Protecting Yourself: Professional Indemnity Insurance for Accountants, Bookkeepers and Tax Agents - Contractors Insurance Australia

March 22, 2016

As an accountant, bookkeeper or tax agent, you’re always making sure the figures stack up for your clients so they’re protected when it comes to tax time. Although looking after the interests of your clients should continue to be a priority, you also need to remember to protect yourself and one of the best ways to do this is to have professional indemnity insurance in place.

What is professional indemnity insurance?

Professional indemnity insurance is something that many professionals have heard of but they aren’t quite sure it applies to them. If you provide advice or services for a fee as part of your business, then professional indemnity insurance is more than likely applicable to you. It will protect you against legal costs and claims by a third party for damages which come from acts, omissions or breaches of professional duty. A successful claim could see you liable for hundreds of thousands of dollars which is why professional indemnity cover is so important.
Why is professional indemnity insurance important for accounts?
As an accountant, bookkeeper or tax agent, you provide professional advice to your clients on a regular basis about financial matters. The sensitive nature of the information you work with can unfortunately leave you open to a claim and this is most commonly due to financial loss occurring as a result of your professional advice to a third party. In many cases for your profession you’ll find that professional indemnity insurance is compulsory and this is to ensure you’re protected throughout your career.

How do I get the right policy?

Professional indemnity insurance policies can differ greatly and it’s important that you have high quality cover in place. Always have a detailed read of the Product Disclosure Statement so you can be satisfied you’ll be appropriately covered if a claim is filed against you. Look for things like the scope of cover, amount of cover, and the policy terms and exclusions

One of the easiest ways to check you have the best policy for your situation is to contact your insurance broker who will be able to look at your existing policy and see if there are better alternatives available. The cost of your policy will depend on a number of factors including the size of your business and your areas of risk and your broker can negotiate a good deal on your behalf. When you speak with your broker, they can provide you with the key policy features of a potential policy and any available extensions which may be appropriate.
Professional indemnity insurance offers you peace of mind and allows you to go about your daily work with confidence.

If you have a contracting business as an accountant, bookkeeper or tax agent and need reliable professional indemnity policy, contact Contractor Cover today on 1300 438 268 or contact us online.

General Advice Warning – retail clients *

General advice on this website has been prepared without taking into account your objectives, financial situation or needs. Before acting on the advice, please consider its appropriateness. You should also consider our disclosure documents, which include our Financial Services Guide (FSG) and Product Disclosure Statements (PDS) for some products.
*Retail clients are individuals or those purchasing an insurance product for use in connection with a small business where the product is a designated retail product (eg motor vehicle, home buildings, home contents, personal and domestic property, sickness and accidental and travel insurance). All other clients are wholesale clients.

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