Why Should Accountants And Bookkeepers Get Errors And Omissions Insurance?

Why Should Accountants And Bookkeepers Get Errors And Omissions Insurance?

There are a growing numbers of bookkeepers Melbourne today as more and more now look to use their services. However, one of the biggest concerns they face is whether to get Errors and Omissions insurance. For many bookkeepers, they don’t actually have this type of insurance which can be bad for their business. read more information on Errors and Omissions insurance at http://www.c-b-a.ca/member-services/errors-omissions-insurance/. Thousands don’t think they need it, while many others just don’t know whether they should buy it so, why should accountants and bookkeepers get errors and omissions insurance?

A Common Misconception

To be honest, there is a common misconception that it is only lawyers and health care professionals who need to look at buying Errors and Omissions insurance. This isn’t exactly correct because a lot of professionals who provide a fee-paying service to others need to have Errors and Omissions insurance. However, since most think this is just limited to doctors and lawyers, they fail to get it and it turns out to be the worst decision made. A lot of bookkeepers fail to get insurance but that is why it’s important to understand more. Read info at www.bookkeepersco.com.au.

A Miscalculated Figure Brings a Lawsuit

If there is missing information say on a tax document, the client can incur a penalty which they could then turn around and sue the bookkeepers Melbourne who handled their taxes. It doesn’t necessarily need to be the bookkeepers fault however but clients can still file a lawsuit against the firm which results in hundreds, possibly thousands of dollars worth of court and legal fees. However, with E&O insurance, the bookkeeper is protected.Click here to read more info on E&O insurance.

Covers Settlements Costs

When a bookkeeper has Errors and Omissions insurance, they will be covered should there be a settlement. For example, if the bookkeeper has been at fault for an error in their work and are sued, they can be covered for the settlement with the insurance they have. This can be extremely important to have because if there is a settlement and the accountant or bookkeeper cannot afford to pay, it may result in bankruptcy, so insurance helps protect them against this.

Why Should Accountants And Bookkeepers Get Errors And Omissions Insurance?

Covers Defence Costs

When someone brings a lawsuit against a bookkeeper, it may very well lead to the courtroom which can incur thousands of dollars worth of legal fees and court costs. However, many accountants and bookkeepers cannot afford these costs but they will be covered for some or even all with the Errors and Omissions insurance. That is why more are choosing to get this cover and to find out more, use www.bookkeepersco.com.au.

What’s The Point Of E&O Insurance?

  • A Bookkeeper Is Covered
  • It Helps To Reduce Stress When A Lawsuit Is Being Brought Against Bookkeepers
  • The Bookkeeper Is Protected No Matter The Outcome
  • The Client Is Protected Also

Let’s face it, accidents happen all the time and while an accountant or bookkeeper may not intentionally make an error, it could happen. However, that is why the Errors and Omissions insurance are there because it covers the accountant should they make a mistake or be accused of making a mistake. Many new and even some experienced accountants don’t have this type of insurance and as a result suffer financially when there is a problem.

Accountants Need Insurance

Any accountant can have an off day; information may be left out by the client or they themselves may in fact leave out important information but it can result in terrible consequences for the accountant. This is why it’s important to consider insurance and even though you may be an excellent accountant, it is still useful to have. You may not plan to make a mistake but it happens, any bookkeeper knows that, so be wary and wise.

Source: http://www.rainiervalleypost.blogspot.co.uk/2013/05/why-should-accountants-and-bookkeepers.html

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