Why Accountants Need Professional Liability Insurance

As an insurance agent, it’s likely that you may have some accountants among your clients. Accountants perform essential tasks in keeping up with tax rules, helping others with their budgeting and personal finances and helping to keep companies informed and keep accurate financial records. While your accountant clients might not think that they need liability insurance, their everyday tasks can cover a range of activities that inherently involve some degree of financial risk, which can put them in a disadvantaged position should a claim occur while they don’t have coverage. To help protect themselves and their businesses, it’s essential that accountants have a tailored professional liability policy in place. If your clients are uncertain why they need this type of insurance, here are some of the reasons they should consider it and some tips for helping communicate this information to them.

Lawsuits Can Arise From a Range of Third Parties

Your accountant clients may be skeptical that anyone would seriously pursue a lawsuit against them, but in fact, many third parties have been known to file suits. Their clients may not be the ones filing suits, but others that may do so include:

  • Business partners
  • Company shareholders
  • Mortgage or other debt lenders

Without a comprehensive policy, your clients could leave themselves at risk of third-party suits. It may be helpful for your accountant clients to take a look at the parties they work with and assess whether there’s significant enough risk to warrant liability insurance.

Any Type of Accountant May Be Vulnerable to Lawsuits

Many lawsuits arise in every type of accountancy, from public accounting, forensic accounting, tax preparation and more. Regardless of the niche your accountant clients work in, they may be vulnerable to suits. For instance, if they make a mistake calculating a payroll tax, they could be sued and require insurance protection to recover.

Both Full- and Part-Time Accountants Can Benefit

It’s common for many accountants to think that if they don’t work full-time, they don’t need liability insurance. However, nothing could be further from the truth. The number of hours worked does not correlate with the risk of having a client or a third-party file a lawsuit. Regardless of how many hours your clients work per week, they can benefit from coverage in the event of a lawsuit or some other sort of claim.

Your accountant clients play an important role for their customers or businesses, helping to ensure the accuracy of key financial records and assisting with budgeting, complying with relevant tax laws or regulations and much more. However, this important line of work also carries some financial risk with it and can leave your clients at a potential loss if they aren’t properly insured. In order to protect themselves and their professional career, it’s foundational to help your clients find the right professional liability policy that meets their needs.

About AmSuisse

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.