Liability Insurance For Accountants

• To provide all the information required in the insurance policy or any other Form in full clarity
• Pay premiums according to the payment plan as listed on your insurance policy table
• Take all necessary measures to avoid bodily harm, loss or damage and comply with the provisions of the legislation 
• Notify the company in case of change that will increase the level of risk
• Refer to the Company immediately and provide them with full details of the claim in writing 
• Take reasonable precautions to prevent or reduce the claim extension
• Non-acceptance of liability, offer, promise or payment without the written consent of the Company
• Comply with the terms of the insurance policy

The deductible amount is the amount or percentage that is not covered and/or deducted from the amount for each claim separately.

There is a detailed list of coverage limitations in the insurance policy.

The coverage is limited to the address of the insured's and it covers loss of money during their transfer which is valid throughout the Republic of Cyprus. The geographical area in which the coverage is valid for it is specified in the Insurance policy.

Yes, accountants should carry professional indemnity insurance to protect themselves against legal liabilities related to their work. This type of liability insurance provides coverage if a client suffers financial harm due to an accountant's work, and the accountant is found to be at fault.

Yes, accountants can be held liable for tax mistakes made on behalf of their clients. In fact, tax laws and regulations are complex and constantly changing, and tax mistakes can result in significant financial and legal consequences. As such, accountants are responsible for ensuring that their clients' tax returns are accurate and comply with all relevant laws and regulations. If an accountant makes a mistake that results in additional taxes, penalties, or interest owed, the client may have the right to sue the accountant for damages. Therefore, accountants need to carry liability insurance to protect themselves in case of such claims.

Accountants can face a variety of legal liabilities related to their work. Some common examples include:

Professional negligence: Accountants must provide accurate and reliable information to their clients. If they make errors or omissions resulting in financial harm to a client, they may be held liable for professional negligence.
Breach of contract: Accountants may have contracts with clients that outline the terms of their engagement, including the scope of work, fees, and deadlines. If an accountant fails to meet their contractual obligations, they may be sued for breach of contract.

Fraud:If an accountant intentionally provides false or misleading information to a client, they may be accused of fraud. This can result in significant legal and financial consequences.

Violations of securities laws: Accountants who work with publicly traded companies must comply with various security laws and regulations. If they fail to do so, they may face legal liability.

Confidentiality breaches: Accountants are often privy to confidential financial information about their clients. If they breach that confidentiality, they may face legal liability.

Accountants must be aware of these legal liabilities and take steps to mitigate their risk, such as carrying liability insurance and following professional standards and best practices.