A self-employed accountant or accounting firm will need a chartered accountant insurance for protection. This insurance coverage will take care of the physical assets and their services that can possibly face liabilities, especially when people are involved. It is of great importance to this business that they stay protected always. The severity of the damage may affect their reputation, finances and survival. This article will enlighten the importance of accountancy insurance to those offering accounting services.
Types of Accounting Liability Insurance
If you work for an accounting firm, the entire business will need to secure a chartered accountant insurance to protect everyone from possible liabilities. The complainant can be someone from the public, a professional, or someone who finds fault in your product. Adequate insurance coverage is needed to pay for all liabilities caused by them. It will also make the accountant safe and secure knowing there is insurance to back them up:
- General Liability: This insurance will protect the owner from claims of liability due to physical injury or property damage, or when there is employee negligence while doing business. It can cover the entire medical expenses should there be injuries of a specific individual. It will also protect from claims of damage to a third party’s property.
- Professional Liability: As a chartered accountant or any professional offering their services for a price, you can possibly face professional liability from time to time. Mistakes happen; however, a chartered accountant insurance can protect you from possible loss of data or claims regarding malpractice. Litigation costs can run so expensive that you need appropriate insurance to handle all expenses.
- Product Liability: If a certain person gets injured due to a defective product you have manufactured or sold, that person can file a lawsuit against you. Product liability will handle all of the compensation claims and other inconveniences that your products may have failed to achieve.
To know how to obtain chartered accountant insurance, you need to check reputable insurance companies on the Internet that offer this product to professionals like you. Note that you have so many responsibilities; and if you fail to perform your duties, chances are you can face lawsuits. This insurance coverage will protect you from losing your job, reputation and license.