Today's fast-paced environment makes it necessary for businesses to rely more on support services that are knowledgeable and experienced. This would apply to accounting firms as well. All businesses require insurance to protect themselves, their businesses and their clients. You also require an insurance agency that can help you wade through the many accountants professional liability insurance plans (even the title needs navigating) and other insurance products. And as an accountant you are looking for competitive prices! The long-term nature of your business practices make it essential that your insurance coverage be able to handle past work done by your current staff as well as any predecessors.
Professionals are constantly at risk for claims and lawsuits arising from their practices and services. We live in a litigious society that makes frivolous lawsuits seem common every day fare. Accountant insurance is vital to your current and future success. You don't have to have been at fault in any way for a lawsuit or claim to be filed against you or your accounting firm. The very nature of your business makes you a target for others' greed. According to the IRS 85% of returns that are audited contain errors and/or omissions. With our tax law the way that it is, it is surprising that percentage isn't higher. The extreme complexity of our tax laws makes the possibility of mistakes and misinterpretations feasible for the best accountant.You will want to consider both a general liability insurance plan and a professional liability insurance plan to cover all your bases. Most general insurance plans will include exemptions for professional services. That is why a combination will make sure that what one policy will not cover the other will. You will be in a better place to defend any claims against your accounting firm or individual accountants with the proper coverage in place.
You will want to look for an insurance company that is experienced and familiar with the world of accounting. Their insights will make all the difference in your choice of the right insurance plan. The level of coverage will be based upon your business itself. If you are insuring accountants for a large corporation you will want to have higher limits since they are more likely to be sued for higher amounts. For this very reason you will also find the premiums to be higher than for personal accountants. A good starting point for comparison shopping is $100,000 per accountant.
Make sure that the plan you decide on is the plan you want to stick with. If you change insurance companies mid-stream and a prior client sues you will not be covered by either plan. Ask about occurrence liability coverage to handle these types of claims. In order to find the right insurance plan you need to find the right insurance agent. Check with any professional associations you are currently a member of for recommendations. Ask colleagues about the agency they have written with. Take all these recommendations into consideration but always do your own homework and comparisons and always check for the insurance company's ratings.