Insurance for Accountants and Accounting Firms
An accountant or accounting firm performs services that involve a very high level of expertise; furthermore, their clients typically depend upon the advice they receive. Unfortunately, in the event that something goes wrong, chances are that professional may face a lawsuit alleging harm from an accounting-related act.
Standard, general liability policies exclude any losses involving professional services; causing accounting professionals to seek protection elsewhere, from a specialized type of Errors & Omissions coverage, known as Accountants Professional Liability Insurance.
Accountants Professional Liability works to proactively protect an accountant or accounting firm from losses involving:
- Alleged negligence in auditing and preparing financial statements
- Providing faulty tax advice
- Providing poor financial reporting and/or record-handling
An effective Accountants Professional Liability policy is not standardized; it’s tailored to match your distinct needs, that is why at Joy Insurance Agency you will work directly with one of our expert insurance and risk management representatives who help you to customize the perfect policy for you.
Generally, most Accountants Professional Liability policies have the following features in common:
- Coverage is on a claims-made basis – meaning that coverage depends upon when a possible loss is recognized and reported rather than when it actually occurred
- Coverage is subject to a specific deductible – though some policies may have separate coverage with separate, applicable deductibles
- Coverage is available for prior acts and predecessor firms – this coverage may be critical for professionals who have left firms that are no longer in operation (due to mergers/buyouts, etc).
This specialized coverage also applies to the accountant or firm named in the policy as well as others who meet a policy’s “insured” definition such as: partners, directors, officers, employees, stockholders and heirs.
We understand you have questions about the insurance options available for accountants. Our agents are committed to helping you find the best rates – and the best coverage. Contact Joy Insurance Agency today to learn more about your options for Accountants Professional Liability Insurance today!