If you’re an insurance agent who works with novice accountants, you know that there are several key practices they absolutely must employ to avoid getting into malpractice lawsuits. Novice accountants who are relatively new to the business might not be familiar with these principles. In accounting, unlike in some other professions, the standards by which all accountants must conduct themselves are well defined and published regularly under the name of GAAP, which stands for Generally Accepted Accounting Principles. To protect your accounting client from legal or professional harm and help them make the most of their insurance plans, here are some best practices that you can share with them.
Help Clients Familiarize Themselves With Their Insurance Coverage
Before your clients can feel comfortable going to work daily and assuming some degree of risk, they must understand what their insurance does or does not cover. Here, you can help explain to them precisely the sort of protections their policy would give them in different situations. This can help give your clients peace of mind to do their job well.
Ensure They Fully Understand the Principles Listed by GAAP
No matter how new your client is to the business, it’s absolutely imperative that they fully understand and comply with the principles laid out through GAAP. While not a complete list, some of these principles include:
- Full disclosure of a businesses’ finances in relevant records
- Prudence in showing the financial situation exactly as it is, and not trying to have it appear rosier than it really is
- Sincerity, where accountants agree that they are working in good faith
- Regularity, meaning full compliance with laws and regulations
- Periodicity, meaning splitting up accounting entries into multiple periods
Keep Thorough Records, Especially for Tax-Related Purposes
As accountants, your clients already know the importance of keeping thorough records. However, it’s worth noting this point to them, especially when it comes to tax-related documents. In fact, keeping poor records and not thoroughly documenting the financial realities is one of the many pitfalls that can lead to an accountant getting caught up in a malpractice lawsuit. To avoid this, it’s best to maintain highly detailed and accurate records. Your client can review his or her own data regularly to help ensure this accuracy.
An important role that you play as an insurance agent is letting your clients know what protection their insurance would offer in the event of something like a malpractice suit. Those who are new to their profession may need particular guidance to understand how to avoid these legal problems. By advising your clients, you can help them get the most out of their insurance policies.
Formed in 2013, AmSuisse, Inc. has quickly distinguished itself as a wholesale operation that specializes in working very closely with our agents and broker partners to develop responsive, individualized service for each client. Our unparalleled writing support, industry-specific expertise, marketing support, responsive proposals and quotes, strong customer service, and strong relationships with our carrier partners have all helped us to provide the best possible coverage for our clients. To learn more about our available coverage, contact us today at (855) 912-8697 to speak with one of our representatives.