Bookkeeping & Accounting for Insurance Companies

Mistakes do happen, and when they do, your coverage is a silver lining. If a client claims you made a mistake and it’s cost them, you’ve got to defend yourself. The long answer—technically, whether bookkeepers need insurance depends on what “need” means.

Bookkeeping Insurance

Their work in maintaining the general ledger is key to a business’s accurate financial reporting. Because of the importance and sensitive nature of their work, bookkeeping businesses may be exposed to a variety of risks and liabilities. One small mistake can lead to an unhappy customer who may blame your business and take you to court for damages. It is best for anyone involved in the financial services industry to seek proper safeguards and protection from financial liabilities.

Why do bookkeepers need professional liability insurance?

There are tons of insurance providers and policies to consider, and while shopping for insurance doesn’t need to be a burdensome task, it often can be. Take our quick quiz and Diya will tell you the coverage that best fits your business. Importantly, in https://bookkeeping-reviews.com/bookkeeping-insurance/ all of these cases, your own intentions and even actions are less important than the perceived and real impacts clients experience. Whether or not you meant to omit work, make an error,  or create conditions leading to harm, the effect is the same.

Bookkeeping Insurance

This policy helps small business owners survive data breaches and cyberattacks. It can pay for data recovery expenses, client notification costs, and more. Most states require workers’ comp for bookkeeping businesses that have employees. It also protects sole proprietors from work injury costs that health insurance might deny.

Reasons a Family Counselor Should Be Insured

In the same way that medical doctors must have malpractice insurance, bookkeepers also require a specific type of professional liability insurance. Bookkeepers like you are strongly advised to secure  professional liability insurance that is tailored towards your area of specialization. The information provided on this website does not constitute insurance advice. All content and materials are for general informational purposes only.

  • So, if you get assistance from an experienced and caring business insurance company, the whole process will be easier and less time-consuming.
  • Slipping, tripping, and falling might sound like day-to-day accidents in the office, which doesn’t lead to disastrous results.
  • It protects your business and personal assets from claims of wrongful acts (errors, omissions or negligence) committed by you or an employee while performing professional duties.
  • The costliest injuries to settle are leg injuries, eye injuries, head injuries, arm injuries, and foot injuries.
  • Bookkeeping insurance protects against lawsuits, injuries, and accidents that could financially cripple your business.

A damaging fire, theft of computers, or an advertising misrepresentation lawsuit could put your bookkeeper business at risk. When you opt for our services, you get access to our talented and dedicated experts who ensure the success and growth of your business. You can make better use of time by outsourcing the accounting of your insurance company to us. We ensure that our clients always get a high accuracy rate that helps to drive precise results. Your invoices and payments will never fail to go out on time when you outsource your insurance agency accounting to us.

What Does Professional Liability Insurance Cover?

You can get quotes for bookkeepers professional liability insurance using the form shown at the top of this page. Professional bookkeeping, especially, is more than just a business—it’s a pillar of society. Professional bookkeepers ensure the accuracy and security of records that impact everyone in society on a day-to-day basis. So, in turn, it’s extremely important that bookkeepers themselves are secure. To that effect, whether you’re a freelance bookkeeper or own a bookkeeping business, you should look into bookkeeping insurance to ensure your own safety. No matter how careful you are in your everyday business, unexpected and unfortunate events can and do happen.

What are the liabilities of a bookkeeper?

Bookkeepers can be held liable for damages to victims of fraudulent bookkeeping activities, such as false transaction records or receipts. In these cases, a client could sue you. Bookkeepers are required to follow legal and ethical rules governing accountants and accounting activities.

As your small business expands, it is wise to increase your insurance coverage as well. In this way you will protect your small business assets and your reputation. The right insurance coverages can help protect your bookkeeping business from not only the everyday risks of doing business, but also specific risks that bookkeepers may be more susceptible too. As a business owner, it’s up to you to make sure that you’ve sufficiently prepared for any worst-case scenario. It pays to shop for specialized E&O insurance for you bookkeeping operation.

The best way to ensure you find the best insurance for your bookkeeping business is to prepare yourself for your search and negotiation by assessing your needs. If you’ve been insured in the past, request a loss runs report to present to your new insurer. Otherwise, be ready to report and accurately account https://bookkeeping-reviews.com/ for your business’s insurability. Regardless of legal requirements, though, all businesses can benefit from the protection that insurance provides. Even the most careful business owner could face serious and potentially destructive financial struggles resulting from things outside of their own control.

  • “ Bookkeeping work can involve some costly risks to both the employer and taxpayer who is supplying funds for this particular type of activity.
  • Just as medical practitioners need malpractice insurance tailored to their risks, you need professional liability coverage for bookkeepers tailored to yours.
  • Small Business Liability.com have created a comprehensive guide to the insurance required before starting a business for each of the specific professions listed below.
  • Our best accounting services for insurance companies include account reconciliation, bookkeeping, tax preparation, etc.

Bookkeeping firms and bookkeepers never fail to use their own vehicles to meet clients, attend conferences, and other important meetings. Failure to get auto liability coverage is bad not only because it goes against state laws but also because it leads to vulnerability from road accidents. If not inadequate work, then work-related accidents might make a client ask for a settlement.

Is Administrative Staff Covered by Medical Malpractice Insurance?

You can get competitive quotes from one or more professional liability insurance companies by completing the form at the top of this page. If you do not wish to purchase coverage now, please leave your policy expiration date on the form provided. When your expiration date is closer, you will be contacted so that you can comparison shop for bookkeepers professional liability insurance at that time. Policies for professional liability insurance for bookkeepers and bookkeeping firms are affordably priced. Your previous claims history and loss experience, staff turnover, financial results and operating characteristics can also affect your rate.

What are common bookkeeping mistakes?

  • Neglecting to save receipts under $75.
  • Failing to track reimbursable expenses.
  • Failing to properly classify employees.
  • Not communicating.
  • Neglecting to reconcile.
  • Not having a paper backup.

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