THURSDAY, JULY 15, 2021
The accounting industry is in constant flux, with strictly regulated laws in place that frequently change. Accounting professionals must keep up with these changes in order to manage clients’ finances effectively, on top of advising clients on investment strategies. What happens if a CPA misses a new regulation or gives a client less than stellar advice? If an error leads to a client’s loss of funds, the responsible accounting professional may be facing a long and costly lawsuit.
Professional liability insurance is designed to protect you from similar incidents. If ever you’re taken to court for professional errors, omissions or negligence—whether grounded or frivolous—this coverage helps pay for the expenses that you may have been expecting. In fact, many accountants admit that it would be unwise to do business without professional liability insurance.
There are many facets of the accounting industry, including CPAs, corporate accountants, tax professionals and more. Among these professions, the highest number of professional liability claims come from tax practices, while the most expensive claims come from audit work.
Along with obtaining a professional liability insurance policy, you can also take steps to decrease the risk of a claim. Try these tips:
Have at least two professionals review contracts before giving them to clients
Discuss advice with a colleague to ensure it’s sound before sharing with a client
Inform clients of the work you will perform and when you expect to finish
Always make time to address clients’ questions or concerns upfront
Select clients who do not have a history of litigation
Ready to learn more about protecting your accounting business? Speak with your independent insurance agent today.
We’ve got you back. Call States Insurance Agency at 727-863-8818 for more information on Hudson professional liability insurance.
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