Accountants Malpractice Insurance

Accountants Malpractice Insurance Information

Accountants and their companies play critical roles in monitoring, managing and securing the financial interests of their clients. These professionals are entrusted to provide accurate, dependable and timely services and deliver reliable guidance. However, even the most diligent and experienced accountants may eventually make a mistake or miscalculation, and lacking adequate insurance could incur significant financial consequences.

What Is Accountants Malpractice Insurance?

In many cases, accountants professional liability insurance may not be a named product available from all insurance companies. Rather, qualified providers, such as L Squared Insurance Agency, may be able to help these professionals tailor a professional liability insurance policy to suit their unique needs and circumstances. Regardless of how such coverage is acquired, professional liability for accountants should be considered an essential loss control measure.

How Does Malpractice Insurance Work?

Also known as errors and omissions insurance, professional liability insurance can establish a financial shield for policyholders if they make mistakes amid their professional services. For instance, if a client or customer accuses an accountant of making an error from which they accrue financial losses, they may file a lawsuit to help cover their own damages. In this case, professional liability insurance may help the accountant pay for various costs, such as legal representation, settlements and court-ordered judgments.

Although the exact details of these policies may vary, accountants professional liability insurance may include coverage for losses stemming from the following allegations:

• Professional errors
• Inaccurate advice
• Negligence
• Misrepresentation
• Omissions
• Oversights
• Missed deadlines
• Breach of contract

How Much Does Accountants Malpractice Insurance Cost?

When providing accountants with a professional liability insurance quote for adequate coverage, insurance companies must weigh several factors, such as the following:

• Annual revenue
• Employee training measures
• Number of clients
• Location
• Prior claims history
• Coverage limits