Everything will entail a certain amount of risk. If you had to offer professional advice or service to a customer, the risk involved can be greater and the consequence more severe than what you have ever imagined. Unfortunately, with the accountants’ nature of business, they can be vulnerable to mistakes or mishandling. This then is when they need an accountant professional indemnity insurance to mitigate the risks. So, if you’re an accountant and is considering this insurance type, you need to remember three important things, such as:
What Professional Indemnity Insurance Is?
Professional indemnity insurance is widely needed by professionals like accountants, architects, surveyors and solicitors. It can provide coverage whenever they are liable for errors done in their advice or while carrying out a service. The accountant professional indemnity insurance is necessary if their client will suffer financial loss and will need a cover for such loss. This is a typical strategy among professionals for protection against possible litigation.
What Are Covered in the Professional Indemnity Insurance?
As mentioned above, accountants are the most vulnerable to errors and miscalculations. If this will happen, your clients will certainly look at you for reimbursement or even prompt for lawsuits. Whatever the reason and how the client plans to solve the issue, the professional indemnity claim will help you in times of need. The services you render are all covered by the accountant professional indemnity insurance for protection.
Is It Necessary to Have This Insurance?
A reputed and reliable accountant may have no need of indemnity insurance. However, there are certain professional accounting bodies that require their members to have the cover. If you’re a holder of practicing certificates, auditing certificates, insolvency licences or investment business certificates, you should have a minimal level of cover. To get a substantial amount, have your annual income calculated for the insurance cover.
So, How Can You Be Helped?
To work as an accountant is the best career opportunity to possess unless it includes some risk. If you secure an accountant professional indemnity insurance, you make yourself have peace of mind and solve problems before you help your clients. To secure this insurance, you need to look around and see credible and reputed insurance providers, that can stand by you in times of need, so you have full protection.