5 types of insurance every CPA in Indiana can't go without

By Gerald Cordell posted 06-08-2021 23:21


Insurance, no matter the type, is very much like a life vest. It can be an annoyance when you don’t need it but can be a real life-saver when you reach a point when you actually need it. For example, you may not like the idea of paying a monthly payment for a car insurance plan. Yet, should you be involved in a car accident, the insurance plan will cover all the costs involved in fixing your car. 

Without it, you could pay lots of money for a car wreck, illness, or an injured employee, feeling like you’re drowning…in debt. So, insurance is something so essential to your financial wellbeing, both to you as a person and a professional CPA. 

According to the Bureau of Labor Statistics, it seems that over 20,000 professionals are working under the description Accountants and Auditors. What’s more, data shows that there are over 27,000 workers who work as accountants, bookkeepers, and auditing clerks. This is a significant sign that Indiana is home to a relatively diverse economy with plenty of professional opportunities for accounting experts. But, to the chance to take advantage of all these opportunities, you need to make sure that no such thing as an accident could ruin your professional career. 

Insurance, be it business insurance, health, or car insurance, is the best way to add a layer of protection to your finances for potential future hazards that you can’t control. But we get it. Insurance is a complicated and, for some, scary topic. So, we’ve boiled your options down to five types of insurance every CPA should have in order to protect their career and financial health. 

Business insurance

If you have your own certified public accountant firm, you’re going to need a business insurance plan. This is likely your dream business that you’ve worked really hard for. So, you probably don’t want to risk it all to an unexpected financial loss. 

As a CPA, you are a tax expert, and you know how poor business decisions, accidents, or unforeseen events can mess with a business’s finances and can cost huge. 

This is where business insurance takes center stage. 

Business insurance is designed to help you protect you, your business, and your employees from unexpected risks and financial loss should anything terrible happened. There are different types of business insurance plans that can cover other things like property damage, claims of bodily injury, lost income from theft, fire or wind damages, and more. 

Workers’ compensation

Workers’ compensation is another type of business insurance policy that you should have if you own a CPA firm in Indiana. 

This type of policy is needed to protect yourself and your business’s finances in case one of your employees gets injured or suffers an accident while they are at your workplace. 

Don’t underestimate how hazardous working in an accounting office or any office in general is. Some of the most common office hazards can be slips and trips, cords running across the floor, falls from heights, and electrical accidents. 

Now, in the event of an employee getting injured in the office, and the court decides it’s your fault for the accident, you are legally obligated to provide compensation to the sick or injured worker. Workers’ compensation basically helps you pay for that compensation, enabling you to avoid having your business finances messed up. 

Car insurance

As a certified public accountant, you likely have multiple clients for whom you manage, keep and interpret financial records and taxes. This means that you’ll need to get around your surroundings from one client to another using your personal car. 

This is when car insurance comes into the picture. 

Just like any type of insurance, car insurance is meant to protect you financially should you experience financial hardship caused by a car accident. 

Think about it: car accidents can happen all the time to anyone. Imagine the financial hardship you’ll go through if it happens to you to be involved in such an accident when on your way to see a client. Plus, in case you didn’t know until now because you’re a novice driver, find out the car insurance is also required by the law in Indiana. 

Car insurance policies also offer cover for financial loss in the event of theft. So, should your vehicle get stolen, a car insurance plan will cover the costs. 

Disability insurance

As a CPA, you need a particular set of skills to do your job right and earn your income. More precisely, you need to have strong written and oral communication skills, analytical and problem-solving skills, as well as mathematical and deductive reasoning. These are all assets any CPA should have to be able to perform their job. 

Yet, what if one day an accident would happen and you’d lose all these skills? Obviously, you’d no longer be able to complete your tasks and earn your income. Wouldn’t that completely destroy your financial wellbeing? We’re guessing yes. And, this is particularly worrying if you’re the only breadwinner in your family. 

So, to protect yourself from a potential disability that would lead to loss of income, you need disability insurance. This type of insurance can be either long-term or short-term. 

More precisely, short-term disability insurance would cover your income in case you have suffered an injury or have an illness that keeps you out of work for three to six months. In contrast, a long-term disability insurance plan will cover your income in the event of a permanent disability that would no longer allow you to be a CPA. 

Health insurance 

Besides disability insurance, you also need a health insurance policy. You’re a human before being a CPA, and a health emergency can happen at any time to you, which can turn your personal finances upside down.  

Health insurance plans help you pay for certain costs associated with an unexpected illness or injury, such as medical services and medication, treatments, hospital visits, and medical devices.