Why Accountants Need Professional Liability Insurance


As an accountant, you already know the importance of protecting yourself and your finances. After all, that’s what you do for your clients. Do you do it for yourself, though? If you don’t have professional liability coverage, you may not be as protected as you think you are. Check out these reasons to get liability coverage.

You Accidentally Gave Bad Advice

Of course, working with other people’s money leaves you vulnerable to scrutiny. And while you probably realize that accounting is several parts knowledge and just a smidge of luck, your clients may not realize that. If they ask you for stock advice or other investment advice, you may provide information that leaves them with fewer dollars in the bank. Angry clients could sue you for giving bad financial advice. Professional liability for accountants ensures you have the means necessary to protect yourself from legal fees or fines related to the situation.

It Makes You Look More Professional

According to https://www.huntersure.com/, having a professional liability policy is essential even if you truly believe you’ll never need to use it. Even if you never make a mistake in your career, being able to tell new clients that you have the insurance you need to do business responsibly shows them that you take their financial health seriously. The professionalism is likely to bring in new clients and keep old ones satisfied and passing along your name.
Whether you’re just starting out or experienced, have one client or dozens, ensure you work with a reputable insurance agency. Look for one that is licensed and experienced at providing coverage for accountants.