Why Accountants Professional Liability Insurance Is Important
A successful accounting business relies on accuracy when handling columns of numbers and on discretion of the staff. Just one mistake could mean thousands of dollars of loss for a client. Although you try to be meticulous, you’re also human. Errors happen. When you have accountants professional liability insurance, you’re covered for errors and mistakes if a client brings a lawsuit against you.
Your errors & omissions insurance may cover:
- Neglecting a promised service, such as not filing a tax form on time
- Professional negligence, like failing to include a key form in a tax return
- Incomplete or incorrect work
- Other mistakes or oversights
Even if the client’s claim is without merit, a defense is very costly to your firm. Accountants professional liability insurance covers the fees of a legal defense, freeing you to focus on your business.
Financial professionals face different liabilities than lawyers and doctors. Your insurance should be tailored to your business’ needs. You must still be careful in your daily operations, so you may think that errors & omissions insurance is unnecessary. You don’t even have to make a mistake to have a client bring a lawsuit against you, so this type of insurance is your risk management strategy. Discuss your insurance needs with an insurance specialist who understands your profession and can help you find the solution so that you can have peace of mind.