Are you setting up your very own public accounting practice? There are a number of things you need to keep in mind before you do so.
You first need to decide which kind of practice you are setting up. Your business could either be full time, part time or on a consulting basis.
As an accounting professional, you will be dealing with the financial records of various businesses. You have a certain commitment to your clients that requires you to provide them with accurate information.
What is professional indemnity insurance?
Indemnity insurance coverage provides protection to professionals who provide consultancy or similar services to their customers. If there is any damage to a third party because of your professional advice, then it is you who will be held liable. In such situations, indemnity insurance will be able to cover the costs.
Who needs this kind of insurance?
- Accounting professionals
- Accounting firms
- Enrolled Agents
What will the insurance policy cover?
This kind of insurance policy should typically cover for the following:
- Violating rules when providing professional advice.
- If you have employees working for you and they provided the client with the wrong information or were in any way dishonest in their dealings.
- If any important documents have been misplaced in the process.
- Any privacy related concerns that might arise because client information is confidential.
- Not following what was decided in the agreement signed with the client.
- Practicing unfair trading which is against Australian law. For this reason, it is important to follow the Fair Trading Act.
Any kind of loss incurred on a third party can result in the need for this kind of coverage. The loss for which this is applicable typically includes:
- Medical bills that need to be paid due to injury or illness suffered
- The fees of any consultation or treatment received by the individual
- Any monetary loss incurred by the third party
When an individual suffers from any of the factors mentioned above, a lawsuit can be filed against your accounting business.
For these reasons, when setting up your very own practice, be sure to choose professional indemnity insurance that includes all of this.
In order to choose a policy that meets your budget—and one that offers you comprehensive coverage, check out accountants’ indemnity insurance quotes.
365insurance provides you with different policies so you can make an informed decision and keep your business up and running.