Risk is a fact of life in business. There are basic risks that apply to every business, but certain industries face unique risks in their field. Accountants, tax professionals, and audit firms, for example, all gather, process, and store sensitive client data. But they don’t just crunch numbers. They must also contend with individual and corporate clients who may be anxious or worried about tax liabilities, a myriad of federal and state regulations, increasingly dense and ever-changing tax codes, and immovable deadlines that can ratchet up the stress factor and make for very long workdays (and nights) at certain times of the year.
Accountants collect and store more sensitive personal information on their clients than most any other business. A data breach that causes exposure of client information could lead to damage claims, compliance costs, loss of business, and damage to the firm’s reputation that may take years to rebuild.
Accounting firms are expected to be close to perfect in their performance because major mistakes can lead to penalties, back taxes, and IRS audits. Your firm could be held accountable for damages as well as litigation costs, and future insurance premiums could be affected if the firm is found to be at fault.
Accounting firms must protect their facilities from damage due to severe weather, electrical outages, and criminal break-ins. In addition, the expertise of the staff is likely the business’s most valuable asset, which can be protected by comprehensive employee benefit insurance coverage.