If you've chosen accounting as your profession, chances are that you love numbers. But that doesn't mean that they won't bite you back every once in a while.
Everyone makes mistakes, but for accountants those mistakes can be far more costly than they are for other professionals. If you forget to carry the one or accidentally overlook a row of numbers, your business could be finished before it even gets started. This is why professional insurance is so vital for you.
Here is a guide to the types of business insurance you should consider.
Professional indemnity (also called “professional liability" or “errors and omissions (E&O)"). This kind of coverage will be on your side in the unfortunate event that you make an accounting error when crunching numbers or inadvertently advise a client to act in a way that does not result in favourable returns. This insurance will also protect you from lost or misplaced data claims, which means that if you mistakenly lose important and/or confidential data regarding a client, your insurance will help you recover the financial losses associated with the incident.
Professional indemnity will cover any monetary damages that the court finds you liable for, as well as the cost of your court fees and the money that you missed out on because you were tied up in a law suit. This coverage can also be a tool in reassuring your patrons that they are in good hands, and many of them will ask if you have it before they agree to work with you.
Business Owner's Insurance. If you are the head of a business that offers financial services, you will also want to consider business owner's insurance to cover all aspects of your enterprise. One of the great things about working in accounting is that you face little risk of being involved in a physical accident (unlike other professions such as construction or photography, for example). This reduced risk can put you in a good position to find all the other kinds of insurance you need in a combined policy that can be tailored to fit your enterprise. A business owner's policy can include coverage for the following areas:
Property Insurance. This coverage will protect your investment in your office or place of work in case of a disaster such as a fire or flood. Property insurance is not mandatory but is generally seen as a wise investment; keep in mind that if your place of business does sustain major damage, you will need to secure another location to work out of or else you will lose income.
Public Liability. Public liability coverage will come in handy if you or one of your employees is involved in a physical accident that causes a member of the public to be injured or causes damage to property owned by someone else. Public liability insurance with ConstructaQuote usually covers legal fees, medical expenses, and any costs associated with repairs to property.
Learning about these kinds of insurance is just the tip of the iceberg. To get more information, such as business insurance quotes and recommended coverage limits, you should talk with a business insurance professional.