Business Insurance for Accountants and Financial Service Providers

Choosing a Small Business Financial Services Business Insurance Policy

From accountants to bookkeepers to credit counselors and tax preparers, all businesses that provide financial services need coverage that will protect them from the unexpected and help keep their businesses afloat in case of an unexpected event. After all, it’s not just crashes and busts that can create chaos in the financial services sector. Here are a few scenarios you could face:

• A pipe bursts in your office and soaks your filing cabinets. Now you’ve got to figure out how to restore soggy, undecipherable financial documents and continue to complete client work that relies on those records.
• A longtime employee quits, and you discover a trail of deceit and embezzlement going back years. This once-trusted team member had been forging checks and stealing from the company.
• A fire caused by faulty wiring destroys your office in the middle of tax season. You’re forced to temporarily shut your business while you rebuild, and the ill-timed interruption costs you tens of thousands of dollars in lost work and valuable records.
• A thunderstorm causes a lightning strike that fries your computers. You lose thousands of dollars worth of equipment, along with important data and media.
• A cybercriminal targets your business and steals a cache of customer identity data. To get to the bottom of what happened, you hire a forensic investigator, retain a PR firm and offer free credit monitoring to your clients.

Shield yourself from professional liability. You’re good at what you do, but even with the most conscientious efforts, mistakes can happen. You may want to consider adding professional liability coverage. It will protect your business if a client claims damages as a result of a mistake you made in delivering your services and decides to file a lawsuit. The costs to defend yourself can be significant.

Prepare for litigation. In today’s increasingly litigious environment, financial services providers need to consider how to protect their business from potential lawsuits. For example, Travelers’ Employment Practices Liability+^℠ (EPL+) coverage helps to pay your legal costs and potential damages if an employee files a claim for discrimination, harassment or wrongful termination.

Protect your employees with Workers Compensation coverage. If you have employees, or even temporary workers you bring on during tax season, you may be required to provide workers compensation coverage. Even if it’s not required, it’s worth considering as a way to help protect you and your employees.

Consider commercial auto. A single-car accident can make a serious financial impact. If you use one or more vehicles for your business, you may also need commercial auto insurance. If your business owns vehicles, a commercial auto insurance policy can provide valuable financial protection to you and your employees while driving a company-owned vehicle. It’s important to know that a personal automobile insurance policy usually does not cover vehicles used in the operation of your business.

Consider coverage for non-owned vehicles. Consider coverage for autos you rent or don’t own that are used in your business. In the event of an accident, coverage for hired non-owned autos can provide protection for damages that would not be covered under your policy.

Add coverage for a rainy day. As a financial services provider, you’re well aware of the importance of preparing for the unexpected. Umbrella insurance provides an additional layer of financial protection over and above the coverage limits of your other liability policies. For example, Travelers offers an umbrella policy with up to $25 million in additional liability coverage to cover the costs of a covered loss.

Need advice tailored to the specific needs of your financial services business?

We can help you with all your business insurance policies and questions.

Please feel free to contact us!

Call us Monday-Friday 9-5 pm at (631) 629-4360 or email us at info@lagrangecorp.com.

We are located in Melville, Long Island, New York. We serve New York, California, Connecticut and New Jersey.

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