AAT Professional Indemnity – What you Should Know
AAT professional indemnity is compulsory and extremely useful to all AAT members. Ensuring that you are protected financially in case a claim is made against you, professional indemnity insurance has helped thousands of accountants to right any mistakes or problems that have occurred.
What you need to remember is that even if the problem that occurs is not your fault, you could still be forced to pay out compensation to the third party. A number of things can go wrong and you do need to be aware of that when you start your career with AAT.
How Professional Indemnity Insurance Works
With AAT professional indemnity insurance, it covers you in the event of:
- Negligence
- Breach of Confidentiality
- Injury/Damages
- Defamation
The above are just a few of the situations where indemnity insurance can help. Professional indemnity insurance helps to ensure that if a claim is made against you, no matter what the outcome of the claim you will still be protected by your insurance policy.
It could be that you have accidentally lost a third party’s documents and that in turn has caused them to lose money. You would be responsible for paying back that money as well as providing compensation for the inconvenience caused. Another mistake that you could make includes damaging the third party’s property. If you go onto the premises of the company and you accidentally break something, you would be faced with a claim against you.
Obviously as an accountant, it is unlikely that you are going to cause damages when you visit a third party’s premises. However, as unlikely as it may be, accidents do happen and you could end up causing an injury. That is why it is always better to be protected just in case the unlikely were to happen.
As mentioned, AAT professional indemnity cover is mandatory. The very nature of your job puts you and the third party at risk. The third party could lose money because of your advice and you could potentially be out of business if a claim was made against you and you didn’t have insurance.
Overall AAT professional indemnity is essential and it really can help you. Nobody likes to think about what could go wrong in business, but if you were to be hit with a claim against you without any insurance, you could find yourself ruined financially. So it is always better to be prepared and be protected rather than not think about what could happen and risk losing everything.
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