According to an IBISWorld report accounting services market research report, the accounting service industry has significantly grown over the past five years eliminating any lingering effects of the global financial crisis. Today, accountants serve everyone, from individuals to billion dollar companies, as their services are in great demand. If you are a chartered accountant and are careful about avoiding unwanted liability on your balance sheet, then it’s fundamental that you have the right insurance for your business. Getting multiple covers from different leading insurance companies can help you secure the best cover for your accounting practice and will also be cost effective. To make you find the right cover easily, this article takes a look at some of the chartered accountant insurance covers that are out there.
Even if you are accounting gurus, you are prone to mistakes too, either through errors or omissions, which can be quite detrimental to a business leading to huge financial loses. Fear not though as there is a way you could dodge the bullet. Professional indemnity insurance is a chartered accountant insurance policy that will protect your business from these losses that could be due to accounting and book keeping errors, failure to comply to audits fully, incorrect tax preparations among others. Also its important to note that it’s an industry requirement that your level of professional indemnity protection is in line with the standards outlined by your professional association. For instance, the Chartered Accountants Australia has today mandates and obliges members to maintain a minimum level of professional indemnity cover.
When you have an office and clients are allowed to visit you for services or when you are flexible and can go out to meet clients in their desired locations, then you are a candidate for public liability insurance. This cover is very instrumental in protecting an accounting firm from financial loses that may be as a result of claims of accidental damage or injuries that result from you going out to meet clients.
A business insurance cover is great for consideration when you have an office as it will provide coverage for your building as well as its contents. Also, if you rely on computers and other equipment to get things done, you need business insurance as this will help you cover the costs when there are breakdowns, repairs and restoration of electronic data.
Buying an Insurance Cover
When you are buying a chartered accountant insurance cover, you need to think about a couple of things. First is whether the cover complies with the current legislation as well as professional association requirements. You also need to determine the costs that are inclusive in the cover. Also, ensure that the policy is able to cover all your kinds of work. Make ensure you understand all the terms and conditions as there are polices that have restrictions and therefore, may not cover all activities like financial planning.
It’s no doubt that the services of accountants today are in high demand, and thus, the need for chartered accountant’s insurance policies.