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Protect your business from risk

Insurance is necessary for all business owners, including Bookkeepers.

As a bookkeeper you are involved in your client’s financial management – and that is a role that does not come without risk!  Even for the most experienced Bookkeepers, we are all still human - mistakes and accidents can happen, and can have disastrous results if you are not protected. 

While recording the financial transactions of your clients is a significant responsibility, it is not just financial transactions that could expose your bookkeeping business to risk.

As a Bookkeeper you need to protect yourself against:

Claims relating to your professional advice or services

Professionals who provide advice or a service to individuals, businesses or under government contract, or anyone who is required by contract to have their own Professional Indemnity cover in place.

This is possibly the greatest risk for bookkeepers and one that lingers even after you’ve sold or wound up your practice or retired.

 

Why you need it

If a client alleges financial loss as a result of something you’ve done or not done, the client may take legal action against you to recover those losses.

The client may allege you have:

  • Failed to provide promised services
  • Been negligent in rendering professional services
  • Provided shoddy, incomplete or incorrect work
  • Made mistakes, oversights or omissions

The risk of a claim being made is not necessarily related to your skill or professionalism – it’s about whether an unhappy client alleges you’ve made a mistake, overlooked a critical piece of information, misstated a fact or the client has misinterpreted you in the course of your work.

What does it cover me for?

Subject to the policy terms and conditions, Professional Indemnity Insurance will cover investigation costs, legal defence costs and court ordered settlements, which can be reasonably high.

It can literally make the difference between remaining solvent or going out of business.

The policy also includes ‘Run-Off Cover’ to protect you against long-tail exposure under the Limitations Act, and a market-leading ‘Errors and Omissions’ wording for greater protection.

Claims arising from property damage and personal injury

All businesses that interact with other people, including contractors or consultants who work from home or visit client premises, or businesses with premises that clients or any members of the public can visit.

The type of insurance cover to protect you from this is General Liability Insurance.

Why you need it

A general liability claim could arise from virtually any property damage or personal injury (not covered by ACC) that happens at your business premises or home office, or while you’re visiting clients etc. that can be attributed to you or your employees in the course of your day-to-day business activities.

What does it cover me for?

Subject to the policy terms and conditions, General Liability Insurance will cover any compensation payments to third parties in the event of injury or death, the repair or replacement costs for damaged property and possessions, legal defence costs and court ordered settlements, including punitive and exemplary damages.

Claims relating to unintentional breaches of any insurable Act of NZ parliament

All businesses operating in New Zealand, including contractors and consultants should consider Statutory Liability Insurance.

Why you need it

Statutory Liability Insurance protects your business – you and any employees, directors, trustees and managers – against unintentional breaches of New Zealand laws that result in prosecution.

What does it cover me for?

Subject to the policy terms and conditions, Statutory Liability Insurance will cover the legal defence costs and reparations if you unintentionally breach certain New Zealand laws, including the Privacy Act 2020, Health and Safety at Work Act 2015, Consumer Guarantees Act 1993, and Fair Trading Act 1986.

It also covers costs related to workplace injury or Commerce Commission investigations.

Claims arising from employees

Any New Zealand employer should consider Employers Liability Insurance for their business.

Why you need it

Employers Statutory Liability protects business owners and directors from financial impacts if employees make claims against the employer on the basis of pain, suffering or loss of enjoyment of life.

What does it cover me for?

Subject to the policy terms and conditions, Employers Liability Insurance covers the legal defence costs plus damages or settlements associated with workplace personal injury claims not covered by ACC, such as depression, anxiety or mental anguish; trauma, nervous shock or fright; and disease or infection resulting from unsafe workplaces.

 

ICNZB Insurance Scheme

The Bookkeepers Liability Scheme conveniently packages the policies relevant to bookkeepers and provides added benefits negotiated especially for ICNZB members by Abbott Insurance Brokers.

It means ICNZB members can access better policy wordings providing greater protection and at a better premium than you could get elsewhere by going it alone.

Learn more about the scheme here

 

The information provided is intended as general advice only and does not constitute personal financial advice. We recommend you seek professional financial advice that is specific to your objectives, financial situation and needs before making any decisions.

We recommend you contact an Abbott broker for advice that is tailored to you and your business.  Email: bookkeepers@abbott.co.nz