Clients can sue their accountants for a variety of issues, including, but not limited to, errors in financial statements, errors in auditing activities, negligent tax filings or tax preparation, failure to detect embezzlement and poor management advisory services. Professional liability insurance can protect accountants from these errors and omissions, providing much-needed peace of mind and financial protection.
More and more clients expect their accountants to carry the proper insurance. Without professional liability coverage, you may miss out on key opportunities, which can directly impact your bottom line.
While you may take every necessary precaution to avoid errors and omissions, costly lawsuits can arise from just one mistake. Professional liability insurance can reimburse policyholders for legal fees, court costs, administrative expenses, and any settlements or court judgments. Because your clients won’t hesitate to take legal action if you fail to meet their expectations, financial protection is more important than ever.
While the pricing of a policy can differ depending on the insurer and a firm’s unique risks, professional liability insurance is often very affordable. Many polices cost just 1 per cent of an accounting firm’s annual revenue.
As a benefit of coverage, some policies provide a number of risk management services. These services can help accounting firms proactively reduce their exposures. In addition, some insurers provide access to professional consultation on topics like ethics, malpractice avoidance, client relationships and firm management.
