Even if you are proficient in the field of accounting and no matter how long you have been practicing in the industry, there might be times that you could commit errors. Mistakes in your accounting practice can stem from errors committed while doing your job or in providing wrong professional advice to clients that resulted in legal liabilities. If you are an accountant and your client was subjected to a legal dispute because of your wrong advice or mistake in the conduct of your job, you will be, in one way or another, included in the legal battle. When this happens, you would need money for compensation or other fees which may be accrued during the litigation. If you are in the accounting practice where you can be susceptible to errors, it would be best to equip yourself with an accountant professional indemnity insurance. This way, the professional insurancewill protect you against unexpected expenses in relation to the case filed against you or your company.
The coverage of accountant professional indemnity insurance varies from one insurance provider to another. But generally,the insurance provides the following professional indemnity.
- A mistake committed out of providing a wrong or bad professional advice to the accountant’s client. This error is considered a breach of duty of care or negligence on the part of the accountant.
- Providing information that is wrongful or erroneous, whether done purposely or otherwise. This creates misrepresentation or careless misstatement.
- Disclosing or sharing confidential or sensitive information without the client’s approval. This act is considered breach of confidence.
- Stating false claims and harmful statements against a person or organization. This is considered as oral defamation.
- Using web sources and content or forms of publication without the author’s permission. This is a violation of intellectual property rights.
The mentioned points are just some of the acts that can be covered under accountant professional indemnity insurance. You can talk with the insurance provider on how you can tailor fit the coverage to your specific needs. There are several insurance service providers online that you can call or you can ask for referrals from your colleagues in the industry.