Five Ways to Protect Your Accounting, Tax Preparation, or Finance Business
Besides making sure your accounting, tax preparation, or finance firm has adequate
6 Costly Business Protection Myths for Accountants, Tax Preparers, & Finance Professionals
Accountants, tax preparers, and finance professionals who
Accountants, Tax Preparers, & Finance Professionals: 7 Things to Know Before Purchasing Insurance
No two business insurance plans are the same—nor
We offer a variety of insurance coverage types specifically designed for professionals in accounting, tax preparation, and finance.
General Liability Insurance for Accountants, Tax Preparers, and Finance ProfessionalsIn the unlikely event that a third party should claim that you or one of your employees caused them physical injury or damaged their property, you could be facing an expensive litigation process. General Liability Insurance can help you manage these claims by paying for your legal defense, including reimbursement fees and lost income compensation.
We are aware that most tax preparers, finance professionals, and accountants are exposed to relatively few physical dangers on the job, but regardless, many companies and client contracts require that accountants carry General Liability Insurance to reduce their own amount of financial risk.
Because we understand that your risk exposures are minor, we offer a discounted package policy called a Business Owners’ Policy (BOP) which includes property insurance and General Liability coverage. Consult with your agent to see if you and your small business qualify.
Professional Liability Insurance/ Errors & Omissions Coverage for Accountants, Tax Preparers, and Finance ProfessionalsAn accounting mistake can cause significant and costly complications for your clients, which may lead to a lawsuit. If this happens, legal costs can increase rapidly. Bookkeeping or accounting malpractice risk is a very important reason why every tax preparer, accountant, and finance professional needs professional liability coverage.
Errors and Omissions Insurance covers you and your tax preparation, finance, or accounting business if one of your clients claims that your work caused them a financial detriment. Examples may include failing to file a return on time or making technical errors. If a lawsuit begins, you will be spending a good deal of time and money on your legal defense.
Professional Liability Insurance pays for your legal defense, any income lost due to your inability to work, and other specified costs. If you are legally required to compensate for losses, your Professional Liability Insurance will cover that award as well.
Errors and Omissions Insurance policies are generally doled out in allotments of $1 million with deductibles starting at $1,000. Coverage must be in force when any alleged incident occurs and also at the time the claim is filed in order for a covered party to collect benefits. As a result, we advise our clients to keep their policy in force even after an engagement is finished.
Workers’ Compensation Insurance for Accountants, Tax Preparers, and Finance ProfessionalsYou may need Workers’ Compensation Insurance to cover any employees in the event of an injury on the job or suffer a work-related illness. Workers’ Compensation Insurance pays for employees’ medical expenses and accounts for some of their lost wages. As the business owner, you can also cover yourself for any injuries or illnesses sustained on the job.
Even though the risks of on-the-job injuries are typically low for tax preparers, finance professionals, and accountants, most states mandate some level of Workers’ Comp coverage for your business. Be sure to check your state’s requirements. Some state directives may depend on the number of employees in the business, and in some instances you may even need to include independent contractors in your Workers’ Compensation package.
Our insurance experts who specialize in accountants, finance professionals, and tax preparers can help you find information about Workers’ Compensation Insurance requirements within your state. Consult with one of our agents today!
Property Insurance / Business Owner’s Policy (BOP) for Accountants, Tax Preparers, and Finance ProfessionalsAs a finance professional, you have a low probability of facing a dangerous work situation. Because accounting, tax preparation, and other finance professions come with relatively low risks, you will likely meet our criteria for a cost-saving, comprehensive policy that consists of a General Liability policy and Property Insurance. This is our Business Owner’s Package, or BOP.
The BOP is designed specifically to give you peace of mind: it can even cover for lost income, should a claim negatively impact your ability to earn revenue.
Umbrella Insurance / Excess Liability Coverage for Accountants, Tax Preparers, and Finance ProfessionalsAn Umbrella Insurance policy is an easy way to boost coverage levels to meet client contract demands. Umbrella Insurance adds coverage to your existing General Liability Insurance policy.
For example, if your contract requires $500,000 in General Liability coverage, but your policy limit is $250,000, purchasing Excess Liability or Umbrella coverage will cover the additional amount.
Even if your client does not require you to have high coverage limits, it is a good idea to analyze the potential risk exposure your finance, tax preparation, or accounting business faces in order to insure your business adequately. You and your agent might find that your current coverage plan might not be enough. Our insurance experts who specialize in tax preparation, accounting, and related finance fields can help you analyze how much insurance your business needs.
- The best way to avoid a professional liability suit is by preventing errors.
Errors are more likely to happen when you are spreading your resources too thin. You can avoid these errors and a potential professional liability suit by referring appropriate clients to trusted a associate; when you do, be sure to secure a written agreement clearing you from any professional liability responsibility should the client be unhappy with the referral’s work.
- Before you sign a contract, have a written agreement with your client about their obligations.
If your client is missing important information, it could keep you from completing a project or doing your best work. Be sure to have a written agreement with your client detailing exactly what you need from him or her in order to complete the project. This way, if a client fails to give you the information you need, you are free from responsibility about meeting project expectations.
- Provide a written timetable for your client and try to stick to it.
We know that as tax season rolls around, accountants, tax preparers, and other finance professionals can become inundated with projects and requests. Give your clients a clear timeline before you begin a project so that they clearly understand when their project will be finished. In this way, way you can refer to the timeline should they try to push you to move more quickly than you are comfortable with.