For many firms, professional Indemnity Insurance is generally not a legal requirement. Rather, any profession who offers professional services to clients needs it. This type of insurance affords protection to you, your business and even your clients. Although professional Indemnity Insurance is vital to any business that provides any kind of service, it is more crucial for certain lines of trade to acquire it than others. Surveyors, lawyers and financial advisers such as accountants especially are the ones most in need of it. Times are changing and advancement of certain industries is necessitating this form of insurance for new business-types. Even individuals involved in internet business and e-commerce for instance are finding it necessary to acquire this coverage offered through insurance policies. Accountant professional indemnity insurance is one of the types that are easy to acquire, which makes it easy for any kind of accountant to have it.
Business Injury Risk
Business injury has turned out to be a very popular claim in particular in matters relating to business faults. It generally happens when an individual or business has been negligent, made an omission or error in providing services that resulted in losses for the service-recipient. Accountants make for great examples as to understanding the vital nature of professional indemnity insurance as a strategy for managing business risks.
Risks in Accounting
Accountants provide a service to the public, which involves keeping, monitoring, updating as well as auditing of financial records and handling their financial records or tax reports. A client can experience major financial downfall if an accountant for instance ended up making a minor error in their reporting. Whether the error happened by omission or accident, the professional would still be liable legally for the loss suffered by the client. Having accountant professional indemnity insurance in such situations affords coverage to the professional. As well, the insurance company handles the settlement, thus setting the accountant free to continue offering services to the public as usual. This type of insurance has been known to save accountants a lot of money and time when they do commit such errors.
Accountants normally keep certain records that are highly confidential within their offices. Professional indemnity insurance also comes in handy in providing them a discount for rendering good security services. In addition, it offers them coverage in case of document-theft. This is especially essential to accountants in relation to issues of privacy when documents go missing. Accountant professional indemnity insurance covers defense costs along with legal expenses that may be required in the event of theft, losing documents and such legal incidences. Accountants invest in a significant deal of accessories and equipment which remain within their office building. Any standard insurance of this kind should be able to cover all such instances.
This type of insurance is essential for accounting practitioners, but could be vital to any other professional and industry too. Acquiring professional indemnity insurance can afford a business essential protection from prosecution and having to offset losses suffered by its clientele at a sensitive time in its operations.