Tax and accounting work is complicated, and constantly changing regulations are only creating more of a strain. Errors happen to anyone in this career field including simple oversights, misjudgments, and poor communication between clients. Accountants Professional Liability Insurance helps protect professionals in this field protect themselves from possible falls like lawsuits and other legal matters. Here’s a look at why it’s important to invest in this type of insurance if you’re business or role handles the accounting, finances or taxes of a specific client.
Professional liability insurance for accountants protects accounting clients’ assets while also keeping businesses running smoothly. The challenging nature of being a CPA, accountant or tax professional brings with it a number of risks. According to QuickBooks, everything from cash flow forecasting to outsourcing payroll all play threatening roles, amounting to possible issues between clients. One slip up, or even just a small mistake, can bring serious consequences.
Even if companies have resources like in-house counsel, auditing standards, and tax adherence, CPA firms still have claims alleged against them. No matter the size of claim having something disrupting your reputation and your own company’s finances can only be a hindrance.
What to Think About
Depending on the type of work you do, the size of your practice, and your tolerance for risk, coverage plans can vary. Different accountant insurance firms offer different prices, but it’s important to know why you want to be covered. This will offer you some natural guidance as in what to look for. What you do have to take into account are legal costs that could potentially pile up, like coverage costs, legal defense costs, penalties, and settlement costs vary considerably.
Ultimately sitting down with a professional liability insurance provider to assess your risks and help weigh out pros and cons of coverage (when it comes to covering your mistakes, the pros outweigh the cons) is the best way to find a policy that’s not only affordable, but effective in meeting the needs of your accounting firm.
Even if you’ve done nothing wrong, and can prove it, just having legal issues brought up shines a bad light on your company. Costs from legal issues and court appearances add up quickly and put a wrench in your company’s financial security. As an accountant, investing in accountants professional liability insurance is a solid course of action to protect your firm not just in the short-term, but in long-term finances and future clients.
About Walker & Associates
At Walker & Associates Insurance, we have been a leader in helping to protect businesses and families since 1960. Our coverages are written to cover your business inside out. For more information, we invite you contact us today at (800) 213-7126.