No matter how proficient you are in the accounting field, there can still be room for errors, whether in the actual performance of job or in providing profession advice to clients. In the event that a company or a person becomes subjected to legal battle because of the error or indiscretion you made while performing your job, you will also be dragged to the legal arena.  When this happens, you would have to take the brunt financially and if you do not have the available cash, your savings would be affected or worse, you would have to borrow or take loans just to cover for the expenses. If your profession is susceptible to errors, litigation and other legal issues, it would be wise to be prepared with accountant professional indemnity insurance. By having a professional insurance, you become protected against expenses related to settling costs or defending the claims of a client out of issues that arrived due to your errors.

The exact coverage of accountant professional indemnity insurance differs from one insurance provider to another. However, in general these are the common inclusions of an accountant’s professional indemnity insurance.

  • Creating a mistake professionally out of giving a wrong or bad advice. This is considered breach of duty of care or negligence.
  • Providing wrongful or erroneous information. This constitutes misrepresentation or negligent misstatement.
  • Providing confidential or sensitive information without the client’s consent. This is considered breach of confidence.
  • Making false claims and damaging statements against a person or organization is considered as defamation.
  • Utilization of web content or publication without permission from author. This violation constitutes infringement of intellectual property rights.
  • Civil liability bone out of job performance.

These are just some of the possible inclusions of accountant professional indemnity insurance. You can customize the insurance coverage based on your requirement. Call your prospective accountant professional indemnity insurance provider to see how you can be assisted with. There are several insurance service providers on the internet that you can contact or you can also ask for referrals from your colleagues in the field.