As an accountant or bean counter as you are affectionately known as, it is your job to provide professional services to your clients every single day. This service comes with inevitable risks and so it is essential that you have some kind of accountant insurance in place to protect you and to protect your business. No matter how hard you try to do the best job that you can, things happen and you may provide advice that is not entirely accurate. You may also be accused of negligence or misrepresentation due to the financial advice that you have given. It may be that one of your employees makes some kind of auditing mistake and this is an error that you are accountable for as the employer and as the owner of the business.
This is why you need to have some kind of risk control in the form of accountant insurance that can help to pay for any legal costs if your client sues your business for some kind of mistake. It doesn’t matter how hard you try to do your job well because sometimes you are overworked and you forget about certain things before you give inaccurate financial recommendations. There is no doubt that having the correct professional liability insurance in place can help to protect you as a professional accountant no matter what size your business is. The following are some of the instances where you may find yourself needing accountant insurance.
1. * Preparing financial statements – It is unlikely to occur but it may come about that you are one of your employees overlooked a really large expense while you were putting together your clients financial statements. There is a high likelihood that your client might want to sue you because of this because you have cost them money and they have probably paid more tax than they needed to.
2. * Tax returns – It happens to the best of us and clients may experience a large financial loss on their tax returns because one of your employees made some kind of keeping mistake that meant them paying over and above what they actually had to pay. The likelihood of something like this happening to a professional organization is quite small but every business needs to make sure that they cover themselves for all eventualities.
3. * Financial recommendations – It is part and parcel of an accountant’s job to provide the clients with financial recommendations with regards to the money that they have. It may be that your staff overestimated your clients budget and so they are now suffering financially as a direct result.
It just doesn’t make sense to take risks when it comes to your reputation and your business. You have worked really hard to get to where you are now and so it is best to make sure that you have some kind of accountant insurance in place that protects you for all eventualities no matter how low the probability is that you will make such mistakes. We all make mistakes while providing professional services and so it is always best to make sure that you take a policy with an experienced insurance company that knows exactly what it is doing and understands your individual client needs.
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