It’s that time again–when tax preparers across the land are rolling up their sleeves and sharpening their pencils in preparation for another busy tax year. Many of these individuals actually have plenty to do year-round, but the months leading up to April 15 are, of course, the big push as millions of citizens seek their services to file their income taxes. Many of the good ones don’t even seem to have to advertise; word of mouth from satisfied clients brings new customers time and time again. Still, this is a business that hinges on accuracy, and the concept of human error can happen here as much as anywhere else, and a numerical error could slip through the cracks, resulting in an expensive lawsuit. That’s why accountant professional liability insurance is a must for those in this line of work.
Protection for a number of things gone wrong
This policy covers you in the event you are sued by a client alleging that you failed to provide services as promised, such as failing to finish and file a customer’s paperwork by the April deadline; for professional negligence, such as omitting a key fact in a return you’re preparing; work that is judged to be incomplete, inaccurate, or otherwise ill prepared, such as losing several extremely important receipts that entitle your client to thousands of deductions; or other myriad of mistakes that may occur. That’s what happened to Mattie, who had been preparing taxes for years without incident. Last year, though, in the middle of converting her clients’ files from paper to digital, she inadvertently destroyed some financial records for several small business clients. One in particular was preparing for an audit, needed the records that had been shredded, and there were no backups to be had anywhere. The client ended up having to pay additional monies and penalties as well, and they in turn sued Mattie for negligence. Fortunately, her accountant professional liability policy kicked in, covering the expenses Mattie incurred to hire an attorney to defend her. Even the settlement that was eventually reached between her and the plaintiff was covered by the policy, to her relief; otherwise, the nearly $50,000 would have had to come out of her pocket, an amount that she could ill afford.
Get covered today
Talk to a professional insurance agent who is experienced in securing this type of coverage. He or she will have access to leading carriers that can offer quality protection at competitive prices.