The profession of an accountant involves the risk of making errors, not only in maintaining financial records. Make a mistake in a claim submitted on behalf of a client or fail to present it on time. The financial consequences will fall on you—checkin which situations the insurance can take over this responsibility.
In this article, you will learn:
Insurance is divided into two categories - mandatory and optional. This means some policies must be purchased, while others can be chosen voluntarily.
If you work in accounting and must maintain financial records as a service, you must have professional liability insurance for your accounting office. You can extend it with selected add-ons - we will provide more information about them in the next part of the text.
Important! At Leadenhall, mandatory professional liability insurance for accountants complies with current Polish law regulations. It covers the maintenance of financial records for financial purposes with a limit of up to 10,000 euros per occurrence.
Mandatory insurance protects you and your employees against damages arising from the provision of accounting services. In this case, making an error can prove to be exceptionally costly.
The scope of coverage provided by the insurance depends on many factors, primarily the insurance company and the chosen policy variant.
Using the example of Leadenhall Insurance policy, we will present the available options within professional liability insurance for accountants. You have five sections to choose from:
covers the aforementioned mandatory insurance.
includes professional liability for maintaining records for tax and accounting purposes, expanded to have insurance for defence costs and criminal-fiscal proceedings, breach of confidentiality, defamation or insult, liability within joint ventures, and loss of documents.
pertains to advisory services in social insurance and other personnel-related advice.
covers insurance costs in the event of personal criminal-fiscal liability of the insured.
encompasses liability insurance and administrative proceedings costs for cyber damages and violations of the GDPR.
Below, we present a list of the most frequently reported damages covered by professional liability insurance for accountants.
The insurance is helpful if, due to your delay in submitting an application or making an error in calculating the contribution, the client loses the possibility of exemption from social insurance contributions based on crisis shields.
Similar to the above, if the client loses the opportunity to receive subsidies from the State Fund for Rehabilitation of the Disabled due to your negligence in timely applying.
The policy will cover the costs of interest and other potential financial consequences for the client if, for example, the accounting office fails to deliver the VAT registration declaration on time after exceeding the sales value limit.
The accounting office must cover the financial losses incurred by spouses due to the necessity to file a correction to the joint PIT declaration. In such a situation, they lose the opportunity for joint settlement. The insurer can also assume responsibility for this.
Remember! If you doubt the policy will apply in a specific situation, contact an insurance agent to clarify it.
In conclusion, we have gathered the most essential information regarding the Leadenhall Insurance offer for accounting offices in one place.
Now you know what professional liability insurance provides for accountants. If you are interested in this offer, please contact us.
