Although CPAs may be thought of as low-risk businesses, like in any business, mistakes happen. Even the most detail-oriented accountant has to plan for the worst-case scenario. An unsatisfied client may look to challenge a tax filing or write-up work, and quickly decide to file a claim against your company. The cost of defending yourself against a lawsuit may be just as costly, if not more, than the claim itself. Having accountants liability insurance can protect you against unforeseen claims and court costs.
Who Should Protect Themselves?
Anyone who prepares and examines financial records or financial operations should consider obtaining coverage. This may include the following:
- Certified public accountants
- Tax preparers
What Size of Business Is Covered?
Whether you’re starting out your CPA business or have an established practice, accountants liability insurance is an important asset to any growing business. The following business structures can be covered:
- Small firm: Up to three accountants and annual revenues up to $400,000
- Mid-sized firm: Four or more accountants and annual revenues greater than $400,000
- Large firm: Annual billing of at least $10 million
What Are the Types of Coverage?
Mistakes aren’t one size fits all. Professional liability policies provide coverage for the following:
- Omissions or Errors
- Liability suits
- Breach of duty
- Negligent act
- Misleading statements
Accountants liability insurance is available for firms of all sizes who are committed to the integrity of their practice. Adding coverage to your business can mean fewer worries and a greater focus on growing your business.