Clients often work with accountants to avoid legal issues, but mistakes happen. Even if you know you’re not responsible for the issue your client claims, do you have the money to prove your innocence in court? Regardless of how confident you are in your own abilities, an insurance policy can help after mistakes and client discontent. If you are a practicing CPA, you should consider malpractice insurance for accountants.
Malpractice insurance may also be called E&O (errors and omissions) insurance. In order to be certain of your coverage, you should work with an insurance agency that has personal experience within your industry. Otherwise, you may be left exposed to certain risks you weren’t aware of. You could also wind up with a policy that has a smaller limit than you need. The right policy can cover court costs and help protect your assets in the event of a claim. Remember, even if you’re not held responsible, your reputation could be damaged, ultimately harming your business. The right insurance agency can help you make a plain to avoid claims, but make sure you understand the process for contacting the agency if you need it.
No one wants to think about making errors or having to show up in court, but malpractice insurance for accountants can give you stronger peace of mind.