Liability Insurance

[hbplifestyle]

Do any of you bookkeepers carry and or know anything about requirements of having liability insurance.

[CyberAsst]

I am unsure of the liability insurance for your state for bookers etc. However, it is always a good idea to look into professional insurance. I have been in the insurance field for 13 years and I always recommend at least checking into it. Often times I have seen that the insurnace company is there to defend you if a client decides they were wronged and sues you. This can become expensive extremely fast.

I would talk to your personal insurance provider (home, auto) and ask them if they do business professional liability insurance. If not they may be able to refer you to someone who will. If you can't find an agent pm and I will see if I can find someone in your area.

[Office Goddess]

As a bookkeeper, I carry liability insurance for the few clients that come to my home, E&O (errors and omissions) insurance for major mistakes I may do that cost them money, and a 'Service Bond' that guarantees the replacement of their funds should I steal from them.

[kberes03]

I have been told that if you become an LLC that would protect you instead of having insurance. Any thoughts on this?

[lanelt]

This is an instance where my attorney said LLCs and other Corporations won't necessarily protect you. If you make an error and you are a single owner no matter what form of business you are you can be personally held liable for damages. Having E&O coverage is helpful and, assuming your coverage is good, could save you a lot.

I have Business Property insurance for my business equipment, etc. which also covers injury if someone is hurt when they stop by my office. I also carry E&O insurance in the event I ever made a costly mistake. I don't enjoy that bill but I like not having the worry that something "may" happen.

[VY925]

I researched insurance and bonding last year. E&O is probably the best protection you can get as Lanel mentioned above. In NY, it costs about $2,500/year - big OUCH.

However, please be sure you completely understand the slip and fall business policy insurance agents like to sell you. My State Farm insurance agent (NY) advised me that he would happily sell me the business policy for a few hundred, but in the end it provides little to NO protection. Also, keep in mind that your home owner's policy DOES NOT cover clients coming to your home because it is a residence, not a business.

Bonding - it is difficult to find for Virtual Assistants. For example, in the case of a "house cleaning person", the bond would cover the cost of a stolen item (ie camera, a tangible item). VAs do not normally have possession of tangible products. A bond will not cover a client from losses incurred from a less-than scrupulous VA who steals from a credit card.

More education is a must! Even categories in advertising. VA's are not one-size fits all category. We just need to keep plugging away and eventually the world will have a better of understanding of our industry.

[kberes03]

Wow, thats great informationa and I really appreicate it! I will look into the E&O insurance. Are any of you an LLC?

[Office Goddess]

I am an LLC. The "service bond" that I carry covers all types of financial theft, including credit cards. I KNOW I'll never steal - this just helps reduce my client's concern and it only costs me $100/year.

[lanelt]

E&O is probably the best protection you can get as Lanel mentioned above. In NY, it costs about $2,500/year - big OUCH.

Ouch, I have my E&O through State Farm and it runs about $600 a year. I wouldn't have been able to fork over $2,500/year.

[FPPFlorida]

When I checked into getting general liability insurance, my agent actually recommended professional liability instead. It costs about $900 per year for Florida.
Sheila