Bookkeeper’s play an integral role in any company. They provide financial reports based on its transactions and accounts, formulate bank reconciliations and analyse all incomes and expenditures. As they work with confidential information concerning the financial records of a business, they could immensely benefit from bookkeeper insurance, providing protection to combat financial loss should any errors be made in their services or if someone was to get hurt.
Types of Bookkeeper Insurance
1. Professional Indemnity Insurance
Professional indemnity insurance safeguards bookkeepers from claims filed against them for any type of negligence that the third party incurs. This could be due to omission of data, errors made in the financial reports, and any general type of carelessness that has led to company problems.
For example, if a bookkeeper were to fail to complete the bank reconciliation on time, the process by which the bank balance according to the books is compared to that of the actual bank records, any fraudulent activities would not be recognised. As a result, records may be incorrect, and consequently, cheques may not be processed, or there may be fees.
This error made by the bookkeeper may result in a claim filed against them, but the money lost due to their error would be recompensated by the insurance company and not the bookkeeper.
2. Public Liability Insurance
Public liability insurance protects bookkeepers from claims that their work injures a client or damages their personal property. This type of insurance is recommended to employees that work in close contact with their clients as it is highly likely that an unintentional accident will occur. There should be a cover put in place to protect both parties involved.
For instance, if a client entered the worksite and slipped on a wet floor, as a consequence breaking their phone and needing medical attention, the insurer would pay for any medical expenses like a hospital evaluation and recompensate them by providing money to repair their phone. These types of accidents can happen frequently, and the costs can stack up, so it is encouraged to acquire this cover.
3. Cyber Insurance
Cyber insurance should be obtained by any businesses that work with electronic devices like laptops and mobile phones. A bookkeeper can keep sensitive information about their clients on their computer, such as addresses and bank details. As a result, if the server is hacked or there is a malware attack, this data could potentially be used in a way that causes the clients financial loss.
Over 50% of businesses in the past have suffered these types of incidents. Cyber insurance not provides the money needed to replace the faulty system but also notifies the customers that their information has been breached, all of which would cost a lot of money, especially if it is a large business.
4. Business Contents Insurance
Business contents insurance protects the valuable items in your office like electronic devices and the not-so-important items like furnishings; nonetheless, everything in your room should be insured so that in the case it is stolen or destroyed, the insurance company can repair or replace it. Additionally, if a fire or flood ruins the content inside the office, they will also be covered.
Bookkeeper devices like computers can be incredibly costly as they are high-tech and valuable, similar to any equipment they may use. All of these items cumulatively add up. It can be detrimental to a business with no insurance to replace them with their own money, money which can be spent elsewhere to develop the business and make it grow and succeed.
Is Bookkeepers Insurance Essential?
The company’s director obtains employers’ liability insurance, a legal requirement stated by the law, should your business hire employees. This policy will ensure that the insurance will cover injuries sustained by the employees in the workplace. So any medical expenses required for treatment, any lost wages in the period that the employees cannot work, and any legal fees associated with the claim are paid for. Especially for larger businesses that work with numerous employees, this can be advantageous to obtain as there is an increased chance of accidents occurring. So the potential financial loss will be higher.
In conclusion, bookkeeper insurance is necessary. Several covers altogether aid a bookkeeper who would otherwise suffer from financial loss, should they inevitably make any errors in their work or be negligent. Likewise, as bookkeepers work with computers daily, it is helpful to be safe against viruses or attacks you cannot prevent, simply for peace of mind.
Read more about what kind of business insurance you need here.
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Public Liability Insurance
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