Accounting professionals at small accounting firms may consider themselves safe from harmful client- made claims. While it is true that large accounting firms are more prone to claims, small firms should not get too complacent about their safety. Any business could be the target of a claim, and therefore every firm could benefit from having accountant professional liability insurance.
The Danger of Remaining Unprotected
Once a claim is made, it does not take long for the situation to snowball and start racking up legal expenses. Even if a firm is completely innocent, it is still required to spend money on defense attorneys and other court fees. Professional liability insurance covers part or all of a firms legal expenses, ensuring that the business remains financially stable. With lawsuits costing anywhere from thousands to millions of dollars, few firms could afford to go completely unprotected.
Comprehensive Insurance Policies
Insurance policies are designed to meet a clients need. There are policies specifically designated for small firms as well as policies crafted for larger ones. Insurance companies thoroughly examine a firms exposures to determine the most effective form of protection. In using policies tailored to their needs, accounting firms are comprehensively protected from financial harm.
Accounting firms provide a range of services to clients, and this makes them vulnerable to legal claims. To avoid financial decimation and keep their reputations intact, firms are advised to acquire accountant professional liability insurance.