious professional and can be trusted. Process servers with insurance are more likely to be responsible, organized, and able to provide a solution to an accident.
Most Common Types of Business Insurances and What They Cover:
Knowing that your process server has insurance is great, but it won’t mean much to you if you don’t know what each insurance covers. Two of the most common types of liability insurance that most process serves have are professional liability (errors and omissions) and general liability.
Professional Liability (errors and omissions)
Process servers hold an essential role in the community and are crucial to legal proceedings. Unfortunately, because of the sensitive nature of their work, it is easy for a small mistake to have enormous consequences. Professional liability insurance covers negligence, legal defense costs, bad advice, misrepresentation, bad faith, copyright infringement, malpractice, omissions, claims, and damages. A few examples of what it doesn’t cover are intentional acts of omission, property damage, medical expenses, and bodily injury.
People blame process servers for all sorts of things like damaging a door by closing it too hard or more serious claims such as a client slipping and falling due to negligence. Your general liability insurance would cover the cost of these claims. General insurance usually covers costs associated with third-party property damage, third-party bodily injuries/accidents on commercial property, personal and advertising injuries such as slander or privacy violations, product liability damage resulting from the company’s product, and medical expenses. It doesn’t cover professional services, damage to your personal property, damage to your work, injury to your employees or workers’ compensation, automobiles used for your business, and intentional injury or damage.
Process servers are an essential part of our justice system, and they need to protect themselves and their business. Potential clients will feel content to know that their process server is covered for an unforeseen situation. Having business insurance can positively affect any business and show that they are serious and professional.
And that wraps up our episode for today. Thank you for listening and we’ll see you next time!
The foregoing podcast has simply been presented for informational purposes only. He or those at Lafayette Process Servers LLC, are not attorneys. If you seek further information about this topic, please make sure to contact an attorney in your local area.