Accounting insurance protects accountants and accounting firms against risks or uncertainties in the financial world. The insurance protects accountants, bookkeepers, financial advisers, and financial-related business owners. A business owner’s policy combines several basic coverage’s to offer the protection your business needs.
Some of the risks faced by accountants include
- Failure to detect financial irregularities
- Data breach or leak
- Claims of negligence
- Employee-related claims.
Cost of Accounting Insurance
The standard cost of general liability insurance depends on the location, services offered, experience, and payroll.
Types of Insurance needed by Accountants
Having a Business Owner’s Policy is crucial as it covers the following three areas.
Business Liability Insurance
Business liability insurance protects an accounting firm against third-party injury claims and property damage.
For example, a client who can be coming for a consult can fall and get injured. The insurance covers the medical cost. This policy can also cover damages that come from allegations of libel or slander.
Business Income Insurance
This insurance covers you as the business owner by cushioning you in case of loss of income. In the event of damage to your property that affects the daily operations, the insurance offers compensation for the lost revenue.
Business Property Insurance
The policy protects your business and the contents inside from damage caused by fire, theft, or vandalism, whether the premise is owned or leased.
Other accounting insurance coverage that your insurer will recommend include
Errors and Omissions Coverage (E&O) The policy offers coverage omissions, actual or alleged errors. For example, an error caused while preparing a client’s taxes. It covers all the related costs arising from the incident. It includes legal fees, defense costs. Settlements from the lawsuits
Data Breach Coverage
Your accounting business may be a target of cyber-crime. A data breach policy protects you from liability claims should there be a data breach or leak.
Commercial Auto Insurance
It provides coverage for vehicles owned by the business in case of an accident or damage. The policy covers damages as well as medical expenses.
In the event an employee is involved in an accident, the policy covers all the related costs.
The policy provides benefits to employees in case of a work-related injury. It is mandatory in most states and covers medical bills, lost wages, legal fees, and funeral expenses.