Whether you’re an accounting firm of one or many, your business has certain insurance needs that can be vastly different from other businesses.  As professionals who deal with the financial and personal information, as well as vital tax information, you need additional coverage that goes above and beyond the standard business owner’s policy.

What kind of Insurance Do You Really Need?

Buying insurance can be a confusing process for many business owners. There are so many options available that it is difficult to decipher which are right for your business, and which you can do without.  The following are some of the policies we recommend you, as an accountant, should have on your side.

Errors and Omissions Insurance for Accountants

Errors and Omissions coverage for accountants works similarly to the way medical malpractice coverage works for medical professionals. The underlying premise is that professionals, like you, are human and mistakes happen.

Errors and omissions may not cover all mistakes, but it does cover common mistakes accounting professionals may make, including:

• Failure to perform a promised task
• Negligence
• Incomplete, incorrect, or incompetent work
• Mistakes and/or oversights

The real beauty of E&O coverage is that it often covers legal costs, which can be substantial, in the event you need to defend yourself.  If a lawsuit results in a settlement or negative judgment, this valuable insurance will cover costs, up to the total coverage amount.

This important coverage is not only for accountants.  It can also be various accounting professionals including:

• CPAs
• Tax Preparers
• Bookkeepers
• Auditors

Business Owner’s Policy

This is the gold standard for businesses today.  Every business needs a business owner’s policy in order to cover the basics of business, such as the physical building and structure of your business, office equipment, business supplies, etc. as well as provide general liability coverage in case someone is injured on or by your business property.  A Business Owners Policy, also referred to as a BOP, gives you this coverage by providing property and general liability insurance coverages.

Cyber Liability Insurance

This is a relatively new policy that is becoming more and more necessary to businesses today. It is especially important to accountant businesses that have access to private financial information about clients including bank records, tax records, and identification records that are popular target for identity thieves and hackers.

This information is entrusted to your business and you have a legal obligation to protect it. Unfortunately technology for hackers seems to be moving faster than the technology necessary to defend against them.

Cyber liability insurance helps protect you from the legal and financial fallout resulting from a successful cyber-attack against your business.

Workers’ Compensation Insurance

In New Jersey, any business that has employees is likely required to purchase workers’ compensation insurance coverage. Not only is it a wise move to make regardless of legal requirements, but it also helps you avoid stiff fines or potential legal action from employees injured on the job.

Other policies to consider for the protection of your business include:

• Umbrella Liability Insurance
• Excess Liability Insurance
• Commercial Auto Insurance
• Unowned Auto Insurance
• Business Income Insurance
• Equipment Breakdown Insurance
• Business Liability and Medical Payments

Call us today at 908-879-6500 to learn just how well our numbers add up for your accountant business needs.