Why Accountants Need Errors and Omissions
Accounting holds a pivotal role in the economy. Businesses, government and individuals rely on tax and accounting professionals for financial advice, tax preparation and filing, estate planning, audits and various additional financial transactions.
But your accounting clients, while highly skilled, are still human. Mistakes can be made. Statements can be misconstrued. Details could slip through the cracks. And a malpractice suit could seriously hurt your accounting clients’ careers. This is where error and omissions insurance comes in.
The American Institute of Certified Public Accountants recommends that every accounting firm carry E&O insurance to protect their operations from the possible liability claims. Examples of errors & omissions claims can include:
- Accounting errors
- Data entry errors
- Failure to follow Generally Accepted Accounting Principles or Auditing Standards
- Improper or incorrect tax advice
- Failure to maintain appropriate documentation or appropriate safeguards
- Failure to perform background search or appropriate peer review
- Failure to complete appropriate forms
- Failure to detect fraud
- Failure to meet deadlines
Shayna B. Chapman, CPA and Managing Member of Chapman & Burris CPAs LLC, says that accounting firms could actually use liability insurance as a marketing tool. She states that it is a way for firms to proclaim that they will provide the best service possible, but in the event that something does go wrong, they’re covered to protect their clients.
An Errors & Omissions (E&O) policy from PLRisk Advisors provides your clients with coverage that contributes towards legal defense costs, damage awards and settlements. What’s more, our programs can be customized specifically for accounting professionals. We understand the unique risks that accounts, CPAs and auditors face and can help you provide your clients with an insurance program that is specially designed to meet their needs.
Contact PLRisk today to learn more about our Accountants Errors and Omissions package. (855) 403-5982.