What is the purpose of the existence of insurance companies? They are a kind of safety net that protects individuals and businesses from any risk that may arise. There are several types of insurance, such as life insurance, health insurance, accident insurance, property insurance, travel insurance, liability insurance, cargo insurance, and the like. And we all at some point in our lives have needed to use these types of services offered by insurance companies. At least once in our lives, we have needed to use travel insurance when traveling somewhere in or out of the country. However, accidents happen all the time and we need to be prepared for any situation.
In today’s text, we will focus more on one type of insurance and will pay more and special attention to one type of insurance. It is about professional liability insurance.
What is this about?
Source: strategic-insurance.com
If you have a company that offers professional services, this type of insurance is just for you. We know that anyone can make a mistake. So if you say you have a law firm, accounting firm, or similar type of business offering services to citizens, you now have the opportunity to protect your employees as well as your business by using professional liability insurance. This form of insurance offers you complete protection of you and your employees in the event of any error in the performance of professional services.
Should accountants have this type of insurance?
Source: professionalindemnity.co.uk
The short answer to this question is, of course, yes. And now in addition to a few reasons, we will explain why it is so necessary, and if you are an accountant why you should immediately apply for such insurance.
- The first reason you have to own it is that it is expected of you. An accountant who has professional liability insurance means that he is a responsible person in every possible field. Although he is aware that it is possible to make a mistake that will harm other parties and himself, he still takes premature measures.
- Just signing a contract with customers is not enough. Before starting to perform their services in practice, accountants make an agreement with their clients which lists all the conditions for future work while their cooperation lasts. However, these agreements are not enough, because they can only protect them from a legal point of view if a lawsuit arises. Therefore, these contracts do not offer sufficient protection to the accountant and the company he works for, so additional security is needed. Such as security in the form of professional liability insurance.
- Clients have the right to request legal assistance if they are not satisfied with the services offered by accounting firms. If the client thinks that the accountant is taking actions that will harm him, he has the right to file a lawsuit against the accountant or through the company he represents. If the accountant makes a mistake or acts in a way that does not satisfy the client, he should be prepared, ie have insurance that can protect him from the error and the dissatisfied client.
- It can protect your income. The lawsuits that will be filed against you or the company you represent will take a lot of your time and cost you a lot of money. During the trial, you will not be able to perform your job responsibilities, which will mean a reduction in the income you may receive from the operation. Insurance will be able to protect your income by covering the earnings you lost during the lawsuit.
- It can protect your reputation and cover the agreement that has been made. If any mistake is made by the accountant in his work, he as a result of that mistake in the future may make a problem with its reputation. But here’s the insurance that gives signs that you are ready to defend your reputation and preserve your built-in reputation with the help of your hard work. But also, if the lawsuit results in a settlement, the insurance will fully cover this part of the agreement between the two parties.
Source: johnheath.com
Many accountants are interested in how much this type of insurance costs. However, the price is not fixed and it may depend on a number of factors. Such as how many clients do you offer your services to, how long have you been working in this field, have there been any claims against you before. In order to make the ideal policy for you, it will be necessary to evaluate your entire career, along with all the mistakes you have made so far. To keep costs to a minimum, you must have a perfect career with as few claims as possible. And if you are part of a professional association you will have the opportunity to make a good deal, because insurance companies offer benefits if it is a group policy.
If you do not have professional liability insurance, now is the time to get covered. To avoid a situation where due to the mistakes you have made to get a lawsuit from the client, you can prevent this with just one step. And that step is to have an insurance policy. Fortunately, we have the right place where you can get maximum coverage. ApolloCover offers the most affordable professional liability insurance available for accountants. With their policies, you will be free to fulfill your professional services without fear of harming the client in any way and he will be forced to initiate legal proceedings against you. Everything that will cost you $ 18.15 per month, and be honest this is a great price because you will get a complete service. So do not think too much and grab this great deal. Just a few steps separate you from owning it because you have a unique chance to fill out the application online.
Make the right decision and apply immediately. You will succeed in maintaining a professional standard in the job position and in the profession you are engaged in.
