You might have heard of malpractice insurance for doctors and other medical professionals, but what about malpractice insurance for CPAs? It might not seem like something in the realm of possibility, but CPA malpractice insurance can be a valuable way to protect both yourself and your accounting firm in the same way that malpractice insurance protects healthcare professionals.
Errors and Omissions Insurance
CPA malpractice insurance is actually a term for errors and omissions insurance, more commonly known as E&O. With E&O insurance, you’re covered from damages caused by an error any of your employees may have committed when working with a client. This insurance protects your business from taking personal losses in the event of a claim, making it a smart investment for any CPA firm.
Protect Yourself From Claims and Lawsuits
Many CPA firms consider themselves protected from lawsuits, or think they may be too small for clients to sue. This is a dangerous assumption that can result in liability for extensive damages that can bankrupt the business on a budget. Even one lawsuit can result in damages so extensive that some companies may never recover from the losses. Don’t take the risk. Protect yourself with a proper professional liability insurance package structured to the size and needs of your business.