Management accountants are responsible for many duties including managing risks, budgeting, and planning. You’ll need to develop strategies that will work exceptionally well for your clients. Whether you’re dealing with company owners, managers, or a board of directors, you’ll want to do your best to provide them with high-quality, effective results. Otherwise, your management accountant firm is going to cause its clients to lose money. A financial loss blamed on your company might result in a lawsuit being filed against your accounting firm.
Can you fix this problem without letting it ruin your business? Below, you’ll learn more about management accountant insurance and its benefits.
What Is Management Accountant Insurance?
What is management accountant insurance? This is another name used to describe professional liability insurance. Management accountant insurance or professional liability insurance covers professional liability lawsuits. Whether you’ve made a mistake or omitted a fact, you might cause your client to lose money. If this happens, a lawsuit will be filed and you’ll need to work diligently to solve this problem immediately. Having management accountant insurance allows your business to combat erroneous and legitimate professional liability lawsuits.
What Is Covered By Management Accountant Insurance?
Now, you’ll want to find out what your insurance policy will cover. While management accountant insurance won’t protect against claims of personal injury, it is equally important as general liability insurance. Management accountant insurance or professional liability insurance provides protection from claims of neglect, omissions, and errors. In some cases, your client misunderstood your services. You explained them carefully but your client thought they would get more. This won’t happen and it could anger your client. This might lead to a lawsuit being filed against you.
In addition to this, you have to make sure that you don’t make clerical errors in emails or invoices. Your information needs to be accurate and reliable. A clerical error could cause your client to lose money. Expect a lawsuit if this happens. These issues and more are covered by management accountant insurance.
When Can You Use Professional Liability Insurance?
You can use your professional liability insurance policy when you’re used for professional liability problems. When this happens, you’ll want to use your professional liability insurance to defend yourself and avoid a hefty settlement. So, when can your client file a lawsuit against you? While it depends on the situation, the plaintiff will want to make sure that they have a case before filing a lawsuit against your company. For instance, they may claim that your work did not live up to the industry’s professional standards. In addition to this, the plaintiff must suffer damages and claim that your work caused those damages.
If the situation meets these qualifications, a lawsuit could be filed by your client.
Understanding Management Accountant Insurance Limits
When you sign up for management accountant insurance, you need to know more about the limits of your policy. Management accountant insurance will have two limits. Your policy is going to have a per occurrence limit and an aggregate limit. Both limits are very important when you need to use your insurance policy to defend your company. An aggregate limit is an amount you can spend for all claims during the policy period. The per occurrence period is the amount you can spend on each claim.
Many management accountants will be okay with a $1 million per occurrence and a $2 million aggregate limit. Speak to your insurance agent to find out what works best for your company.
How Do You Sign Up For Management Accountant Insurance?
It is time to sign up for management accountant insurance. This won’t be too difficult but you’ll need to find a good insurance agent. Canada is overrun with excellent agents but only one is going to serve your company best. With that being said, you need to research your options extensively before picking an agent. You should contact ProfessionalsCoverage. This company can help you find a reliable broker in your area.
Important Insurance For Management Accountants
Finally, you should know that you’ll need more insurance policies. Signing up for general liability insurance is wise since it protects from claims of property damage and personal injury. You’ll also want to acquire business contents, business interruption, and cyber liability insurance. Build a comprehensive insurance policy with multiple products so your company can defend itself from all potential problems.
You biggest asset in life is your earning ability. If you are unable to work, you will need to rely on either your savings or borrow money to sustain your lifestyle. When these unfortunate circumstances occur, dependents and spouses are also impacted financially and emotionally.
Disability insurance coverage will provide you a monthly income benefit, usually totaling 70% to 80% of your income, when you are unable to work for a period of time due to injury or illness.
Types of disability insurance
- Long-Term Disability Insurance (LTD)
- Short-Term Disability Insurance
- Key Person Disability Insurance
- Self Employed Disability Insurance
- Mortgage Disability Insurance
- Temporary Disability Insurance
- Supplemental Disability Insurance
Need coverage in effect? Compare the market!
FAQ before purchasing liability insurance
- How much professional liability insurance do I need?
- How do I get a liability insurance policy?
- What does professional liability insurance cover?
- What is the difference between claims made & occurrence form of coverage?
- When will I need to be insured?
- What other professions need this type of insurance?
Other useful posts you should also read
- Canadian insurance companies that provide professional liability insurance
- How does the claims process work if I get sued because of my professional services?
- What is the cost of professional liability insurance?
- How do I apply for a professional liability insurance policy?
- How do I qualify for coverage as a professional service provider?
- What is the purpose of getting insured as a professional?
- How long will it take to get an insurance quote for my business?