Many small business owners in this area don’t realize how important this coverage is.
Bookkeepers insurance is an often overlooked by freelance professionals who don’t realize how vital it is to protect themselves against risks their general commercial liability policies don’t cover. This coverage is in the form of professional liability insurance.
Keeping books involves a number of risks that are unique to this task and not covered by general policies.
Professional liability bookkeepers insurance helps to protect your business or consultancy from risks general commercial liability policies don’t cover. It is a type of protection tailored to the unique risks of this business. This type of policy is essential to completing a bookkeeper’s comprehensive coverage portfolio. This is the case whether you work from home or out of an office.
Once you have coverage, it’s always wise to review it once per year or following any significant changes to your business. This way, it will remain up to date and applicable to your current coverage needs. As your business continues to grow, it’s always wise to make sure you have increased your coverage limits in order to minimize your claims exposure.
Agents or insurers experienced with this type of business coverage can advise about bookkeepers insurance.
A specific professional liability insurance policy is a good idea for bookkeepers when:
• Your professional association requires it for membership eligibility
• Your clients require it as part of their terms for doing business together
• You have personal assets that would be placed at risk if a client files legal action against you.
• You, your employees or subcontractors offer services or advice that could lead to a lawsuit or to a client’s financial losses due to any alleged errors and omissions or wrongdoing.
Even if you are exceptionally good at what you do, no bookkeeper is immune to a miscalculation or unintentional data omission that could lead a client to experience financial loss. Moreover, regulations, laws and audit requirements are regularly changing, and clients depend on you to remain an expert in all these issues. By missing the slightest detail, it could lead clients to sue if they should suffer financial harm.