Protecting Your Accounting Business

Accountants E&O

Protecting Your Accounting Business

Some industries absolutely need a type of insurance that protects them in cases of errors and omissions, or E&O. Accountants E&O can offer your employees and business protection when clients file lawsuits for negligence or wrongful acts.

What Are Errors and Omissions Insurance?

In short, errors and omissions insurance is a form of professional liability that covers businesses that offer advice or services in the event a lawsuit is brought against them. These lawsuits can be the result of the following:

Negligence

Misinformation

The financial damage to clients

Failure to provide a service

Incomplete or inaccurate work

Why Do Accountants Need E&O Insurance?

Accountants handle the monetary aspects of a business or an individual’s personal life. Therefore, mistakes are usually in the form of providing the wrong information, inaccuracies in the information or any advice that leads to financial difficulty for a client. For accountants, mistakes could end up costing clients money or other damages. To mitigate this risk, accounting businesses should have E&O insurance.

Offering Accounts Professional Protection

While people make mistakes, some can be more costly than others. An accounting mistake can lead to a lawsuit and damage the firms reputation. Fortunately, accountants E&O insurance means your business and your employees can be covered if a lawsuit comes about as a direct result of an accounting error.