YOU ASK:

Do I need accountants’ professional liability insurance?

WE ANSWER:

If you are an accountant, you have the legal responsibility of providing correct and precise accounting services to the clients you work for. Even the slightest mistake can result in a company's financial imbalance and thus make you liable for negligence.

We all know that people err therefore it is not always possible to prevent mistakes. But what you can do is minimize the negative consequences of these mistakes. One way to achieve that is by purchasing specialized accountants' professional liability insurance.

Characteristics of Accountants' Professional Liability Insurance

The policy is specifically designed for accounting professionals, whose duties include the important task of running different companies' books, preparing yearly reports, filing tax declarations and other operations the precision of which is crucial to a company's compliance with federal laws.

The professional liability insurance policy specifically designed for accountants can be found in the form of an errors and omissions insurance policy. It provides insurance protection against professional liability to specialists whose duties involve a high degree of legal care for others.

In an errors and omissions policy, the insurance provider agrees to pay any professional liability compensation amounts on behalf of the insured up to the policy limits specified in the insuring agreement. In addition to this, an accountants' professional liability insurance policy covers the legal defense costs of the insured in a liability lawsuit.

Apart from accountants, other professionals who can buy errors and omissions insurance include engineers, different brokers, agents and consultants, lawyers, architects and other occupations that are exposed to a high risk of being sued for professional negligence.

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