3 Benefits to Using Accountant Prior Acts Coverage
Even the most successful accounting firms may have had a lousy deal occur sometime in the past. This is why accountant prior acts coverage is essential to any accounting firm, even ones with an unblemished track record. Past claims can still come up, causing potential harm to your business. Here are three benefits to having prior acts coverage.
No Retroactive Date
This type of liability insurance doesn’t have a retroactive date, ensuring that even past mistakes are covered. Since most accounting firms’ daily operations include diligence and acute attention to detail, this claims-made policy prevents any past hiccups from slowing business down.
Acts as a Backstop
This insurance coverage also acts as a backstop or protective component against new claims from past errors. You can protect your firm and rest assured knowing that unexpected costly legal issues won’t prevent company growth and progress.
Lower Financial Loss
Most account firms anticipate negotiating some past claims, but accountant prior acts coverage helps minimize additional financial loss due to mitigation or other legal claims. With prior acts coverage, you can also avoid having to purchase an extended reporting period policy.
It never hurts to be too careful when it comes to protecting your assets and company. This insurance coverage is one way to have peace of mind knowing your firm is covered even if past claims arise.