Of all the professions which you probably don’t think about needing massive quantities of professional insurance, accountants are most likely near the top of your list. Just like any other business, though, accountants need to cover themselves. There are multiple kinds of insurance of which the general public isn’t normally aware to cover potential liabilities for accountants.
A liability is something for which you are responsible. In an accounting business, there are multiple responsibilities the company holds and each of those has a different insurance.
- Professional liability
- General liability
- Employment liability
- Cyber liability
Professional liability, also known as errors & omissions or professional indemnity insurance, helps professionals bear the brunt of their costs in the event they’re accused of negligence and sued in civil court. General or property liability provides coverage if someone injures him or herself on company property. When issues of wrongful termination, workplace sexual harassment or other employment violations arise, that falls under the purview of employment practices liability coverage. Finally, cyber liability covers your company’s responsibility in the event of a cyber security breach.
Still Not Enough
If you’re thinking that covers all the insurance needs your accountant has, think again. He or she still needs worker’s compensation insurance and possibly automobile insurance if there’s a company car.
The need for so much insurance explains your accountant’s fees.