How To Best Protect Your Accounting Firm from Claims of Negligence 

Accounting services are vital to businesses across all industries. Unfortunately, this doesn’t do much to shield accountants from claims of negligence. If you’re in charge of an accounting firm, you need to take the steps required to shield your company and its assets from harm. Consider these points to learn more about accountant liability

Taking a Closer Look at Liability Insurance for Accountants

Many accountants make the mistake of assuming that they are only held liable for the errors that they commit themselves. In truth, this is not the case. Should a client attempt to commit fraudulent acts, the accountant can also be held responsible. In order to avoid this scenario, professionals must take out comprehensive accountant professional liability insurance. This coverage typically includes mistakes related to:

  • Bookkeeping
  • Tax returns
  • Omissions

As with any insurance, it is best to assess your risks before selecting a plan. Knowing your unique hazards will highlight which policy has the most to offer.

Reducing the Odds of Accountant Liability Claims

Other than taking out appropriate insurance, you can also limit claims by being more discerning about who you take on as a client. If you notice any red flags, take the precautionary steps necessary to protect your name and your assets.

In order for your accounting firm to see consistent success, you need to take action to reduce the odds of claims of negligence. Review the details surrounding your insurance options in order to find the best fit for your business.