As an accountant, you likely understand that you could face issues with things such as data entry, incorrect tax advice, failure to meet deadlines or a number of other factors. Whether these acts are intentional or unintentional, you face legal risks for even a perceived error or omission. While the only foolproof way to protect yourself financially from a damaging malpractice claim is to purchase the right type of Orlando Accountant professional liability policy, if you are aware of the common reasons for claims there may be risk management steps you can take on your own. We’ve listed a few common claims here.
Failure to meet standards. This is a fairly common cause of accountant malpractice. For example, if your accounting firm is providing services for a company, and that company endures significant financial damage due to a decision made by the firm, you could be sued for failure to meet standards.
Marketing in an engagement letter. While sending an engagement letter outlining the services you will provide to your client may seem like a good idea in actuality, doing so could lead a client to potentially mistake the message for a service that is included. Failing to complete the services in the marketing message could lead to confusing and could even result in a malpractice claim.
Disengaging from a client hastily. Generally, it’s recommended that accountants give their client a specific period of time to find another tax professional before fully pulling out of the relationship, no matter if the client has been difficult or you have another conflicting reason that you need to disengage.
Failure to follow legal guidelines. Accountants who handle the sales of securities are subject to federal and state regulations. Not following these regulations could lead to significant problems. One example of this is creating a false financial statement to make an impact on the stock market.
With the numerous liability risks you face as an accountant, it’s easy to see how you would benefit from an Orlando Accountant Professional Liability policy. This coverage can help prevent your business from going under due to financial damage from a malpractice claim. At Newman Crane, we understand that as a professional, your services benefit people on a daily basis. We provide coverage for claims made against professionals as a result of a negligent act, error, or omissions in the performance of professional services. For more information about this and our other Orlando Commercial Insurance policies, please contact us at (407) 859-3691.