Accountants face big responsibilities. They handle people’s personal and business finances, one of the most sensitive aspects of their lives. Having professional liability coverage is necessary for all CPAs.
The experts at Huntersure LLC list many legal liabilities of an accountant:
It’s unwise for accountants to assume that just because they did nothing wrong that they won’t be sued. Even claims that turn out to be groundless take time and money to handle. This is where liability coverage kicks in.
Many accountants assume clients won’t sue them because they have a good relationship. When it comes to their money, though, clients only have one real loyalty. If they think they’re not getting good services, they may not hesitate to sue their accountants, even if they like them on a personal level.
Ideally, accountants would always double-check their work and never make an error. That’s not really a reasonable expectation, though. Humans make mistakes, and if the mistake costs clients money or stress, they are bound to take legal action.
No matter how well-established an accountant’s practice is or how well-liked the professionals at the firm are, accountant liability coverage is a necessity. It protects both the firm and the individual accountants from having to pay potentially exorbitant legal costs out of pocket.