Do you work at a successful accounting firm, and are you considering upgrading or augmenting your current liability coverage? If yes, then you probably know that an error or oversight at the wrong place and time can turn into a major liability for your operation, legally and in terms of reputation. Now you know what you need, it’s time to look over your alternatives. Accountants liability insurance comes at a couple of different scales for different types of businesses.
High-revenue firms taking in well over 20 million per year need a specific type of coverage to meet the demands of their clients. It’s a fact of doing business that scandals uncovered by audits and accounting are often unfortunately blamed on the messenger. In this context, that means that major firms need the ability to address these liabilities by a method outside of legal proceedings, such as by holding accountants liability insurance with adequate coverage.
Even the smallest firms can be exposed to risks that involve questions of audit independence. Accountants are meant to be impartial and often are. The problem with independence is sometimes in the perception rather than the practice. That’s why this is an important item in most accounting insurance policies.
There are some concerns unique to small businesses, just as some risks are only present for large firms. Deciding what type of coverage you need might take more than just looking at the revenue numbers, so talk to an agent if you have any questions.