Providing a Safety Net to Accountants

The professional indemnity insurance is available to professionals across different industries. Depending on the choice of profession, the individual can opt for a suitable insurance. This also includes accountant insurance schemes that incorporates Errors and Omissions insurance, and Public & Employers Liability Insurance.

Accountant insurance is particularly important for professionals who offer accounting services to individuals or organizations. Therefore, it is useful for professionals like tax consultants, Certified Public Accountants, analysts, financial consultants, creditors, management accountants, risk analysts and financial accountants. Since such professions need a lot of precision, an individual from this field is likely to commit mistakes like errors and omissions. Moreover, the audit and tax landscape is witnessing continuous changes in the present scenario. In addition, the clients depend on such professionals for accurate reporting on financial aspects in a business. No matter how experienced and skilled an accountant or a tax consultant is, mistakes are bound to happen.

The Errors and Omissions insurance coverage would offer protection to the bookkeepers in situations where the figures have been miscalculated or any information is omitted. It may be noted that the insurance company is liable to pay for the losses no matter whose fault it is. Most of the accountant insurance policies cover settlements as well as defence costs and judgments, even in those matters where the allegations are found to be baseless. In the absence of such an insurance policy, the cost of paying court and settlement fees would leave several accountants, tax consultants and bookkeepers in debt or even bankrupt.

The insurance firms not only offer comprehensive policies to accounting professionals, but also attempt to make procedure user friendly and simple. The work of such insurers is based on the premise that in a stressful profession like accountancy, an insurer is expected to ensure that the stress of professionals is minimized.