What Is Professional Indemnity Insurance for Auditors?
Professional indemnity insurance for auditors is also known as:
This policy can help cover claims of:
Violation of good faith and fair dealing
This means professional liability insurance helps protect you in the event of a mistake. So, say your auditor doesn’t follow the right duty of care while working on a client’s case. They make a mistake that causes your client to sue you. Without this legal liability coverage, you’ll have to pay out of pocket for the claim, which can cause significant financial losses for your business.
To learn more about professional indemnity insurance for auditors, get a quote
from us today. We can also help you learn more about other important business insurance coverages, like general liability, commercial property or workers’ compensation insurance. We’re an insurance company you can trust. In fact, business owners have counted on us for over 200 years to get the right coverage.
What Are the Liabilities of an Auditor?
Auditors spend most of their time reviewing finances and evaluating numbers. But what happens if they make a mistake? Professional liability insurance can help cover you for scenarios like:
Making a calculation error on an audit, causing a client to have to pay higher penalties. When your client finds out about the error, they sue your firm.
Entering data wrong in an audit, causing your client to face incorrect financial penalties. As a result, your client sues your firm.
Misunderstanding the accounting standards at your firm and rounding data up when they shouldn’t have. This causes numbers to be skewed and your client to have to pay a penalty. After your client realizes this happened, they file a claim against your business.
It’s also important to note that auditors are responsible for known users and foreseeable users of the financial statements they produce. So, if your client’s business uses the financial statements your auditor produces to try and get a loan from a bank, your auditor is still responsible for that information.
You’ll also want to make sure that the auditors at your business practice due care. This is a legal term that refers to you and your team making an effort not to cause harm to your clients. It refers to the level of judgment, care, prudence and determination that your client’s would expect in the services you provide.1
What Other Kinds of Insurance Do Auditors Need?
While professional liability insurance can help protect your firm from claims of errors or omissions in your professional services, it doesn’t help cover claims of:
To get coverage for additional risks like these, you’ll want policies like:
You can also bundle these coverages in a Business Owners’ Policy (BOP)
. These combine business property and liability insurance together. You can then add additional coverages, like your cyber liability insurance or workers’ comp policy. This option for coverage can help you save money and be easier to manage. To learn more, get a quote
What Is the Cost of Professional Indemnity Insurance for Auditors?
The cost of professional indemnity insurance for auditors can vary. Some factors that influence the cost of your insurance include your business’:
Coverage limit of indemnity insurance
Number of employees
Years in service
For instance, if you have a history of claims, you may pay more for coverage than a business without one. You’ll also pay more for coverage if you have a higher limit.
Get Insurance Quotes for Professional Indemnity Insurance for Auditors
The best way to find the right coverage for your small business is to get multiple insurance quotes from different companies. You can then compare them for the most competitive price. To get started, get a quote
from us today. We’re an insurance company you can trust and have helped business owners get the coverage they need at the right price for over 200 years.