An Accountants Guide to Understanding Public Liability Insurance

There’s a great deal of responsibility that goes into being an accountant, getting the numbers right and helping your client’s balance their books. Not only do you have the responsibility to deliver the goods, but you also have a professional responsibility when it comes to ensuring you have the appropriate types of insurances in place, like Public Liability insurance*. 

Our guide breaks down the basics of Public Liability insurance and some of the key things to remember when protecting your accounting business. Pour yourself a coffee, pack away the calculator and get ready to learn about Public Liability, accountants style. 

What is Public Liability insurance? 

While you might be familiar with the other kind of accounting insurance Professional Indemnity insurance*, Public Liability covers different kind of risks which are more associated with the interactions of third-parties.  

Public Liability insurance is designed to provide protection for you and your business in the event a customer, supplier or a member of the public are injured (and not covered by the Accident Compensation Commission (ACC) or sustain property damage as a result of your negligent business activities. 

What does Public Liability insurance typically provide cover for? 

Public Liability insurance is designed to protect your accounting business by providing compensation for property damage and personal injury or death in circumstances not covered by the Accident Compensation Commission (ACC). 

• Compensation for accidental damage to third party property 

• Compensation for personal injury or death to third parties where the ACC does not provide cover 

• Legal and defence costs 

What is not typically covered by Public Liability insurance? 

These are some of the things that are typically not covered by a Public Liability insurance policy. 

• Personal injuries to you or your employees 

• Damage to your own property 

• Advertising Injury 

• Costs of fixing faulty workmanship 

• Professional negligence or illegal activity 

• Reckless or wilful failure to take care 

• Contractual liability 

• Asbestos 

• Pollution 

• Events occurring before or after the policy period 

Why might accountants consider Public Liability insurance? 

Just like any other business that works and interacts with clients, you may be faced with the risk of something going wrong, no matter how careful you may be. These are a few examples of when Public Liability insurance may provide that extra bit of protection for your accounting business: 

  • It provides financial protection in the event that you may be faced with a Public Liability claim. If a claim were to occur, take a moment to consider the financial impact it may have not only your accounting business, but your personal finances. The legal costs involved with a claim can be significant and enough to send some accountants out of business for good 
  • If you are renting your business premises, Public Liability insurance may be a requirement of your rental agreement. 
  • When you are out and about visiting client’s Public Liability insurance provides protection by providing compensation for property damage, and personal injury or death in circumstances that are not covered by the Accident Compensation Commission (ACC). 

What is the difference between Public Liability insurance and Professional Indemnity insurance? 

While you may be familiar with different types of accounting and chartered accountants insurance products, two of the main types of insurances you may encounter are Public Liability insurance and Professional Indemnity insurance*. 

We’ve covered the basics of what Public Liability insurance typically covers and excludes. Let’s see what Professional Indemnity insurance typically provides cover for. 

Professional Indemnity Professional Indemnity (PI) insurance is an important form of protection for businesses that provide specialist services or professional advice. It is designed to respond to claims against your business for losses as a result of actual or alleged negligent acts or omissions in the provision of your professional service or advice. PI Insurance will also assist with the legal costs associated with responding to or managing claims which are covered by the policy. 

Getting your accounting Public Liability insurance sorted doesn’t need to be a lengthy process. At BizCover, we provide a range of business insurance options to insure your accounting business for when your business needs protection for the things that matter. Whether it’s addressing the Professional Indemnity accounting insurance needs of your business or just your overall accounting insurance requirements, we understand small businesses. 

Visit bizcover.co.nz and get trade insurance for your accounting insurance without drama and get on with your day. If you’d prefer to pick up the phone and chat you can find us at 0800 249 268. 

If you’d prefer to pick up the phone and chat you can find us at 0800 249 268. 

*This information is general only and does not take into account your objectives, financial situation or needs. It should not be relied upon as advice. As with any insurance, cover will be subject to the terms, conditions and exclusions contained in the policy wording. © 2023 BizCover Limited.   

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