Accountants perform a crucial service for individuals, families, and small businesses. Whether providing tax advice or helping a company perform an audit, an accountant’s advice can mean the difference between a person or business having smoothly running finances or descending into fiscal turmoil.
Unfortunately, ours being a litigious society, an accountant can be sued for negligence or for making a mistake that results in financial harm to a client. Even if an act that results in a legal action is beyond the control of an accountant, say that of a dishonest employee, defending against such a suit, not to mention paying a settlement, can be expensive.
What does a liability insurance policy for an accounting firm cover? Basically, such a policy protects an accounting firm from the costs of defending against a legal action, even one that is frivolous. It will also cover, up to a limit of liability, the cost of a settlement. Some policies will even cover a firm from incidents that involve computer breaches. A hacker who accesses a client’s private data can cause untold damage both to a client and the firm doing its books.
Why Carry Liability Insurance?
Besides the obvious reason of protecting the accounting firm from the costs of a legal action, some large clients require that an accounting firm they retain have a liability insurance policy just to do business. It only makes sense, therefore to carry such a policy in order to expand the number of potential clients.
Some liability insurance policies will contain a risk management service, designed to decrease the exposure of an accounting firm to the sorts of errors and omissions that can trigger a lawsuit. Remember, clients will not hesitate to take their accountants to court if they feel that services received are not up to their standards. Without a liability policy, costs can be substantial.
If you would to like to discuss your options for business insurance please call us at 561-732-9305 our quoting hours are Monday through Friday from 8:30 AM to 5:30 PM. In addition, you can request a quote online. Please remember, We Handle All the Work, While You Save!
Robert Macoviak is the President of Oyer, Macoviak and Associates. Oyer, Macoviak and Associates is the oldest independent insurance agency in Boynton Beach and has been in business since 1953. Oyer, Macoviak and Associates are vested members of the community who are committed to doing business face-to-face and being your insurance advocate in times of need.