You have to agree that when you put up your business, you cannot take all the responsibility on your own. You might need someone to manage at least one part of the business. Otherwise, you will lose focus because of all the details and varied tasks that you need to attend to.
It is also important to note that in every business, there are risks that you have to accept. It is indeed a risky endeavour. For example, for Certified Public Accountants (CPA) firms, there is a possibility of committing an error or a mistake in the tasks that were given to specific accountants. They are after all humans. So how can you protect your firm as well as your employees when these problems arise?
One way to protect your business is by providing an accountant liability insurance. Professional liability insurances are very important, especially for CPAs. This insurance covers you as well as your employees against professional liability lawsuits. Usually, this insurance offers coverage against claims of negligence and mistakes that have caused financial harm to an individual or a company. It also covers misrepresentation and even inaccurate advice. The obligation to pay damages for covered claims and the cost of defending against such claims are also being covered by this insurance.
Some companies offering this insurance even has other options such as the insurance for the associated defence costs.
Accountants can have more than one option for a plan when it comes to liability insurance. Each plan is tailored to fit the needs of accountants and CPA firms – small, midsize, and even large firms. If you decide to avail of the insurance, you may expect the following aspects in your business to be within the coverage of the insurance:
- Personal Financial Planning
- Information Technology Services
- Tax Planning and Preparation
There are also other aspects of the business that this insurance cover. Remember that when putting up a business like an accounting firm, you have to be prepared for the risks and problems that may arise. Protect your business from whatever these risks are with an accounting liability insurance and provide coverage for your business and employees.