Benefits Of Getting Accountant Professional Liability Insurance
No matter how skilled you are in the accounting field, there can still be room for slight errors, whether in the performance of your job or in providing professional advice to your clients. In the unlikely event that a company you handle or a client becomes subjected to legal battle because ofyour errors or imprudence, you will also be unintentionally dragged to the legal battle. When this happens, you would have to shoulder your own legal expenses and if you are not financially ready for this, you will be encumbered or may even recourse to taking loans or borrowing money from friends just to cover the expenses. If your profession is susceptible to litigation and other legal issues, it would be wise for you to get an accountant professional liability insurance. When you have the professional insurance, you are financially ready and protected against unforeseen expenses related to defending claims and settling costs of your clients due to your errors.
An accountant professional liability insurance coveragethat you can get from one insurance company could differ from another insurance provider. But generally, here are some of the common inclusions of an accountant’s professional indemnity insurance coverage.
- Committing a professional mistake out of a wrong or bad advice. The act constitutesbreach of duty of care or negligence.
- Providing confidential or sensitive information to another party without the client’s consent. This is a violation of breach of confidence.
- Utilization of web content or publication without the author’s consent. This violation is against infringement of intellectual property rights.
- Civil liability out of job performance.
- Providing or offering wrongful or erroneous information to the client. This violates misrepresentation or negligent misstatement clause.
- Making false claims ordetrimental statements against a person or organization. This is legally considered as defamation.
The abovementioned conditions are just some of the possible inclusions of accountant professional liability insurance. You can consult an insurance firm how you can customize the coverage based on your requirement. Askyour colleagues in the industry for excellent and reputable service providers in the field.