If you work as an accountant or tax preparer, buying insurance is a fundamental part of your business and your security. While almost all accountants buy professional indemnity coverage to cover any claims made against you as a result of any errors or omissions, there are other types of insurance you should consider as well.
Here, we explain the different types of insurance you can buy as an accountant or accountancy firm.
Whether you work for yourself or you own an accountancy business, you need to cover your bases and make sure you protect yourself from exposure to events that could cause you serious financial stress. Read on to find out the types of insurance you could buy for your business.
#1 Professional Liability Coverage for Accountants
Perhaps the most important insurance an accountant needs to buy is professional liability coverage. It comes in many different forms and is also known as professional indemnity insurance, errors and omissions or E&O insurance.
One of the most significant risks an accountant faces is with any potential errors that are made in the reporting or records of a client’s financial data. Buying E&O coverage for your accountancy business will cover any claims that arise from mistakes or negligence in the delivery of your services to clients.
#2 General Liability Coverage for Accountants
If you visit clients or they visit you, then buying general liability coverage will give you financial protection in case of any personal injury or property damage claims. The legal expenses and settlements are covered up to your policy limits.
#3 Data Leakage Insurance for Accountancy Firms
Also known as cyber liability insurance, this is an integral insurance policy for accountants in the digital age we now live in. As an accountant, you will already understand the importance of keeping your client’s data secure; and with cybercrime on the rise, you need to ensure your business is protected in case that data is compromised.
Buying data leakage insurance offers assistance to help your business recover after a breach or cyberattack occurs. It can help you with the provision of ongoing credit monitoring services, it will help you inform all affected customers, and it can cover your legal expenses should a client decide to file a lawsuit.
#4 Commercial Property and Contents Coverage for Accountants
If you work from a commercial premise, buying property and contents coverage can give you protection for your equipment and your business files.
If you are an accountant who works from home, then you’ll need to adjust your renter’s insurance or home policy to ensure your office contents are covered. Alternatively, you can buy business personal property coverage as an addition to a general liability policy.
#5 Auto Insurance for Accountants
If you work from a single location and only use your car to commute to a fixed place of work, then you won’t need to buy auto insurance for your accountancy business. However, if you travel to clients or you use your vehicle for any other work-related reasons, you should make sure you have the right auto insurance in place.
#6 Workers Compensation Coverage
This only applies if you hire staff to work for your company. It gives you financial protection that will cover the cost of any medical treatment for your employees should they have an accident at work or suffer from a work-related illness.
If you need to get a quote for accountant’s insurance, it can be challenging and time-consuming to try and do it yourself online. With so many commercial insurance companies, and with each policy offering different levels of coverage, it can be hard to compare your accountancy insurance costs.
Instead, find a commercial insurance expert that has experience with insurance for accountants. They have a broad knowledge of the insurance market, and they can help you access the right levels of coverage for your business and make sure you get a fair price.