Accountants (CPA) may face difficulty finding the right CPA (Certified Public Accountant) liability insurance provider. However, knowing the right criteria will help CPAs make the right choice to protect their firm.
Here are 5 major factors that CPAs should consider:
1. Make sure your broker and insurer know the business. Many CPAs who have had mass market insurers report that their insurer and claims specialist didn’t know how to assess their liability or advise them on how to proceed. Insurers and their staff should have years of experience handling accounting cases and assessing the nature of claims or potential claims.
2. Choose an insurer who has handled all types of claims for CPAs. You always have your clients’ best interests in mind, but friendly clients don’t always stay friendly in a dispute, leading to malpractice claims against the CPA. You want the highest caliber professionals who have handled all types of CPA liability claims. They will solve your problem and protect your firm.
3. Pick proper policy limits for your firm. Excessively high limits of insurance are red flags. High limits will often put a bigger bullseye on your firm and potentially lengthen the claims process. A specialized insurance broker and insurer can discuss your firm’s specific risk exposures, loss prevention needs, policy limits, and coverage options.
4. Make sure your insurer and broker want to hear from you. Most insurers and brokers don’t want to hear from their policyholders, reducing points of contact in an attempt to reduce claims and staffing needs. Good CPA insurance partnerships take the opposite approach, providing accessible expertise and working with policyholders to minimize losses and risk.
5. What do your insurer and broker offer beyond a simple policy? Responsible CPA insurers and brokers provide policyholders with the best possible advice for preventing and minimizing claims and for controlling their premiums for years to come. And the advice should always be available during business hours on a wide variety of problems, no matter how small.