Whether you already have an accounting firm or want to expand your services in the market, it is essential to know that in a time-sensitive business, like accounting, damages and disruptions can arise to affect your relationship with clients.
From a natural disaster to a physical injury or a disgruntled customer, any unfortunate event can arise to disturb your business. While some events are beyond your control, it is feasible to curtail the losses by purchasing adequate insurance coverages.
Here are some of the group and professional indemnity insurance plans that accounting firms should purchase:
1. Professional Indemnity Insurance
All those who are working in the accounting firm are human beings. And, humans make mistakes even if it unintentional, which is why professional indemnity insurance for accounting firms is imperative. Also known as errors and omissions insurance policy, this insurance policy offers financial coverage against legal suits which may be filed by any of their clients who may hold the accounting firm responsible for their losses. The accountant professional liability insurance policy offers defence and damages for failure or discharging improper professional services.
2. Directors & Officers Liability Insurance
The D&O insurance policy is useful as it safeguards the directors and officers of a company against their actions which can affect the business operation or profitability of the company. The policy becomes active if a lawsuit is filed against directors by the company’s employees, stakeholders and other parties who may hold them responsible for the losses and damages incurred by them. If a director or a senior officer of your company finds himself/herself in a legal situation, this type of insurance policy can help them by covering losses or damages caused due to the lawsuit.
3. Property Insurance
Your office might have lots of equipment which you are using for your business. Moreover, if you own an office building, it is necessary to consider buying a policy that will safeguard you against a myriad of risks like theft, fire, vandalism, etc. Fire insurance, which is part of property insurance, will offer you financial coverage in case there is a loss or damage to your office building or equipment from the fire. You can customise the insurance policy and add riders like burglary cover, earthquake insurance, etc.; to expand your coverage.
4. Workers’ Compensation Insurance
This insurance policy offers coverage to employees who get injured while working on the job. It means the insurance policy provides wage replacement and medical benefits to those who get injured while working. In exchange for these coverages, the injured employee or his/her family gives up the right to sue the employer for compensation. Even if you have an accounting firm, where there is less or no use of heavy machinery or equipment, your employees can still get injured in the workplace. For instance, you would be held responsible if any of your employees falls or slips on the floor and gets injured.
Irrespective of the type of business you have, it is necessary to have a workers’ compensation insurance policy to safeguard both yourself and your company.
5. Group Health Insurance
In today’s age, where medical costs have reached an alarming stage, your employees would surely like the idea of getting a group health insurance policy. This insurance policy will offer them coverage against soaring hospitalisation expenses and thus, help them get the best medical treatment without worrying about expenses. Moreover, by offering group medical insurance to your employees, you can also get tax benefits.
6. Group Travel Insurance
If you or your employee travel a lot due to official work, it is high time to go for a group travel insurance policy to get coverage against unforeseen events. During travelling, unexpected events like loss of passport, loss of baggage, personal accident, etc.; can arise and disturb you both physically and financially. Imagine, what if your employee who is on an official trip to London met with an accident?
As an employer, it would become your responsibility to incur the medical expenses of the injured employee. However, if you have a group travel insurance policy, you can approach the insurer who would cover the medical expenses of the injured employee, and thus, save you from sudden expenses.
Remember, your accounting company is the result of your efforts and therefore, don’t leave anything to chance. Choose the right insurance policies and get comprehensive coverage.