OREANDA-NEWS. December 01, 2009. OJSC IC ROSNO has launched an insurance program covering civil liability for damage inflicted due to shortcomings in accounting services. The product "Honest Accountant" has been designed both for specialized organizations and private entrepreneurs, reported the press-centre of ROSNO.

Accounting is known for its high vulnerability, since it depends on the constantly changing accounting and tax reporting system. ROSNO’S new insurance program "Honest Accountant" fully meets the insurance needs of accounting firms and private entrepreneurs keeping or reestablishing accounting systems of their client organizations.

The insurance contract contemplates reimbursement of insurant’s property interests related to the obligation to reimburse third-party damage inflicted due to:

unintentional violation of the laws of the Russian Federation, as well as regulations and methodological instructions regulating bookkeeping operations and preparation of accounting and tax statements;

loss of, or damage to, any documents;

unintentional errors and omissions made in course of rendering accounting services.

The insurance compensation covers costs of restoring the breached right, amount of sanctions (fines, penalties, etc.) paid by a third party to the state budget; expenses incurred to reduce losses and clarify circumstances of an insured accident, and legal costs, including the costs of hiring attorneys.

The insurance period is 1 year. The insurance terms, involving no multiplying factors, contemplate an extended time period (1 year) for presentation of claims (demands), enabling reimbursement of damage under any insured accident occurring during the effective period of the insurance contract.

Various options for franchises and insurance limits enable the insurant to choose an optimal insurance scheme.

"In recent years, the market for financial outsourcing has been dynamically growing, yet its saturation is quite insignificant, approximating 5%. The growth potential is immense, especially due to the current crisis. This crisis has encouraged many companies to reduce their financial structures and outsource some of their operations to third-party companies", comments Ms. Yekaterina Fedorova, Deputy Director of the Product Analysis and Development Department of OJSC IC ROSNO. "In this respect, the professional liability insurance program introduced in the industry is gaining particular importance. The program developers took into account the specifics of accounting firms’ operations. The growth of outsourcing in the accounting industry is hindered by the distrust felt towards third-party contractors, which results from the fact that it is unclear, who and to what extent is going to reimburse the damage in case of any unintentional errors made by outsourced professionals. ROSNO’s policy will serve as a reference and guarantee of the business partner’s reliability".