Commercial Insurance ·
Accountants
Accountants' Professional Liability Insurance
Errors and omissions coverage for accounting firms, built around the claims that follow tax preparation, bookkeeping, and advisory work.
Your risk profile isn't standard. Neither is our approach.
Accounting professionals and firms encounter various risks when providing services such as tax preparation and bookkeeping. Despite their meticulous attention to detail, they remain vulnerable to claims alleging that their services have caused financial harm to clients. Fortunately, accountants’ professional liability insurance, often referred to as errors and omissions insurance, can offer vital coverage and peace of mind regarding potential financial losses from such claims.
This article explores the essentials of accountants’ professional liability insurance, detailing how it functions, its benefits and limitations, and tips for selecting the right policy.
Why This Requires Expertise
Accountants Risk Is Different. Your Insurance Should Be Too.
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Accountants’ professional liability insurance generally covers claims alleging negligence, errors, or oversights related to the services provided. These claims can be both time-consuming and expensive, even if they are ultimately unfounded. A well-structured policy helps alleviate the financial risk by covering legal defense costs, court fees, damages awarded through settlements or judgments, and the expenses of responding to the claim itself.
When reviewing policies, it is just as important to understand what is excluded. Standard professional liability insurance typically does not respond to intentional misconduct, employment-related claims, illegal activities, bodily injury to clients or employees, or property damage. Knowing where those lines fall before a claim arrives is the difference between a policy that protects the firm and one that surprises it.
Beyond the financial protection, the coverage carries practical advantages: it helps attract clients who prefer working with insured professionals, many policies include risk management tools such as consulting services and educational resources, and it lets accounting professionals focus on their work rather than the possibility of a claim.
What We Cover
Coverage Designed for Accountants
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Our Approach
An Independent Broker Who Works for You, Not the Carrier
Selecting the Right Coverage for Accountants’ Professional Liability
When considering an accountant’s professional liability insurance policy, several factors should guide the decision-making process:
- Coverage Limits: Assess the maximum amount the policy will pay for claims.
- Exclusions: Understand what is not covered to avoid unexpected gaps in protection.
- Deductibles: Review the amount you will need to pay out-of-pocket before coverage kicks in.
- Claims Handling Process: Investigate how the insurer manages claims, including the speed and efficiency of their response.
- Insurer’s Reputation: Consider the financial strength and reputation of the insurer, as this impacts their ability to pay claims.
Another important consideration is the type of coverage offered. Professional liability insurance is typically available on a claims-made basis, which provides coverage for claims made during the policy period, provided the loss occurred after a specified retroactive date. In contrast, an occurrence policy covers losses that happen during the policy period, regardless of when the claim is filed.
Engaging a qualified agent or broker can provide valuable insights, helping accounting professionals and firms select a policy that aligns with their unique needs.
Firm Credentials
The Depth Behind Your Coverage
One straightforward conversation is all it takes to understand where your coverage stands, and where it should be. Protecting Tomorrow Today.
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