Accountants are known as some of the most meticulous professionals. You know how important it is to your clients that you be accurate and file taxes on time. It’s a sad truth that you or your staff can still make mistakes and errors, especially as your business becomes more successful and you have more clients. Accountants professional liability insurance is a policy which you can add to your insurance portfolio that provides coverage in case you are sued by a client when you’ve made an error. Sometimes, this insurance is referred to as Errors & Omissions insurance or E&O.
You may think that you don’t need E&O insurance because you are very careful. You should remember that America has become an extremely litigious society. Your business could be sued for many different reasons, some of which aren’t even connected to making a mistake. You still need to provide a defense for what is known as a “meritless” case. This defense can be costly and time consuming for you.
Accountants professional liability insurance gives you peace of mind for your business. You have so many things to worry about, not just during tax season when things can get extra busy. Don’t let a small error destroy everything you’ve worked for. Have the risk management strategy in place to protect your business. You can’t afford not to have E&O insurance on your way to success.