Accountants are an integral part of business operations. Businesses and individuals rely on tax and accounting professionals for financial advice, estate planning, tax preparation and filing, audits and various other financial transactions. They rely on financial statements, which are dependent on solid accounting, to make a number of business and economic decisions.
No business will vie well if records are not well kept. Accounting mistakes can affect a firm’s reputation, credibility, and could even hurt their profits. At the same time, human mistakes (as well as deliberate fraud) happen all the time. And, if preparations aren't put in place to catch and rectify mistakes, they could be incredibly costly to an accounting firm.
The American Institute of Certified Public Accountants recommends every accounting firm carry professional liability and E&O policies to protect their firm from the potential liability that comes with performing more complicated tax and accounting work.
The consequences of accounting fraud and mistakes are well known. The infamous Enron scandal caused the demise of Big 5 global accounting firm Arthur Andersen. Smaller, in-house mistakes could result in misguided business decisions.
Errors & Omissions insurance is an essential coverage for accountants and auditors. Running and accounting firm or department exposes you to significant liability risks. At PLRisk Advisors, we provide an Errors & Omissions insurance program specifically designed for the exposures faced by accountants and auditors. An Errors & Omissions policy from PLRisk provides your clients with coverage that contributes toward legal defense costs, damage awards and settlements.
To learn more about our E&O policy features, visit our professions page for an overview of insurance plans, eligibility, highlights, and target exposures. Give us a call today (855) 403-5982