Your clients choose you because they trust you. As an accountant, you are responsible for managing your client’s financial matters as well as in providing them with valuable advice. You carry a huge responsibility in your hand. But what if you’ve made some mistakes in calculating the figures, then this could affect your client’s business.
Even how meticulous you are in checking your client’s accounts, mistakes can happen anytime. Hence, it is only significant that you take out the right accountants professional indemnity insurance in the event that somebody will file a claim against you.
Accountants professional indemnity insurance policy can also protect bookkeepers, tax consultants, as well as payroll professionals. It can help you pay for the cost of defending or settling a claim in case your client found an issue with the work that you’ve done for them. Regardless if it was just a simple miscalculation or typing error but this could lead to expensive claims in case your client will be fined for providing the wrong information. Eventually, your client will sue your negligence.
What is an Accountants Professional Indemnity insurance?
Accountants Professional Indemnity insurance can protect you in case your client or a member of the public is not satisfied with the service or advice that you provide. Being their accountant, you will be responsible for paying the legal costs and compensation in case they decide to make a claim due to their financial loss. Additionally, accountants can also be sued for breach of contract and negligence. For instance, if you are misleading your clients in regards to consumer protection laws.
Professional Indemnity insurance for accountants can protect you, your business, as well as your employees against claims.
Why do accountants need professional indemnity insurance?
Typically, professional indemnity insurance is a legal requirement for practicing Accountants. It is essential for accountants to take out this type of insurance since it can provide you financial protection in case your clients will file claims against you. Perhaps this is due to your mistakes or negligence which resulted in financial losses.
Accountants provide a variety of services to their clients including taxation, auditing, corporate finance, general consultancy, etc. As an accountant, you must be very careful and competent in performing your job. In case you were negligent in your work, then professional indemnity insurance can pay for the legal fees as well as for the damages.
Some clients will not work with accountants who do not have proof of their professional indemnity insurance. Be sure that your policy can meet the requirements of Association of Chartered Certified Accountants (ACCA), Institute of Certified Bookkeepers (ICB), Institute of Chartered Accountants of England and Wales (ICAEW), and International Association of Bookkeepers (ICAB).
Why accountants need a flexible cover?
It is a fact that not all accountants are the same. Regardless if you have a large corporation or you are only a sole trader, it is vital to get the precise policy for your needs.
What other covers should you include in your accountants’ insurance?
Aside from worrying about your client’s dispute, you should also think about the other things that can create a great impact on your business activities. For instance, what if your laptop is stolen or your premises is flooded. When this happens, it would be harder for you to continue with your work or complete your present jobs.
When an unfortunate event such as fire or flood will occur in your premises, then buildings insurance can pay for the cost of repairing the damages and even for its reconstruction. It can even cover the removal of the wreckage as well as the architect’s fees.
It is vital to include business equipment insurance in your accountants’ insurance package. With an office contents insurance policy, your business equipment can be covered in case they get lost, stolen, or damaged. It can even pay for its replacement in case your equipment cannot be repaired anymore.
There is also a variety of specialist covers that you can include in your policy such as business interruption, portable equipment, and equipment breakdown. Business interruption can cover your business in case you can’t continue trading due to some damage to your premises. It can cover the loss of income. Portable equipment is important for your business activities since it can protect your equipment when you brought them outside of the office. Equipment breakdown can take care of the expenses when your office equipment cannot be used due to unexpected electrical or mechanical breakdown.
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About business banking
A business bank account is essential for any business – whether you are a contractor or a large firm with thousands of employees. There are many business account options with different account features based on your specific needs, including overdraft options, online banking, free business banking and interest on in-credit balances.