Are you looking for CIPFA Insurance?
CIPFA insurance is targeted specifically members of the Chartered Institute of Public Finance and Accountancy. And as members should know, professional indemnity insurance is compulsory which means that if you do not have it, you will be unable to complete any accountancy work for any third party. So why exactly is it important to take out insurance and why can’t you make do without it?
Understanding CIPFA Insurance
The main reason insurance is needed for people in this industry is because you are providing a professional service where your advice means a lot to the third party. Due to the fact that your advice and work could potentially make or break a company, it is vital that you protect both yourself and the company with adequate insurance.
Just think; if you do a job and through no fault of your own the company loses money as a direct result of your work, it would not look good. The third party is likely to blame you directly and a claim will be made against you.
It could be that the company did not provide you with adequate information in order for you to make a successful business plan. If you are given the wrong information then you could end up creating a plan that you feel would be successful, yet it will fail because of the information that you were lacking. Technically it would be the third party’s fault, but they could always turn around and blame you claiming that you are the professional, not them. Defending yourself against the claim will cost quite a lot in legal fees and luckily enough professional indemnity insurance can cover that.
Of course the above is just one example of something that could go wrong. If you work in taxation there could be problems with documents going missing or again you could end up with a lack of information and you could find yourself in trouble with the HM Revenue.
Whatever the issue, CIPFA insurance will help to protect you. Generally it will protect you and the third party against defamation, loss of documents and data, negligence, injury and damages and breach of confidence. There are different levels of cover available and so it would be worth looking into what your actual business needs are before you take out insurance.
Comments
Leave a Reply