Tax preparation mistakes create enormous risks to clients
As a tax preparer, you help clients navigate one of the most complex systems in Canada — the tax code. Whether claiming the correct credits or understanding what clients can expense, mistakes can lead to reassessments or missed tax reduction opportunities. Clients may see these situations as negligence on your part. APOLLO offers customized small business insurance to fit your tax preparation practice’s needs.
No matter how well you understand the tax code, even minor calculation errors can lead to significant issues and the possibility of lawsuits. If you accidentally add an extra 0, your client’s tax return could get audited and reassessed. Remedying this situation requires significant time and money. Remember, mistakes can happen on bad days or late nights. A professional liability insurance policy can absorb costs related to a lawsuit for negligence or unsatisfactory services.
Lawsuits aren’t limited to negligent service. If a client visits your office and slips on your newly waxed floor, this could also result in a lawsuit. You may become liable for any expenses related to bodily injury or property damage.
Insurance is a no-brainer because it provides peace of mind. If a client sues you, you won’t be financially liable. Your insurer would instead pay for any legal costs. This keeps your business financially secure. Otherwise, a lawsuit could mean emptying your business’ retained earnings or taking out a loan.