Some companies that offer accounting business insurance include prior acts coverage. The first step to deciding whether you need this type of coverage is figuring out what it does. After you have a good idea of how it works and why you need it, then it’s time to contact your agent and discuss how to implement it in your policy.
There are plenty of situations in which this type of insurance is beneficial, even in small businesses. For example, say youre an individual accountant or you run a small firm and youve recently done a cost-benefit analysis of accounting business insurance. Youve decided that you’re better off with better coverage, and now you want to get covered as soon as possible. If you’re unaware of any errors in the work you’ve done up to the point when you start coverage, you could be eligible for a policy without a retroactive coverage date, or one set before you started.
How does it work? This type of insurance policy applies specific protections for things you might have done before you held your current policy. There are also usually some requirements for you to be eligible which your agent will be able to share with you when you start discussing coverage. The main point is that accounting business insurance is a good way to reduce the risks associate with accounting practices, sometimes even before you start carrying the policy.