As an account, you are most likely trusted by your clients. They often depend on you when it comes to their money, taxes and businesses. Along with that trust may come a lot of responsibility and with responsibility comes liability. That is why you should ensure you have the insurance coverage that protects you against lawsuits. At the very least, you should have accountants liability insurance, and you may also want to consider errors and omissions insurance.
Errors and omissions insurance helps protect you against mistakes. Even the most meticulous person may make errors sometimes. If a client accuses you of being careless with their money or their books don’t balance, an E&O policy may help you cover the cost of your defense and any damages you may owe.
Accountants liability insurance handles personal damage and property damage. It is designed to cover you against slip and falls. Typically, general liability insurance for accountants insures the company as well as the individual. Many times, companies require contracted finance professionals to carry liability insurance as an extra precaution.
As a finance professional, it is usually important to protect yourself against potential lawsuits. General liability is one of the most basic and frequently purchased insurance plans. Along with liability, you may also want to consider errors and omissions insurance. Accounts are especially susceptible to these types of claims due to the nature of your business. Assess your risks and make sure you are covered. Simply defending yourself against a claim could be potentially financially devastating.