Accountants can always obtain liability insurance in Chandler, AZ, but is it necessary? Unfortunately, it’s not a straightforward answer. Several factors determine whether you need liability protection. 

Business Model

Accountants who work for a business or larger firm may not need personal protection. Businesses often obtain insurance policies that extend to individual accountants. An accountant in the business is also unlikely to be sued. Instead, most people will sue the business they work for. Ask your supervisor or business owner if you’re protected under their policy. 

However, if you do accounting on the side to earn some extra cash, you may need professional liability protection. People can sue you if you make mistakes, even if you’re just filing their taxes for them. An audit because of a simple typo is grounds for a lawsuit for pain and suffering or emotional damages. 

Liability Protection

These policies provide a necessary safety net for accountants. People can sue you if you give inaccurate advice or make a mistake, or they feel you aren’t acting in their best interest. A lawsuit can damage your reputation and, without adequate protection, leave you in financial ruin. One massive lawsuit is all it takes to bring a business to its knees. 

This type of insurance is also called errors and omissions Insurance. It protects you from financial damage due to innocent mistakes, such as typos. An agent at San Marcos Insurance Group can explain more. 

Here at San Marcos Insurance Group, our agents understand that coverage can be complicated. We’ll discuss your situation and business model with you to ensure you’re protected. Contact us when you’re ready to get started. We’re currently serving the Chandler, AZ, area.