Accounting involves a lot of numbers and money already, so adding in the costs of lawsuits, repairs, medical bills and more can not only be a hassle, but a huge risk to everyone affected. Not having the right accountant insurance coverage can lead to financial disaster and possibly an end of the business. There are a few vital policies that any accountant would likely need, but other types should be considered and discussed with an accountant insurance company, as well, to ensure the best possible protection.
1. Professional Liability
Possibly the most important insurance police for accountants, Professional Liability covers the legal costs involved in claims of negligence and financial loss due to your actions. While this may be warranted or not, insurance can still handle the fees as long as no criminal or dishonest acts have been done by your accounting business.
2. Business Insurance
This type of coverage is beneficial to nearly any business. This insurance tends to include three different policies in one:
3. Cyber Liability
A great deal of information is now stored digitally. In the case of accountants, a lot of the information collected from clients is incredibly sensitive, including personal information and financial records. If there were to be a data breach or some sort of digital issue, cyber liability would be needed in order to cover the costs involved in handling the situation.