Why Accountants Need Errors & Omissions Insurance for Handling ERC Claims
Let’s talk about why Errors & Omissions Insurance is essential for accountants who handle sensitive financial tasks for their clients, especially those who assist clients with Employee Retention Credit (ERC) claims. The IRS has put a stop to processing new ERC claims, and it’s estimated that up to 95% of these recent claims may be considered invalid. This can become a serious problem for you. Here’s why having an E&O’s Insurance can be a lifesaver for an accountant like yourself:
- Protection Against Mistakes
Even with the best of intentions and practice, an expert professional can make a mistake. The ERC amount is likely miscalculated, or the rules are misunderstood. This could inevitably cost your clients a handsome amount of money – and you are responsible for it. Your E&O insurance would cover these errors, protecting you from legal troubles and financial losses.
- Financial Safety Net
In a case where your client claims that you made a costly mistake, your E&O insurance would pay for the legal fees and settlements. This coverage helps in keeping your finances secure, and your business running smoothly.
- Keeping Up with Changes
The ERC rules can often be altered, and that is where you need to stay updated to help your clients make the right claim. But if you’re not, your E&O Insurance would give you peace of mind, knowing you’re fully covered – in case you missed a rule change.
- Building Trust
Not only does your E&O Insurance protect you financially, but it also creates an image of you as a responsible accountant – according to your client, you’re doing a great job and can fix any mistakes quickly!
If you’re helping your clients with ERC claims and other financial matters, Errors & Omissions Insurance is nothing less than a smart investment, protecting both your business and clients – making you capable of handling any challenges that come your way with a safety net to protect you.
Get your E&O Insurance today, with Professional Liability Insurance Group. We ensure your peace of mind, so you can focus on what you do best!
Call or Text us at 1 (877) 754-4123
