Why Get Accountant’s Insurance?
Like any professional providing advice or a service accountants face their fair share of risks. Whether you own a large firm or offer accounting services on the side, carrying appropriate accountants insurance is critical to reducing your financial risk exposure and ensuring the success of your business.
Accountant’s Insurance Claims Examples
Property Damage
Incident: A fire breaks out at your office location. The resulting damage is $50,000 in office equipment. Additionally it takes 4 months to clear the debris and repair the location.
Result: Your commercial property and business interruption coverage will reimburse the cost to replace the equipment as well as pay for any extra expenses incurred by you to rent another office while it is being repaired so that you can continue operations as soon as possible.
Professional Liability
Incident: You are hired to perform professional auditing services for a client so that they can apply for a business loan from a creditor. The client ends up defaulting on their loans and files for bankruptcy. The creditors claim the accountant’s audit procedures did not comply with IFRS standards and sue for contributory negligence in the amount of $3M.
Result: The professional liability coverage on your policy will pay for legal fees and defense costs as well as damages.
Third-Party Bodily Injury
Incident: A client comes to your office for a meeting however has an incident and slips and falls due to a minor spill and poorly lit bathroom. The client decides to sue for injury in the amount of $50,000.
Result: Your commercial general liability coverage on your policy will defend you and pay for associated legal fees.
Accountant’s Insurance, Explained
Who needs accountant’s insurance?
Anyone that provides professional accounting services requires accountants insurance. Duties include but are not limited to tax filing to financial consulting and auditing.
Why do accountants need insurance?
As an accountant your role is to identify and reduce the financial risk that your clients are exposed to. You should already know that the profession carries its own inherent risk. Insurance products protect against these specific accounting services through products that cover negligence and malpractice and meet all CPA requirements.
What does accountant’s insurance cover?
- Property Coverage – Can be broken down into more specific coverages however in general will insure property and contents that you own. Examples can be business contents, office furniture and equipment.
- Business Interruption – Protects your business from financial instability by covering lost income in the event of a covered loss.
- Commercial General Liability – Protects you against third party claims of property damage or bodily injury that may occur at a job site or your own location
- Professional Liability – Protects you against third party claims of professional negligence that may occur as a result of your professional services.
Full List of Business Insurance Types
Why Choose Pacific Insurance?
Our staff are trained Registered Insurance Brokers of Ontario (RIBO) which is the self-regulatory body for insurance brokers in Ontario.
We have been regularly featured in the media as insurance experts and asked to speak at events like the ‘CRV Radio International’.
1 on 1 Service
Speak directly with an expert instead of dealing with a faceless call centre.
40+ Years in Business
We provide the results of a large agency while giving you the agility and service level of a boutique agency
Fluent in Many Languages
Speak to our brokers in English, Cantonese, Mandarin, French, Korean, or Hebrew.
