Accounting Insurance Illinois. If you work as an accountant, CPA or financial specialist, then a business owner's policy or BOP policy is an essential part of doing business. This type of policy protects your business from liability and financial fallout caused by liability in a similar way that a homeowner's policy protects your home residence and the home's contents. BOP policies are relatively inexpensive and a part of the cost of operating an accountant business.
Accountants handle clients' financial records. Services are provided to the general public, a specific firm, or group of client firms. The accounting operation may provide general financial services, or specialize in a specific area such as taxes, real estate, or investments. An accounting firm may or may not carry the Certified Public Accountant (CPA) certification. The need for the CPA certification depends on the type of work the accountant will provide and the purpose or type of financial statements the accountant will prepare for the client.
If a CPA certification is required, the accountant must have knowledge and experience in working with generally accepted accounting principles (GAAP) or statutory accounting principles (SAP), depending on the client. Some accountants may also act as financial planners and offer investment advice. Due to the varied areas of knowledge or expertise needed for these activities, the background, education, certification, experience and professionalism are items to consider.
BOP policies combine several basic coverage types into one policy that provides your business with the protection it needs from potential perils and liabilities. Most small accounting businesses and people doing business in the financial services realm should own a accounting insurance Illinois policy. This includes accountants, financial advisers, financial counselors, and other financial-related business owners.
Accounting insurance Illinois protects your firm from lawsuits with rates as low as $47/mo. Get a fast quote and your certificate of insurance now.
This accounting insurance Illinois policy can safeguard the business that you have established and spent your money and time to build. The standard BOP policy offers three basic coverage types, including:
Although a accounting insurance Illinois policy is a good place to start when considering CPA business owner's policies for your small business, there are other optional accountant insurance coverage types to consider. Work with your insurance agent to determine the suitability of these common policies for your business. Your commercial agent might recommend some or all of the following:
In addition to these industry specific coverage types, you may need other types of insurance for your accounting business that are not mentioned above. For instance, worker's compensation insurance provides insurance for employees when they become injured on the job. Commercial auto insurance provides insurance for any company vehicles used in the course of going to client job locations or meetings.
If you are running your CPA business from your home, then home-based solutions for your accounting business insurance can protect you from personal loss. In some cases, a business owner's policy is all that you need to fully protect your business, but a more extensive policy may also be recommended. Some home business owners rely solely on their homeowner's policies to protect them while doing business, which can be a foolhardy choice, since most homeowner's policies specifically state that they don't cover such activities. Work with an agent to determine if your home accounting business needs a business owner's policy or additional coverage types to be fully protected.
Whatever your situation, choosing an accounting insurance Illinois policy that meets your needs is a move in the right direction. Work with a licensed agent with experience in business insurance to find the right level of protection for your specific firm's risks.
Professional liability exposure is extensive. Working with individual clients presents fewer professional exposures than working with corporate clients. The exposure increases if the firm fails to conduct thorough background checks to verify employees' credentials and education, if clerical workers are allowed to do tasks that only professionals should handle, or if error checking procedures are ignored or are inadequate. Very serious losses may result from failure to document decisions and actions or to secure client approval.
Premises liability exposure is often minimal since most client contact is done electronically or by mail. If clients visit the premises, they must be confined to designated areas so that they cannot view or overhear conversations regarding other clients' confidential information. To prevent slips, trips, or falls, all areas accessible to clients must be well maintained with floor covering in good condition.
The number of exits must be sufficient, and be well marked, with backup lighting in case of power failure. Parking lots and sidewalks need to be in good repair with snow and ice removed, and generally level and free of exposure to slips and falls. Off-premises exposures arise from sales visits, training sessions, and physical audits at the customer's premises. There should be policies and training as to off-site conduct by employees.
Workers compensation exposure is generally limited to that of an office. Because work is done on computers, potential injuries include eyestrain, neck strain, carpal tunnel syndrome, and similar cumulative trauma injuries that can be addressed through ergonomically designed workstations. Some accounting firms have significant off-site work for audits, training and similar activities. Workers can be injured by slips and falls at clients' premises or in automobile accidents.
Property exposure is generally limited to that of an office, although there may be some incidental storage or an area for meetings. Ignition sources include electrical wiring, heating and air conditioning systems, wear, and overheating of equipment. Computers and other electronic equipment may be targets for theft.
Crime exposure comes from employee dishonesty, which can be quite serious as accountants and their staff have access to clients' financial information such as bank records and investment accounts. Potential for theft, directly or by means of identity theft, is great. Hazards increase without proper background checks, along with monitoring procedures and securing of all records to prevent unauthorized access.
All job duties, such as ordering, billing and disbursing should be separate and reconciled on a regular basis. Receipts should be issued for any cash payments received. Bank deposits should be made on a timely basis to limit the buildup of cash on premises. Audits should be performed at least annually.
Inland marine exposures are from accounts receivable if the firm offers credit, computers and valuable papers and records for customers' information, which may be originals that are difficult to re-create. Power failure and power surges are potentially severe hazards. A morale hazard may be indicated if the insured does not keep valuable papers and disks in fireproof file cabinets to protect them from smoke, water and fire. Duplicates should be kept off site to allow for re-creation in the event of a loss.
Business auto exposure is generally limited to hired and non-owned. If vehicles are provided to employees, there should be written procedures regarding personal use by employees and their family members. All drivers must have appropriate licenses and acceptable MVRs. Vehicles must be maintained and records kept in a central location.
For moguls who are thinking about conducting business-related affairs in Illinois, it's important to have an understanding of the state's economic outlook. It's also a wise idea to familiarize yourself with the regulations regarding IL commercial insurance.
Here we provide some insight regarding the data that pertains to economy of Illinois. We also provide a brief overview about the types of commercial insurance coverage business owners are required to invest in, or should invest in, even if it isn't mandatory.
According to several reports that compile the economic data for each of the 50 states and compare that information to the national average, Illinois isn't in the best position. While there has been some improvement, the gains have only been slight. Income and employment rates have risen, and the housing market has increases; however, the gains in these areas have been minimal, especially when compared to the gains that other states have experienced.
While the unemployment rate has improved, falling to 4.8 percent in 2017 after it was stuck at a rate of almost 6 percent in 2016 and 2015, it appears that in reality, the IL labor force and employment gains are contradicting. In 2019, tens of thousands of people fell out of the state's labor force.
Looking to the future, it is predicted that while the employment rate in Illinois will grow, the rate at which it will grow will be much lower than the national average. Currently the projected annual job growth of the state is .5 percent. Following are some of the largest industries in IL.
The Illinois Department of Insurance regulates insurance in IL. Businesses are required to carry workers compensation insurance. Workers comp is mandatory for any business that employs either an hourly or a salaried workforce, even if that workforce is just one person. Organizations are also required to carry IL commercial auto insurance if they use vehicles for any business-related reasons, such as deliveries, transport, or client visits.
General liability insurance is not required, nor is commercial property insurance; however, it is a wise idea for companies to invest in this type of coverage, as it will safeguard from lawsuits or losses that their properties could sustain.
Get informed about small business professional services insurance, including Professional liability, aka errors and omissions (E&O insurance), that protects your business against claims that a professional service you provided caused your client financial loss.
Let's face reality. People today are claims conscious, resulting in a significant share of malpractice lawsuits against professionals.
Liability resulting from the rendering of or the failure to render professional services is excluded in most liability coverage forms. This means that a policy covering a account's or lawyers' office will cover liability arising out of the maintenance or use of the premises, but specifically exclude liability arising out of the rendering of a professional service or the omission of such a service.
In addition to the professions in which actual physical or mental injury may be caused to clients, certain other professions are exposed to claims for malpractice.
Claims may be brought against lawyers, accountants, architects, and similar professional persons for errors or omissions in their professional capacity. Errors & Omissions insurance pays damages that might be awarded to a plaintiff alleging professional negligence.
Professional liability policies are made available to such risks, and these policies provide essentially the same protection as is afforded under the physicians, surgeons or dentists professional liability policy.
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