Accounting firms always face the possibility of a legal claim. Depending on the size of the claim, your business can negatively suffer as a result. Insurance for accountants is an excellent way to protect your business from aggravated clients. Educate yourself on the three most common financial threats to decide if a coverage plan is right for you.
Malpractice and disciplinary claims ultimately require you to hire legal counsel. Often, lawyers bill by the hour, which can result in steep fees. A quality policy can help you manage the costs.
If a claim is not settled early, it might involve a trial in which you or one of your employees can be called to testify. Missing work days to attend court can impact your bottom line. Insurance for accountants might reimburse you for the missed days.
Unfortunately, there is always the chance your firm might have to pay a large settlement. Having a top-notch policy by your side in such an event can save your firm from financial ruin.
Your firm might employ talented professionals, but there is always the possibility of legal troubles on the horizon. Hopefully, learning about these three threats can educate you on the importance of insurance for accountants.