Common risks in bookkeeping profession
Book keeping is a lucrative career that brings good annual turnover. Bookkeepers insurance cover is prepared for individual accountants or book keeping firms with a number of employees. The risks below facing book keeping profession call for an urgent need of an insurance cover:
Errors and omissions
In book keeping profession, you deal with financial figures. Miscalculations occurring from errors or omissions may lead to emotional suffering, loss of jobs and financial loss to your client or employees in client’s firm. If it is established that in deed you made a mistake in accounting, you are held liable.
As a book keeper, your client depends on your reports and advice when making important financial decisions. Though you are an expert, this poses great risk for in your career as errors in the report will definitely result in erroneous advice. This leads to flawed decision making process with undesirable outcomes. In this case, you are held accountable for the financial loss and sufferings.
Book keeping is a sensitive career that exposes you to malicious claims. In most cases, this occurs when book keeping for a client owning a large firm with several employees. Individuals in your client’s firm may decide to manipulate documents and situations, to cover up fraud. Proving your innocence in court may be a tedious and expensive process that depletes your savings, considering that you may be out of the job by the time of defence.
Benefits of a bookkeepers insurance policy
Bookkeepers professional liability policy is essential for every individual accountants and book keeping firms. The policy cover brings the following benefits:
Opens up job opportunity
Bookkeepers professional liability opens up great job opportunity. Larger firms tend to make this insurance cover a requirement for you as an individual or your firm to handle their financial records. Therefore, applying for this insurance cover gives you an edge to work with prominent clients who add significant value to your career.
Protects your earnings
A professional liability cover protects your hard earned money, from claims amounting to millions of dollars. The policy provides compensation on your behalf for errors in handling your clients’ financial records. This saves your company from going under should your employees be sued for miscalculations in bookkeeping.
Covers professional negligence claims
Bookkeepers insurance provides compensation for claims associated with professional negligence and flawed advice provided to the client.