The responsibilities of tax accountants in Canada include preparing and filing annual return submissions for individuals and businesses. Because of the nature of this profession, it is not uncommon for unintentional errors or omissions to slip by unnoticed, especially during the busy tax season. In certain cases, these mistakes can take the form of missed deductions or misfiled paperwork. If you are a Canadian tax accountant diligently processing your client’s tax returns, you are likely aware that a simple mistake could have a large financial impact on your company and maybe even your personal income and savings. Preparing for possible errors and omissions by protecting your assets is a necessary step any responsible tax accountant should take.
Why should you be prepared? Imagine one of your clients brings you to court, claiming that they had to pay extra taxes and late penalties because you inadvertently missed a large deduction and filed their tax return just past the deadline.
There are two possible outcomes to this scenario. The first outcome entails having to shoulder the entire financial burden by yourself; all the legal costs and court awarded settlements would be paid out of your pocket. The second outcome entails having your defence costs and awards covered by EasyCover. More specifically, by your professional liability insurance policy.
It may seem as though the circumstances detailed above could never happen to you, but you’d be surprised to learn it’s cheap and easy for one of your clients to file in small claims court. For under $100, a small claim could be filed against you and suddenly you find your time and resources absorbed in preparing a defence. However, if you had purchased a professional liability insurance policy, you would have access to funds that can be used towards receiving advise, expertise and defence from lawyers working on your behalf. Even if it seems outlandish, a client that feels you have wronged them has the right to sue you for small personal tax returns. A lawsuit could tarnish your reputation and disrupt your finances.
As a tax accountant in Canada, purchasing a financial services professional liability insurance policy goes a long way towards offering you protection against the unexpected. To obtain a policy, request a free professional liability insurance quote from EasyCover today. EasyCover enables you to request a free professional liability insurance quote and purchase insurance coverage online easily and within minutes. No waiting, no hassles, fast, effective insurance coverage available at your fingertips. You can also speak to one of our licensed insurance brokers by calling us toll free at 844-439-2683 or by using our live chat during regular business hours, MST time, Monday through Friday.