Understanding CIMA Insurance
Members of the Chartered Institute of Management Accountants know all too well why insurance is essential. Many CIMA members have found themselves facing claims against them for various mistakes and problems that have presented themselves on a job or after a job has been completed. CIMA insurance has helped them to right the mistakes that were made and without it they could have ended up losing their business as well as their reputation.
Why CIMA Insurance is Important
When you become a member of CIMA you will find that insurance is compulsory. It is not something that you can avoid or forget about. Without professional indemnity insurance you will be unable to work in the industry and many third parties will not allow you to work for them if you do not have the right insurance either.
When you realise the importance of CIMA insurance, you will see that even if it were not compulsory, it would still be essential to have. Even the most professional accountants who have been in the profession for years are not immune from accidents or mistakes. You could do a job for fifteen years before something finally goes wrong. The mistake would not even have to be your fault for you to have to pay for it. So being protected against the worst case scenario is definitely worthwhile!
CIMA insurance will help you to pay for claims made against you regarding negligence, injury/damages, breach of confidentiality and defamation to name just a few. If you work in the consultancy sector then it is your job to give the third party a business plan and advice on how to move ahead. If the company follows the plan but it doesn’t work out and they suffer a loss, it is possible that they will solely blame you. Even if the advice you gave was the best that anybody could give and in theory it should have worked, you cannot predict what will happen in business and unfortunately that does mean that you could get the blame for anything that goes wrong.
Overall CIMA insurance is designed to give you the protection that you need in the event of a claim being made against you. It is compulsory for good reason and there are varying levels of insurance that you can choose from so always know what you need before you actually apply.
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