Professional liability insurance, or errors and omissions insurance, is a type of coverage that protects working professionals from the effects of a client holding them responsible for failing to provide expected or agreed upon results. Most accountant professional liability insurance policies cover the cost of defense costs, judgments, and settlements.
Everyone Makes Mistakes
If you are an accountant and don’t already have a professional liability policy, you should make speaking with your insurance agent to acquire one a top priority. Without it, you may have to cover the expenses of a client holding you responsible for an incident. Depending on the situation, the cost of defending yourself and your business in a court of law could have the potential to cause your operations serious financial harm.
If you think that you do not need an accountant professional liability insurance policy, keep in mind that everyone makes mistakes. Even with the best management practices in place and extensive knowledge of proper accounting principles, you may make an error at some point that could cause one of your clients to hold you responsible.
Don’t Put Your Personal Interests at Risk
Don’t let your business, whether you work for a corporation or provide services independently, remain at risk. If you don’t have a professional liability insurance policy, talk with your insurance agent as soon as possible about the benefits of this type of coverage.