Did you know that the leading cause of claims for smaller accounting firms results from tax-related professional services?
In fact, well over half of all professional liability claims made against accountants are derived from improper tax advice and from filing errors. Why does accountants professional liability insurance make sense for you and your firm? Let’s share some of the misconceptions:
I don’t need insurance. I do only tax work. I don’t perform any audits. Accountants who do audits have all the claims.
There is no other way to say it – this is just not true. How much tax-related work do you do for both businesses and individuals? If you’re like the average small firm, the bulk of your revenues are from this area of practice.
There is little evidence to support the notion that attorneys are less interested in pursuing cases if you don’t have insurance, but why would you want to gamble your very livelihood on this notion?
As a smaller firm, how much of your capital assets can you afford to lose on this gamble? If you get sued, attorney’s fees and expenses could cost you $100,000 + just to get you dismissed from a frivolous lawsuit. These costs will come out of your own pockets if you don’t carry professional liability insurance. In just a few days, you could incur far greater financial losses than the relatively low cost of your professional liability premium. A disgruntled or determined client, and a savvy attorney will make you just as much of a target for a lawsuit even if you don’t carry professional liability insurance.
Is ½% to 1% of your firm’s annual revenues really too much to pay for peace of mind?
You should know that considerable time and effort has been invested by law firms and expert witnesses in pursuing accountants for malpractice. Type “accounting malpractice attorney” or “accounting malpractice support” into an internet search engine and you will see page after page of hits. Also be aware: The American Bar Association now has an accredited body that certifies specialists for suing accountants for malpractice. Many law firms even provide financing for their clients in order to facilitate filing a claim. It’s easier than ever for clients and other third parties to make a demand against you and pursue it.
Experience the New & Easy Way To Get Coverage
We understand the needs of smaller firms, and have designed a streamlined and simplified application process that allows you to spend more time focusing on running your business, not on filling out paperwork. See for yourself just how simple it is to get a professional liability insurance quote and get the coverage that your firm requires – and at a price that’s right for your level of risk and your budget.