As a certified public accountant, your job is other people’s money. There are few riskier things to take responsibility for than the finances of others. Accordingly, the field is replete with liability risks, with potentially devastating results for your business. Making the wise choice of indemnifying yourself with a CPA professional liability insurance policy is an important step to protect your livelihood.
Claims against CPAs are rooted in omissions and errors made in financial paperwork and calculations that can lead to significant monetary and legal problems for clients. When this happens, clients respond with charges of negligence and attempts to recover damages in court. Fees mount, beginning with court costs and continuing through attorney expenses and compensation of the client if you lose your case. An appropriate CPA professional liability insurance policy can help protect you in such an event.
The Bottom Line
A common instinct when considering adding liability coverage is to play the odds in favor of saving a little cash. A careful consideration of the relatively minor benefits of pocketing some extra money show they pale in comparison to the potentially devastating costs of having to deal with litigation without the aid of CPA professional liability insurance. When you’re guiding the financial future of your clients, take care not to neglect your own.