Bookkeeping is the process of recording and analysing financial data.
It is the foundation of the accounting process. The job of a bookkeeper is to provide a business with accurate information that can help in making decisions and planning future strategies.
Taking on this responsibility is indeed a challenge, and there is a constant risk of having to deal with lawsuits filed by clients.
For this reason, bookkeeping insurance becomes necessary.
Making Journal Entry Errors
This is a problem a bookkeeper is bound to face at some point in time; it arises as a result of human error.
That is why this kind of protection is essential for your bookkeeping business. Even if data is collected and organised using a software, you are likely to make mistakes. Professional liability insurance will protect you if a lawsuit is filed for negligence.
Even if you feel the likelihood of mistakes is not that high, it is a good option to get this type of coverage. It should be considered by bookkeepers and accountants since they provide advice to clients regarding functions of their business—especially in the unlikely, yet plausible event, of a client facing loss / damage due to accidental inaccurate calculations by your firm.
Injuries & Property Damage
Commercial General Liability Insurance will protect your business against any lawsuits filed in a situation where a client suffered from physical injury or if his personal property was damaged as a result of your actions.
If a client tripped and fell in your office because of a wet floor, your insurance should be able to cover for the medical costs. If you end up damaging a property of your client—such as a new laptop malfunction (that resulted in data loss)—you run the risk of being sued.
Loss Of Data
Since the process of bookkeeping has to do with collecting important financial data, this might get lost due to any malfunction or a virus that erased all information you had. In such a situation, business owner’s insurance will cover for all the damage.
Your business cannot function without the electronics you use to store data, and so the insurance policy you choose should be able to provide enough coverage to replace the technology you lost in the process.
It is important you check the total amount of coverage that the policy allows and calculate it against the value of electronics before choosing an insurance policy.
These are the three major problems your business will face; are you prepared for such claims?
The best way to choose an appropriate policy for your business is to compare different options you have.
Find insurance quotes online to see which one suits your needs. There is no point in getting an insurance policy that is unable to cover for the losses.
We at 365insurance allow you to compare policies from the convenience of your home. Find out all the bookkeeping insurance quotes we have to offer.