As an accountant, you may not worry about the prospect of having to face liability issues. Yet claims involving errors and omissions in bookkeeping happen all the time. Luckily, your firm is equipped to properly handle such claims thanks to the help of your accountant professional liability insurance provider.
Most accounting firms worry that if they try to work through such claims, the negative exposure that they receive may drive other current and potential clients away. Thus, they may think that offering a settlement up front is the best course of action. However, such an offering may be viewed by the claimant and the public as an admission of guilt.
What to Do
Instead, it’s recommended that you take the following steps when faced with a liability claim:
- Make no offers to the claimant before talking with your agent.
- Immediately report the claim as per your insurance company’s policies.
- Contact your attorney. If you haven’t yet retained legal counsel, ask your insurance agent for a list of legal firms in your area that handle cases related to your practice.
Your handling of a liability claim immediately after it’s been filed can often determine the success or failure of the case being made against you. Always remember to avoid panic. The temptation to resolve such an issue through an abrupt settlement can quickly lead you and your firm to financial ruin. By listening to the advice given by your accountant professional liability insurance agent, your chances of successfully resolving such an issue increase dramatically.