When you operate your own accounting firm, you have freedom that is unlike that provided by any other position in the industry. You also have responsibility, though, and that responsibility means you need insurance that covers liability in accounting. Professional insurance covers you and your firm against errors and mistakes, including actions taken on your behalf by your employees. If you get comprehensive enough coverage, you can even protect yourself against prior actions by your employees before they came to work for you and against embezzlement.
Finding the Right Accounting Insurance
When you contact an underwriter about this kind of professional liability insurance, there are a few factors that affect the coverage you need and the cost of your premium:
- The volume of business you conduct each year
- The size of your largest account
- The number of employees at your firm
- Where you operate geographically
When you work with an insurer who really understands liability in accounting, you have the opportunity to get quotes that better reflect the day to day operation of your business, beyond these four major factors. You also have the ability to tap that resource for advice about when you should try to get more insurance and how you can best protect yourself and your clients.