If you are operating on your own as an independent accountant, you need to be able to cover your own liability in the event of mistakes or errors. You also need to be able to protect your entire firm if you happen to be successful enough to grow your practice into a company that employs other accountants beneath you. The types of coverage you need will change as your career expands, but your go-to source for insurance should be the same, because specialized accountants’ liability insurance is needed for protection in both circumstances.
How to Find the Coverage You Need
Your needs will vary according to the exact nature of your accounting work, but you can count on an experienced underwriter to be able advise you when it comes down to which forms of coverage you need and how much of it you should carry. When you contact an established underwriter for professional insurance, they weigh a few factors when they make your quote:
- Firm size, in number of employees
- Yearly volume of business
- Maximum account size
Once all of those things have been considered, your accountants’ professional liability insurance will ensure you are able to protect yourself and your clients in the event of an unfortunate oversight or other record-keeping error.