Cybercrime is a threat that accountants cannot afford to ignore. Accountants handle sensitive financial information for their clients and data theft can put them at great risk. It is important for accountants to mitigate the risk through accountant insurance to avoid serious financial consequences. Accountants face different unique challenges which requireproper coverage against potential liabilities.
Hackers and scammers are all over the web and even the small accountant from the suburbs is not safe from the risks of losing important data. It is not just the threat of ransomware that accounting firms must be aware off but the data theft hackers who can earn easy money by selling the client’s information on the dark web.
The most common solution against ransomware is to backup files using cloud services instead of giving in to the demands of hackers. However, there are instances when cloud storage is not enough. For example, an independent practitioner chose to have her data wiped out and restore the backups instead of paying money. Unfortunately, her data backup strategy was not foolproof; she did not have the necessary discs to reinstall the old software.
The practitioner purchased a new version of the software but it failed to load data backups in the old file format. If she used subscription cloud services and paid a few dollars to secure data online with the latest version of the application, she would have been spared the frustrating circumstances. However, the impact of cyber attacks is far wider than the data on your desktop.
Big accounting firms can afford millions of dollars in losses but local accountants and bookkeepers may face serious financial loses. There are ways to protect data against cyber attacks through firewalls, and up-to-date anti-virus and anti-malware. It also makes sense to have accountant insurance to provide coverage against various risks faced by the profession.
Demand for accountant insurance has dramatically increased because of the proliferation of cyber attacks. The insurance provides protection in areas like PR management, breach notifications, business interruptions and third party losses. Do not ignore the threats to your profession; start to understand your exposure and prepare yourself through insurance.