CIMA Indemnity Professional Insurance
CIMA indemnity professional insurance is compulsory and it is designed to protect CIMA members from losing everything financially. You may not think that anything can go wrong because you are fully qualified and you know what you are talking about, but unfortunately it doesn’t matter how qualified you are – things can, and do, still go wrong.
Preparing for the Worst
If you prepare for the worst then you will never lose everything. CIMA indemnity professional insurance helps you to prepare against claims that could be made against you.
There are a number of situations where a claim could be made against you. Whether you go onto third party premises, work from home or work on business premises; something can go wrong.
It could be that you have lost important documents relating to the third party employees. Or maybe you have talked about the third party to your partner and they have then mentioned it to their friends. Their friends could then tell more people and if the gossip is bad then you could be hit with a claim against you for defamation and a breach of confidentiality.
As an accountant it is vital that you keep everything to yourself because you are dealing with information regarding the company’s finances. It can sometimes be easy to let certain things slip to those close to you. However, no matter how tempting it might be, you really do have to keep everything to yourself if you want to avoid a claim being made against you.
Another way to protect yourself against a claim is to keep documents of everything. Write literally everything down and if possible get the third party to sign the document after the job is completed. This shows that at the time, the third party was happy with the work completed and that everything went smoothly. This will give you a little added protection if the case goes to court and you end up having to defend yourself.
CIMA indemnity professional insurance typically protects you against slander, negligence, damages/injuries, breach of confidentiality and loss of data/documents. It is compulsory to all accountants and it is not hard to see why. Without adequate insurance both you and the third party could end up out of business because of financial loss. So if you haven’t yet looked into indemnity insurance, now would be the perfect time to do so!
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