Specific to the accountant, it is important to determine with your insurance professional the policy limits of a Professional Liability policy or Errors and Omissions (E & O) insurance. E & O insurance is additional coverage not covered in the general liability policy. Accountants, Attorneys, and engineers, need this additional coverage which offers far greater and more specific liability coverage.
A Business Owner’s Policy normally covers all the basic needs for your accounting firm. This includes basic property and liability protection for business. More often than not, your Business Owner’s Policy can be added to and coverage(s) extended as your business grows.
Property insurance will include the building your business is located, either owned or leased. In addition, furnishing, and equipment as well as machinery, tools, computer and phone systems, anything used to conduct business will be protected.
The general liability coverage, not to be confused with the Professional E & O described above covers the firm from being held liable for injury or error. This includes damage to property as well as to people as well as implied damages. It is important to remember that liability insurance covers the cost of litigation for these claims. Additional types of coverage such as loss of income are often included in the business owner’s policy. Discuss these options with your licensed insurance professional.
Every business, including accounting firms, need to protect the business, the owner, and if applicable, it’s officers and board. If the firm is large enough, it may wish to consider directors and officer’s liability insurance. Again, this differs from the general liability and professional liability insurance.
Every business is required to carry worker’s compensation except in Texas. (While not required, it still makes sense.)
Review the specifics of your business with your licensed insurance professional. Together, you will be able to determine the proper coverage necessary to reduce the risk exposure of your business.