YOU NEED TO PROTECT YOURSELF FROM LIABILITY.
After all, your clients rely on your advice, which is why accountants can be sued for fraud and negligence in performance of duties. In fact, here in the US, CPAs have both common law liability and statutory law liability.
Common law liability arises from negligence, breach of contract, and fraud. On the other hand, statutory law liability is the obligation that comes from a certain statute or a law, which is applied to society. In fact, did you know that in recent years, amounts of more than $300 million have been awarded to the damaged parties from liability suits against some of the larger CPA firms?
What would you do if you were hit with a liability suit for more than your current insurance covered?
- Certified Public Accountants (CPAs)
- Public Accountants (PAs)
- Certified Internal Auditors (CIAs)
- Certified Management Accountants (CMAs)
Accountants hold confidential client information including social security numbers and payment information
Crime liability: Employee dishonesty in regards to social security numbers, credit card information, trade secrets and other confidential information. Wise accountants take the time to do background checks before hiring and permitting any employee on the clients' premises.
Your clients count on your advice
Errors and omissions liability: No ones perfect. Mistaken advice or advice not properly acted on could come back and haunt your business.
Protect your business
Property exposure: What would happen if all of your records, computers and books were destroyed in a fire? All information should be kept in fireproof cabinets. Invest in cloud backup technology.
Inland marine exposures: Do you travel to and from book keeping clients offices carrying your laptop, receivables, valuable papers and records? First you will need inland marine coverage. Second be sure to make duplicate copies of all important information and keep them stored off site.
Premises liability exposure: Do you have clients that come to see you at your office location? Off-site exposure includes having all employees submit to background checks and having a policy / procedure manual explaining how employees are to conduct themselves off site.
Automobile liability exposure: Do you and your employees use vehicles during the performance of their work? Here are few suggestions to use. First do a motor vehicle record check on all employees before allowing them to drive company vehicles. Is there procedure / policy book for all drivers of company vehicles? Be sure to get a commercial auto policy to protect your accounting business.
Workers compensation exposure: Do you have employees performing repetitive tasks? Teach your employees how to reduce eyestrain, neck strain, carpal tunnel syndrome, and similar cumulative trauma injuries. Invest in ergonomically designed workstations. Invest in a workers comp insurance plan that will protect your employees and your business interests.
Here is the minimum recommended accountant / auditor insurance coverage:
- Business owners policy
- Business Personal Property
- Employee Dishonesty
- Accounts Receivable
- Valuable Papers and Records
- General Liability
- Employee Benefits Liability
- Professional Liability
- Errors and omissions
- Commercial Umbrella Liability
- Hired and Non ownership Auto Liability
- Workers Compensation
- Cyber insurance
Other CPA insurance coverage to consider:
- Business Income with Extra Expense
- Computer Fraud
- Money and Securities
- Special Floater
- Employment Practices Liability
- Business Auto Liability
- Physical Damage
How to get a free accountants insurance quote
We offer a complimentary CPA insurance consultation. InsuranceHub will take the time to understand your business, clients and specific industry related liabilities and challenges. Contact us today at (877) 341-5728 to schedule your free, no strings attached, accountants and auditors insurance consultation today.