CPAs wear many hats these days, from financial investing to auditing. No matter what your business focuses on, it’s important to have a full insurance portfolio that fits your needs. You probably carry general business liability insurance. This insurance won’t cover your losses if you make a mistake or error that costs a client a large amount of money. Having CPA professional liability insurance is the solution.
While no one sets out to make mistakes, everyone is human. It’s just basic statistics that as you handle more documents and clients, you have more opportunities to make errors or miss filing deadlines. Don’t think your clients will be forgiving if they lose thousands of dollars due to a simple mistake.
Even if a lawsuit brought against your firm is unfounded, you will have plenty of costs during the defense. It’s not just the cost of the lawyers, but if you have to have an independent auditor brought in or someone to prepare documents and displays, this all costs you time and money. CPA professional liability insurance covers these costs, up to the limit of your policy, so that you can focus on your business.
This insurance protects your assets so that your hard work you put into your business isn’t brought down with one lawsuit. You also get the advice of an expert insurance specialist who understands your industry. This can help you put a plan into place to reduce your risks.