How does professional liability insurance for accountants benefit them?

Over the past decade it has been seen that companies of all sizes and every industry has been affected by surge in varied litigations. Today infact every organization that provides services to the clients is susceptible to lawsuits. Accountants professional liability insurance shields them and their organization from the unforeseen. Every year there are thousands of suits which are filed against tax preparers, accountants and bookkeepers. The audit rules and regulation is constantly changing and hence it is important that the book keepers have this insurance as safety net to protect them from legal litigations. This insurance also helps to protect your personal assets.

The AICPA professional liability program:

 In 1967 the American Institute of certified public Accountants established the AICPA professional liability insurance program. This program was established so that all the AICPA members can avail quality professional insurance. Also all the CPA firms today are under the constant threat of facing serious consequences which results from professional liability lawsuit. The AICPA Professional and Personal Liability Insurance Programs (PLIP) Committee composed of a group of practicing CPAs monitors the overall management of the AICPA program. To have the latest updates and frame a policy accordingly PLIP Committee meets regularly with Aon service insurance, CAN, the national program administrator. No matter what is the size of a CPA firm or what is their area of practice, this program offers insurance tailored to meet the needs of varied firms. They offer different plans depending upon the size of your organization and your annual revenue.

• If you have annual revenue up to $400,000 and do not have more than three accounting professionals then you can opt for CPA value plan.
• Firms having annual revenue in excess to $400,000 and have four or more professionals with unique coverage should select Premier plan.
• Regional firm plan is for those firms whose billing exceeds $10 million and also have some specialized needs.

Any profession is bound to some errors. The clients look up to bookkeepers, tax preparers and accountants to be perfect and accurate to maintain their financial records. But no matter how experienced and polished these professionals are mistakes do happen. Inspite of their seamless risk management procedures there are incidents of errors and negligence. CPA professional liability insurance is very essential for these professionals as they deal with large amounts of information that are sensitive and important. They have to make calculations for assets that worth millions of dollars and any error during this calculation can cause their clients to lose large amount of money or can get them into trouble with the tax department. Accountant becomes responsible for any losses incurred by the clients and can face legal issues. To protect them from such financial and legal dangers it is best in the interest of these CPA’s to opt for professional liability insurance.

Brunswick Companies have developed core competencies in the insurance and risk management requirements since 35 years. They are specialist in CPA professional liability insurance and have up to date knowledge to provide you with the best coverage that meets with the guidelines of your state. They are well versed with the ethics and professional standard requirements of each state. They just do not offer their clients policy but also provide on going counseling, strategy and advice. They offer best and affordable policy and support them in any insurance related litigation.

Accountants professional liability insurance protects accountant’s practice, reputation and career.