When you work as a bookkeeper, accountant or tax agent, you have an important role in a range of tasks including keeping on top of financial transactions, maintaining records, analysing financial data and providing insight into finances. A major part of your role is providing professional advice and for this reason, you need to ensure you have professional indemnity insurance in place.
What is professional indemnity insurance?
Professional indemnity insurance is intended to protect professionals if you provide advice or services. Your indemnity insurance will cover you financially if a third party suffers a loss and makes a claim against you for damages due to an act, omission, negligence, or breach of professional duty. Not only does your indemnity insurance cover the costs associated with damages, it can also offer financial cover for legal bills, investigations costs, and public relations representation if required.
For bookkeepers and accountants who work for an employer, they will often have professional indemnity insurance in place on your behalf. However, if you work as a contractor then you generally need to arrange your own cover. Remember, indemnity insurance is an industry requirement for all bookkeepers and BAS agents and you’re responsible for ensuring you have indemnity insurance in place.
What are the risks faced by bookkeepers and accountants?
Bookkeepers and accountants work in a diverse field and are required to give advice and provide services around sensitive financial areas. This means that you have a number of exposures which can leave you open to a third party claim following a loss. Some of your areas of risk include:
Late or incorrect lodgement of documentation
Errors or omissions in financial statements
Incorrect or misleading interpretation of financial data
Breaches of confidentiality
Loss of documents
Failure to comply with audit procedures
Incorrect financial advice
Conflicts of interest
Failure to lodge tax returns on time
No professional sets out to be on the receiving end of an indemnity claim, there may be circumstances where a third party suffers a loss despite your best intentions. The complexity of your work and range of risks involved highlights why indemnity insurance is so essential for bookkeepers and accountants
Comprehensive contractor insurance
At Contractor Cover, we offer comprehensive insurance for bookkeepers, accountants and tax agents. We ensure that you have the right protections by offering multiple forms of cover in a single policy. Whether you’re interested in public liability insurance for bookkeepers or want to explore policies such as life insurance, our brokers can help. The most common policies that are included in our convenient package include:
General property insurance
Public liability insurance
Personal accident and illness insurance
Professional indemnity insurance
Tax audit insurance
If you’re interesting in business insurance for bookkeepers, accountants and tax agents, speak with Contractor Cover today on 1300 438 268 or fill in our easy online form.