Auditor Insurance
A Certified Public Accountant(CPA) verification for an auditor isn’t a necessity, and it mostly depends upon the customer and the sort of job the auditor provides. Reviewing and verifying customers’ statements require the auditor to meet specific accounting standards.
Possessing an auditing company requires specialized education, certification, and prior experience of an auditor. Auditor insurance is essential to protect your business from the financial devastation caused by lawsuits.
Cost of Auditor Insurance
The price of a typical general liability insurance policy for a small auditor business is dependent upon the location of the company, the size, the sort of audits done, earnings, expertise, and claims history.
Why do auditors need insurance?
Managing other people’s finances has certain risks. These dangers can cause financial harm to your business. Below are some situations that might result in potential damage to your business. An investigation may find errors in your findings while auditing a client’s financial records, or a company you audited might not comply with specific requirements. Such incidences could lead to fines or lawsuits for your auditing business.
Being suitably insured protects your business, workers, and the reputation of your business.
Types of Insurance for Auditors
Also known as errors and omissions, this policy insures mistakes and errors that you might have missed or committed. For instance, a client can sue for a mistake made while auditing the business enterprise. Professional liability insurance covers their legal fees and compensation that you’re liable to pay the customer.
Commercial General Liability
This policy covers third-party bodily injury claims and property damage. For example, a client can trip and fall while in your offices and sustain injuries the policy covers medical costs and legal fees in the event the client files a lawsuit.
Commercial Car Insurance
An auditor’s job demands movement from one place to another to fulfill customers. If you’re involved in an accident, the commercial auto policy covers damages to the car and third-party house you may have damaged.
Workers Compensation
If you have employees in your auditor company, it is a necessity to take this coverage. It covers your employee’s medical care and wages lost if they maintain a work-related injury or illness.
It is essential to speak with a reliable insurance agent to be aware of the coverage needed for your industry.
