Why buy Accountants E&O/Accountants Malpractice Insurance?
When an allegation of negligence arises the costs start the add up. Not just legal fees – the reputation of your accounting firm is on the line. Professional Liability (also called Errors & Omissions, E&O or Malpractice) Insurance provides a defense against allegations of wrongdoing and indemnity if a judgement is made against you.
Anyone who has dealt with lawyers, especially specialized ones, knows the cost can be extreme. Firms who buy insurance do not need to worry about the cost or hassle, an insurance company claims professional will handle the details and contract with a specialty law firm to lead your defense.
What should I expect when I obtain insurance?
Your InsureAccountants.com broker will walk you through a structured process:
- They will gather information on your firm, both in person/on the phone and through research of public information.
- The second step is to contact insurance company underwriters and begin the negotiation process. As specialists our brokers have deep relationships with the people making decisions on your pricing and terms.
- After receiving options your broker will lay out the pros and cons of each proposal, walking you through the decision process.
Click here to get the process started or call 866.243.3820.
Is there a cost to me?
There is no cost to you, we are compensated on a commission basis by the insurance companies we work with. We are happy to disclose our remuneration and work hard to avoid conflicts of interests. As an independent broker our allegiance is to our clients, unlike competitors who are agents of the insurance companies.
What insurance companies do you work with?
We work with most insurance companies offering terms on Accounting E&O Insurance, over 20 at the present time. As an independent broker we can approach as many underwriters as necessary on your behalf and provide unbiased guidance in selecting the best terms.
Is my firm too small to need insurance?
With policies starting at $300 a year no firm, even a single book keeper, is too small to need insurance. In fact, the smaller you are the more devastating unexpected legal bills can be. Whether you are an auditor, accountant, fiduciary, tax preparer, or consultant there is a risk of lawsuits.
What factors influence the cost of my insurance?
An insurance company considers many factors when pricing a policy. For an accounting firm’s professional liability insurance, such factors include:
• Location of firm’s headquarters
• Coverage options/enhancements
• Retroactive date
• Areas of practice the firm engages in
• Number of professionals, CPAs and non-CPAs, in the firm
• Prior claim experience
To discuss these in greater depth, contact us.
What if my firm has had a claim?
If your accounting firm has had a claim, it means you need an advocate on your side. We were introduced to a Midwest accounting firm who just settled a lawsuit against them and the insurance company was raising their premium. We agreed to partner with the firm and discovered that the claim arose from a tax partner who no longer worked at the firm and additional oversight was placed over the tax practice. After explaining this to the underwriters, the firm was able to renew near their expiring premium.
What other insurance products are available to my accounting firm?
We specialize in helping you understand the insurance products needed today. This includes:
• Errors and Omissions (protects you an allegation of negligence in the rendering of your professional services)
• Employment Practices (covers employment related claims like wrongful termination or discrimination)
• Fidelity/Crime (insures against theft by employees)
• Fiduciary (covers claims related to breach of fiduciary duty on your firm’s retirement plans)
• Directors and Officers/Partnership Insurance (covers principals of the firm against many allegations of mismanagement)
• Workers Compensation
• General Liability
• Property Insurance
Please contact us to discuss whether these insurance products might be right for your firm.
Will my ancillary services be covered?
Almost anything can be covered, although some services are better broken out onto a separate policy. The policy forms we have access to have optional coverages for registered representatives, life insurance agents, being an officer of an outside organization and investment of client funds.
Is Elder Care Covered?
Yes. Eldercare, as defined by the AICPA’s assurance services is a fast growing service rendered by CPA firms today. The risk associated with these services necessitates insurance, and we work with you to make sure this work is covered under your insurance policy.
How does claims made insurance work?
This video gives a basic overview of claims made professional liability insurance:
Do you offer payment plans for my insurance premium?
Many accounting insurance companies offer payment plans, especially for small clients. If the insurance company will not offer such an option we have banking partners who offer terms with very low APRs. If this is of interest to your firm, be sure to mention it when you speak to your InsureAccountants.com broker when binding.