When working as an accountant, clients put their financial wellbeing in your hands. This is a great deal of pressure and comes with numerous risks. Even just small mistakes in your math, organization, explanations, etc. can lead to a devastating loss for whoever is involved. If a client makes a legal claim that something you did led to them losing money, it can cost you greatly. This is why accountant professional liability insurance is one of the most important types of insurance when working in the financial field.
What Is Professional Liability?
Also known as Errors and Omissions (E&O), professional liability insurance is able to protect a business from the legal fees for claims involving professional acts of wrongdoing. This includes claims of negligence, malpractice, breach of duty, poor advice, and general mishaps while providing professional services. It is vital to acquire accountant professional liability insurance, as small actions can lead to large problems. Some clients may even falsely accuse you of misconduct, such as claiming you or an employee didn’t explain things well enough when they didn’t follow your advice. Professional liability insurance can cover in these cases, as well. As long as your accountant services haven’t involved anything criminal or dishonest, whether the claim is merited or not won’t matter when it comes to insurance coverage.