Many people struggle with getting work and not having enough income, so one of the best ways to solve this problem is to get more clients. The best way to get more clients is by providing a great service to your current client base. In this article we will show you how to do just that and get more work as well as how to keep your client base happy with a Bookkeepers Liability Insurance.
What is liability insurance for bookkeepers?
If you’re working as a Bookkeepers, you may feel you could potentially end up being sued if your client was injured, dies or files a lawsuit against them, Liability insurance covers your clients for any type of legal claims that come to fruition.
If you provide a service like accounting, payroll or tax services, your clients are required to have insurance coverage for your service. Whether they don’t have insurance or can’t afford to pay the premium for the insurance, then the responsibility is on the account holder to take care of the situation.
Types of liability insurance policies
You may purchase general liability, professional liability, and auto liability policies. These are the three types of liability insurance that are most commonly used.
General liability insurance provides protection against claims filed against you for bodily injury or property damage. You may be liable for injuries to your employees, customers, clients, or others who come in contact with the work you perform.
The insurance provides protection for anyone you employ. You must be able to demonstrate that you have taken all necessary steps to protect your employees. For example, you must provide them with safety equipment and training. If you do not, your insurance will not cover them.
You must also have professional liability insurance if you provide services for a fee. Your professional liability insurance must cover you for errors or mistakes that occur in the practice of your profession. This includes acts, errors, or omissions that you commit as an agent, employee, partner, shareholder, manager, consultant, attorney, contractor, or subcontractor.
For example, your doctor may be sued for malpractice. Or your accountant may be sued for negligently preparing financial statements. Any claim against your business is covered. Your professional liability policy covers the costs of defending yourself from claims filed by your patients or clients. The purpose of this insurance is to prevent you from having to pay for the costs of the defense.
Your vehicle is considered to be an automobile. Auto liability insurance provides protection against claims filed against you for bodily injury or property damage you cause to your employees, the public, or others who come in contact with your auto.
This policy covers you for negligence or error committed by yourself, your employees, or the members of the public whom you let drive your car. You must insure your employees and other drivers when you let them use your vehicle.
For example, a child may accidentally hit a pedestrian when your car is in motion. This accident would normally be covered under a personal auto policy. However, if the pedestrian is injured because of your actions, then it is covered under an auto liability policy.
The most common policies are
Workers’ compensation is compulsory in most states. This policy will pay workers if they are injured in an accident on the job. Your employees must meet certain qualifications to be eligible. Workers’ compensation is paid to your employees for medical treatment and lost wages.
This policy protects you from claims filed by people whose rights have been violated by your business or its employees. This may include claims filed against you by employees, the public, or others who come in contact with your business.
Commercial property coverage protects you from loss due to your negligence in the maintenance or use of your business premises.
What does Liability Insurance Cover?
Liability insurance can cover a wide variety of issues:
Physical damage to others
This would include bodily injury and damage to property. For example, an insurance company might be able to provide money to compensate you if someone gets hurt while working at your place of employment.
Employment related accidents
This includes worker’s compensation claims, as well as claims relating to discrimination or sexual harassment.
Negligent hiring claims
Some business owners use hiring as a way to get rid of undesirable employees, which can lead to workplace accidents. This can include situations where someone gets hurt at the hands of their boss or coworkers.
Product defects and injuries
Product defects, such as the failure of an item, and injuries that stem from the misuse of a product are covered under this type of liability insurance. For example, if a piece of equipment malfunctions and causes injury to someone, the policyholder is obligated to pay the victim’s medical costs and any resulting damage.
Losses due to crime
This policy is meant to protect people from crimes, including theft, fraud, and even kidnapping. For instance, someone could get kidnapped in the parking lot of your place of business and be taken somewhere against their will. The insurance company will typically pay for the cost of their legal defense, which could include the expense of hiring a private investigator or a specialist to track down their abductor.
If someone is hurt at your place of business, the liability insurance policy will reimburse you for medical bills. However, there are specific situations where the insurance company will not be able to pay medical bills, such as a death caused by negligence.
How can you protect yourself?
If you are working as a bookkeepers and are not sure if your clients have liability insurance coverage, then you should contact your insurance agent or the agent that sold your policy. This would be an ideal time to ask for a copy of your client’s policy.
Your client may be covered for their medical expenses or lost wages. It also covers all damages caused to your client or property owned by the client. Your liability coverage should cover you and other employees of your company. If your employee’s car is involved in an accident and the client has liability coverage, your coverage will pick up the remaining portion of the bill.
The reason we mention the possibility of your car being in an accident is because this can be dangerous. If you drive a company car, you are responsible for your clients’ medical bills, damages, and attorney fees and court costs. Your company is also liable for injuries your client might cause while driving your vehicle.