As a niche accountant, you might face unique challenges that baffle many insurance companies. In accounting, for insurance to be effective, it must be tailor-made to your specific practices. This can, unfortunately, lead to various undesirable policy characteristics for small or medium accounting firms:
- High retentions
- Unrealistic revenue requirements
- Limited areas of practice covered
- Inconvenient coverage limits
Your clients depend on you to perform all the accounting services they require, but doing so without accounting for insurance issues is often an invitation for disaster. Mutual trust between you and your clients is one thing, but the fact remains that accountants, tax preparers and other similar professionals are often among the first to be blamed when something goes amiss financially in a company’s records.
An Elegant Solution
The solution to these common inefficiencies is to find a firm that is able to support you without requiring extra resources from your organization. There are many examples of established insurance companies that service firms with annual revenue under $3 million. Getting started is often as simple as approaching these companies with a list of the services you offer and a description of the industry you serve.
It is also typically a good idea to engage a company with whom you can grow. This is especially true if you perform specialty growth-industry accounting: For insurance, scalability is important.