Bookkeeping is an important thing in business. If you are dealing with a client, you will need to do so. Likewise, if you have a strict boss, you will also need to do bookkeeping. Because in the worst-case scenario, the other party might sue you. You will need proves for your safe escape.
So if the documents are very important and need so much care and protection, getting professional liability insurance is not a big deal. Instead, it is rather important. Bookkeeping contains the profits and losses and in addition to that, they also have the business statement and financial records.
A very small mistake sometimes becomes deadly. Therefore, there is not a chance of even making an extra or a less 0. For example, you were supposed to pay someone $1000, but instead, the client got $10,000. The company lost $9000, so who is at fault here? They need to find that. If you have the record, you can show them that the mistake is not from your side.
If you are not aware of bookkeepers insurance, you can learn more here. They will let you know about the things that this insurance will cover.
3 insurance options
Bookkeeping also has three different types of insurance. These include;
- General liability
- Professional liability
- Content insurance
You can choose the type according to your requirements. If you need the content to be safe, you can have separate insurance for that.
Why do they need insurance?
Bookkeepers handle a number of various tasks that include;
- Documenting all the financial transactions
- Invoice generation
- Documenting credits and debits
- Being an assistant in general business planning
- Marinating important data and records
- Dealing or assisting with the tax preparations
- Producing the ledgers, accounts and even the subsidiaries and even balancing them
- Providing compliance services
All these factors are of utmost importance. Therefore, the documentation needs to be proper and safe. You cannot risk losing all this data. That is why the only option you are left with is getting an insurance plan for the documents.
Here are the reasons for you to choose such insurances;
1. It will eliminate the doubts
Doubts are everywhere and you need to eliminate them. When dealing with numbers, there is a high chance of making small mistakes that cost a lot. Therefore, you need to be extra careful with that.
You cannot make an extra zero or reduce one. However, fraudsters are everywhere and they can claim it to be your mistake and might sue you. That is why, to prevent a major mishap like a court case and getting sued, you should work with insurance.
They provide you with a cheaper and easy way out. So when it comes to deals that include business finances and bookkeeping, getting professional liability insurance is the best way for you.
2. You will get quick access to a good defense attorney
Usually, people do not hire a personal attorney all by themselves. It becomes a bit expensive and you have to pay monthly to your attorney. Furthermore, he won’t be doing anything other than waiting for something bad to happen to you.
Likewise, if you do not hire an attorney all the time, you will need to find one in a limited time. This might take more time and you suffer more. In addition to this, you will also have to pay him according to his conditions because you need him urgently. And what if he is not good? What if you lose the case? Ultimately, you will suffer a greater loss.
On the other hand, if you get professional liability insurance, you will not only get protection for your important documents but also instant access to a qualified lawyer who will defend you. Your insurer will take care of all these matters and get you your defense lawyer at any minute. Furthermore, he will have all your information so he will be able to defend you in a better way.
3. Makes your job less stressful
You cannot do your job properly if you are under continuous stress. For example, you have to write payrolls for clients. But even before you start the job, everyone around starts telling you about the risks. They tell you that you might get sued if you make a slight mistake. Thus, you will work very consciously to not make any mistakes.
However, with this much stress, you are more likely to make mistakes. Furthermore, things cannot run like this for a long time. Firstly, being this careful will make you slower. So it will take away your productivity. Secondly, doing things like this for a long time will exhaust you. Thus, you will either make a bigger mistake or leave the position or you get sued.
Therefore, to prevent all this from happening, you have one solution. To get professional liability insurance. You can do your job and if someone claims something to be your fault, you will have someone to back you up and support you. Thus, you won’t have to pay a fine or anything like that.
Your attorney will be handling everything. Furthermore, you won’t even pay for the attorney, as the policy will pay for that. Thus, he will help you out by reducing your financial as well as emotional stress.
4. Covers a wide range of risks
Professional liability insurance does not only provides insurance for safekeeping your documents but also for other things. If you are a bookkeeper you might think that this insurance will only deal with the mistakes that you made in your work. They are not going to deal with your mistakes.
On the other hand, they cover the property or other damages that your mistake might cause opt for the third party. So even if you are at fault, you do not have to worry about how to deal with it.