You need a type of insurance that will ensure your protection especially that your job as an accountant entails more risks. If a client is unhappy with your advice, you, as an accountant, may be held liable and may be charged with some claims for economic loss. Accountants too are liable for breach of contract, breach or negligence of statute, such as deceptive or misleading conduct in consumer protection laws. That’s why a chartered accountant insurance should be able to protect them, their employees and business against such claims. So, if you’re offering a chartered accountant service, ensure you have insurance to back you up in times of risks.
Mind the Gap
The chartered accountant insurance will cover all aspects of your job. So, ensure you have this insurance covering all you need with your work. The level of your insurance needed depends on the size of your business and the nature of the service you provide. The fees you charge your clients will determine how much you need for the insurance coverage. You may also need insurance to cover the practitioners and staff of your business, the claims history and the industry you are in. All these have an impact on what you do with your clients.
The chartered accountant insurance may also be based on which location you are from. For instance, in Australia, ASIC will require a fidelity cover for all registered insolvency practitioners. This type of cover is not included in a regular policy, that’s why you need to ensure you are completely covered to be protected from potential financial risks. If you also work as a New Zealand auditor, a regular indemnity insurance may not be adequate for your needs.
But be aware just like other insurance, the chartered accountant insurance can possibly have an excess. This excess on your policy will determine the number of principals and fees. If you’re opting for a new chartered accounting service, always consider that you need an insurance policy for protection. You need to review all the risks involved in your practice and provide good methods to do away or handle all those risks involved in your job.