The Importance of Audit Insurance For Small Business

Audit Insurance

We are all aware of the consequences of businesses going bankrupt, shedding key staff and having to close doors. This article breaks down the importance of business audit insurance, not just as a compliance step but as a way to avoid running a business that might be failing.

Business Audit Insurance Mistakes to Avoid

Audit insurance is designed to protect a company from the financial damages that may result from an internal or external audit. Therefore, businesses must look at which type of coverage they want and how much protection they can afford out of their budget.

What are the benefits for my business?

The benefits for small businesses in choosing audit insurance are many. Business owners can accurately choose a deductible and invest their budget accordingly. Over time, this will help protect your business clients as each claim is less likely to be bigger than the deductible. The cost is also affordable so it is easy to calculate and fairly priced.

How does it work?

Audit Insurance For Small Business safeguards your company from the risk of a financial loss. Benchmark Communications, a marketing and public relations agency, recently failed to file their state’s business tax return by the deadline and they were fined up to $1,000 in non-payment fees by the IRS. The IRS audit cost them around $25,000 in fines and their lead producer resigned because he felt unsafe with an agent staying on staff.

Audit Insurance

Is Audit Insurance For Small Business Worth It?

Yes! There are many benefits of this coverage so obtaining this coverage is worth it if you’re willing to keep paying for it year after year.

A comparison of audit insurance solutions

The insurance industry is highly regulated, with many different policies to protect consumers. However, smaller businesses are vulnerable and do not have the buffer of large companies. Consumers must ensure that they’re protected and will continue to shop at a business even after uncertainty with insurance.

Why small businesses need it?

Many small businesses are starting to buy insurance. Why might they be interested in buying this type of insurance? If a business is carrying out certain actions, it may need insurance to protect the investments that it has made. Another reason maybe if it creates a risk to other people if something happens. Many online travel agencies and shops that do online transactions need audit insurance because their business can lead to fraudulent shopping scams.

Payment Process Made Simple

Many small business owners take the leap of faith and let employees open personal checking accounts to pay themselves. Unfortunately, there is no employer-mandated requirement for the business to have audit insurance. If a file gets hacked or another malicious event happens with one employee’s access to the account, the business could be liable if they don’t have this insurance. This can lead to costly repairs and lost revenue.