An accountant’s job is to manage other people’s money. They must keep very accurate records. They have to provide detailed reports.
Nevertheless, they are running a business. As a result, they must have adequate business insurance. This insurance helps avoid financial loss from unavoidable accidents. It can also help with liability claims. For an accountant, it may not seem like many risks exist. That is not the case.
What Insurance Does an Accountant Need?
Here is a list of the types of business insurance that are ideal for accountants. Discuss your current insurance with your agent. Update your policy to better match your needs. Stay updated on new coverage. Discuss any claims thoroughly when they occur.
BOP: A business owner’s policy provides a basic, standardized level of coverage. It usually protects the company’s possessions and assets. It helps to provide some amount of general liability coverage as well. Some forms of BOP can also help with business income protection. BOP helps companies save money. It wraps the most common coverage types into one plan. However, before you get a BOP, make sure it will offer adequate protection for your risks.
Professional Liability Insurance: It is also called errors and omissions. Accountants need this coverage. It helps to cover costs related to advice you provide that leads to loss. You could face a lawsuit if you make an accounting error, for example.
Computer and Data Breach: Most accountants operate their business online. Many do so in the cloud. There is the risk that a third party could breach your clients’ personal information. When this occurs, your business could be liable.
Accounts Receivable: Most accounts bill months after providing a service. When clients fail to make payment, it can be a financial hardship for the company. Accounts receivable coverage can reduce some of those losses.
Employee Dishonesty: Accountants with employees may wish to choose this coverage. An employee may steal from a client. Personal information is at risk. This plan minimizes that risk.
Vehicle Coverage: Some accountants drive from one client to the next. This warrants commercial auto insurance or vehicle coverage. Non-owned auto coverage is another option.
Employee Practices Liability: This type of coverage protects the employer from claims made by employees. This can include claims of discrimination or harassment. Employees make these claims against their employer. It can also involve claims of failure to promote.
Finding the right business insurance means speaking to your agent. Accountants need to have ample financial protection in place. A single claim can be very costly. Without coverage, your business may face lawsuits. Avoid this with business insurance designed for your company.
Pfenninger, Claxton, & Estelle Insurance Group has your insurance needs in mind. One of our agents can help you get a Muncie IN business insurance quote right now. Call us at 317.398.9797 for more information.