Certified Public Accountants or CPA play an important role in the finances of a company. Your job as an accountant is to handle the highly critical issues of your client’s business, thus you need to generate relevant reports and tax returns. If you make a liable mistake, it can greatly affect everyone. It may even have you and your client liable to the government. To ensure some protection against the litigation, the accountant professional indemnity insurance will serve helpful for all accountants.
When Do Accountants Need this Coverage?
As the job of an accountant entails liability risks especially when preparing reports and tax returns, a liability insurance can help him if he undergoes financial devastation after a lawsuit has been filed. The accountant’s most important resource is his clients. He may have worked hard to provide them with high quality service and advice, without anticipating mistakes to be possibly made. As people’s finances are crucial to one’s business, the mistake can extremely be costly, especially for those parties involved.
Possible Exposures and Risks
You may need accountant professional liability insurance to ensure that no gaps are included in the coverage. You may want to discuss with a certified insurer about the following:
- Computers and media coverage: Also known as the EDP insurance, it will include loss of data or income due to theft, viruses, malware or vandalism in your computer or network. It can also cover loss of software, data and physical damage to the hardware or computer.
- Cyber liability insurance: It will cover the accountant in the event of data breach in your company. It will cover the expenses for informing affected clients and costs related to forensics, public relations and more.
- Valuable papers coverage: You’ll be able to reproduce damaged paper documents and move records or provide temporary storage for bank statements, financial statements, ledgers and other confidential records if they have been jeopardized.
Where to Find Tailored Accountant Insurance
As you are a trusted adviser of your clients, you too need professional advisers who can help you perform your business. You can search online for a trusted insurance agent who will work closely with you as you learn about possible exposures and the right policies that will suit your needs. Get quotes for accountant professional indemnity insurance, compare proposals and choose the one that really meets your needs and budget.