Businesses of all kinds need different insurance policies to make sure they stay financially protected in the event of lawsuits. Accounting practices are no different. Here are a few insurance policies needed by accounting firms, courtesy of National Underwriter magazine.
General liability and property insurance is a must for all accounting firms. At any time, a business can be affected by fire, natural disasters and other potentially devastating events. In some cases, accounting firms rent more office space during busy seasons, and their property insurance must also account for this. General liability policies can also cover for injuries experienced by others in the place of business.
Like other professional services companies, accounting firms must also guard against the fallout caused by human error. Accountants are challenged to keep up with complex policies and regulations, such as tax laws, and mistakes sometimes occur even in the most scrupulous companies. Because of this, accountancies should secure error and omissions insurance.
Another insurance policy needed by accounting firms is workers' compensation insurance, which is required in most states for firms that have more than one employee. Even employees in accounting firms with non-physical roles are protected by the policy.