It’s an unfortunate reality of providing a financial service: As a certified public accountant you’re at high risk of being sued, even if you didn’t do anything wrong. And for independent CPAs or small firms without vast resources, the stakes are even higher. The cost of defending yourself against a lawsuit can seriously hurt your financial wellbeing. The good news is that you have an option for protecting yourself: CPA professional liability insurance.
- The Basics – Known also as errors and omissions insurance, a professional liability policy protects you against claims that your services were not up to par and, in turn, caused damages to a client.
- The Benefits – Simply put, professional liability insurance will cover legal and investigative expenses related to a lawsuit, along with a settlement or judgment against you.
Paying another insurance premium may not be something you want to do. However, as a provider of a financial service, the benefits of buying CPA professional liability insurance far outweigh the cost P especially considering the damage just a single lawsuit can do to your business. And remember, you don’t actually have to do anything wrong to be sued. But if you are sued, you’ll need to defend it. Talk to an insurance professional about how you can protect yourself and your business.