A hired accountant will need chartered accountant insurance to cover all the services he offers. An accountant’s job is to prepare and examine financial records, ensure all taxes are properly paid on time, and that records are accurate. Accountants summarise the financial operations of a business to make it run smoothly and efficiently. Sometimes mistakes or miscalculations happen and will need insurance protection. How much to cover will depend on certain standards and guidelines, rules and regulations.
What is Chartered Accountant Insurance?
The chartered accountant insurance will ensure protection, especially when your practice is at risk, due to failure of management strategies. If a client or third party isn’t happy with your advice or service, they may hold you liable and will pursue a claim for financial loss. Accountants can also be legally responsible if they violate a contract, neglect or breach a statute, or having deceptive or misleading behaviour in consumer protection laws. Once you’re litigated, insurance will protect you personally, your business and employees.
Consider the Gaps
The chartered accountant insurance should cover every aspect of your work or service. You need to study the terms and conditions of the policy, so you know what is and isn’t covered. The level of insurance cover will usually depend on the size of your business, and the nature of services you offer. Your monthly fees or annual income will best determine the minimum amount of insurance you need. Also, factors such as the industry, the number of professionals and staff in your business, and history claims can greatly influence the coverage.
Sometimes insurance can be based on your location. For instance, accountants in Australia are mandated by their professional accounting bodies a cover for registered bankruptcy professionals. The coverage may not be included in a generic policy, that’s why it’s important to know you’re fully covered. Read thoroughly the policy so you know your limited coverage.
In some insurance policies, a chartered accountant insurance may have an excess. The excess billed in your insurance is determined by the number of people covered and the fees you pay. Even if you consider a new service, always know what is covered by insurance. Review everything you need to know, so you are completely protected from potential risks.