Accounting Insurance Indiana Policy Information
Accounting Insurance Indiana. 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 Indiana policy. This includes accountants, financial advisers, financial counselors, and other financial-related business owners.
Accounting insurance Indiana protects your firm from lawsuits with rates as low as $47/mo. Get a fast quote and your certificate of insurance now.
What Is An Accounting Insurance Business Owner's Policy?
This accounting insurance Indiana 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:
- Business liability insurance. Financial special and accounting firms need business liability insurance to protect them from legal action when a third party claims they were injured or their property damaged as a result of the business' activities. For example, if a client who comes to your office is injured on the premises during a consult, or if you go to the person's home and cause damage during a meeting, this type of insurance provides protection. It may also help cover the damage that comes from allegations of libel or slander as related to your CPA business. It does not cover any liability that arise directly from the services that you provide, however.
- Business income insurance. This coverage provides you with some level of buffer against the loss of income. When you cannot run your financial services or CPA accounting firm due to property damage that's covered by your BOP policy, this insurance kicks in to provide you with reimbursement for lost income.
- Business property insurance. The premises where you conduct your business should be protected under a business property insurance policy. This policy protects the business' property, including your computer equipment, tools, and business machines, desks, furniture, and other items, from covered perils. This holds true whether you lease or own the property inside your business.
Additional Accounting Insurance Indiana Coverages
Although a accounting insurance Indiana 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:
- Errors and omissions (E&O) coverage. This type of accounting insurance Indiana policy is oftentimes recommended for accounting professionals because it gives you protection from liability due to errors you make in preparing clients' taxes and financial documents or from omissions you make during the process. For instance, if you overlook an expense while preparing a financial statement for a client, and the error results in financial loss and leads to a suit against you, this insurance kicks in.
- Data breach coverage. In today's digital age, data breaches are oftentimes in the news, and perhaps you think you're too small to become a target of information thieves. The truth is that no one is safe from this type of cybercrime, so a data breach policy protects you from the liability claims if the data you store in your files is compromised.
- Valuable papers and records coverage. As a CPA, you store valuable paperwork for clients, including ledgers, bank statements, financial statements, and more. Cover these items with valuable papers and records coverage to avoid the loss incurred when damage from fire, water, and other perils comes into play.
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 Indiana 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.
IN Accounting Risks & Exposures
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.
Indiana Economic Data And Business Insurance Regulations
There are many factors that lead to the success of a business; top on the list of importance is location. In order to thrive, it's essential for a business to be located in an area that offers a favorable economic climate. Regardless of how high-quality the products and services a company offers, if isn't located in an area that will benefit from those products and services, success is going to be a struggle. Furthermore, it's important for business owners to know what type of commercial insurance they are required to carry in the state they are operating in.
If you are thinking about starting a business in Indiana or expanding your existing company to the state, you'll want to familiarize yourself with its economics and commercial insurance requirements before you set up shop. Below, we provide an overview of economic trends and types of insurance coverage business owners need in The Hoosier State.
Economic Trends For Indiana Business Owners
As of January, 2019, the unemployment rate in the state of Indiana was 3.5 percent; .4 percent lower than the national average, which was 3.9 percent at the start of the year. The unemployment rate in The Hoosier State has been holding steady for more than five years, as it has been below the national average since 2014. It's expected that this rate will continue to be the norm for 2019 and the next few years.
All areas throughout the state of Indiana are favorable for business owners, as both urban and suburban areas offer suitable conditions. According to economists, the best areas to start a business in The Hoosier State include:
Several industries thrive in Indiana, but industries that are seeing the most growth in the state include:
- Auto manufacturing
- Information technology
- Life sciences
- Research and design
- Wholesale and retail services
Commercial Insurance Requirements In Indiana
The Indiana Department of Insurance (IDOI) regulates insurance in Indiana. Commercial insurance is vital for the success of a business, as it not only protects the owners and operators of the organization, but it also protects the customers and vendors that a company works with, as well as the employees that they rely on.
Commercial insurance provides coverage for certain risks that businesses face, ensuring that third-parties and employees have access to the funds needed in the event of an accident; it also prevents business owners from having to pay for damages and legal expenses in the event that a catastrophe occurs.
In Indiana, business owners in all industries are required to carry workers' compensation insurance. Depending on the nature of the industry, other forms of coverage may be required. For example, organizations that sell and distribute alcohol must carry liquor liability coverage, and companies that use vehicles in a work-related capacity must invest in commercial auto insurance.
The specific amount of coverage required for these policies depends on several factors, such as the size of the business, how many people it employs, and the specific nature of the operation.
Additional Resources For Professional Services Insurance
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.
- Answering Service
- Attorney Lawyer
- Business Consulting
- Corporate Wellness
- Court Reporter
- Debt Collection Agency
- Detective Agency
- Electrical Engineering
- Environmental Consultant
- Executive, Career & Life Coaching
- Executive Search Firm
- Expert Witness
- Financial Services
- Financial Planner
- HR Consultant
- Mediator - Arbitrator
- Medical Billing
- Music, Drama & Dance Therapy
- Office Machine Repair & Maintenance
- Project Management
- Temporary Staffing
- Tax Preparer
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.
Minimum recommended small business insurance coverage: Business Personal Property, Employee Dishonesty, Accounts Receivable, Computers, Valuable Papers and Records, General Liability, Employee Benefits Liability, Professional Liability, Umbrella Liability, Hired and Non-owned Auto Liability & Workers Compensation.
Other commercial insurance policies to consider: Building, Business Income with Extra Expense, Earthquake, Equipment Breakdown, Flood, Computer Fraud, Forgery, Money and Securities, Special Floater, Cyber Liability, Employment-related Practices Liability, Business Auto Liability and Physical Damage and Stop Gap Liability.
Request a free Accounting Insurance Indiana quote in Anderson, Angola, Auburn, Avon, Bargersville, Bedford, Beech Grove, Bloomington, Bluffton, Brazil, Brownsburg, Carmel, Cedar Lake, Charlestown, Chesterton, Clarksville, Columbia City, Columbus, Connersville, Crawfordsville, Crown Point, Danville, Dyer, East Chicago, Elkhart, Elwood, Evansville, Fishers, Fort Wayne, Frankfort, Franklin, Garrett, Gary, Goshen, Granger, Greencastle, Greenfield, Greensburg, Greenwood, Griffith, Hammond, Highland, Hobart, Huntertown, Huntington, Indianapolis, Jasper, Jeffersonville, Kendallville, Kokomo, La Porte, Lafayette, Lake Station, Lakes of the Four Seasons, Lawrence, Lebanon, Logansport, Lowell and Decatur, Madison, Marion, Martinsville, Merrillville, Michigan City, Mishawaka, Mooresville, Muncie, Munster, Nappanee, New Albany, New Castle, New Haven, Noblesville, North Vernon, Notre Dame, Peru, Plainfield, Plymouth, Portage, Princeton, Richmond, Schererville, Scottsburg, Sellersburg, Seymour, Shelbyville, South Bend, Speedway, St. John, Tell City, Terre Haute, Valparaiso, Vincennes, Wabash, Warsaw, Washington, West Lafayette, Westfield, Westville, Yorktown, Zionsville and all other cities in IN - The Hoosier State.
Also learn about Indiana small business insurance requirements for general liability, business property, commercial auto & workers compensation including IN business insurance costs. Call us (317) 559-0759.