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Accountants Professional Liability addresses the increasing trend of litigation and allows
the insured to transfer the responsibility of defense and indemnity to a comprehensive insurance
policy. In a management advisory role, an accountant has a duty to stay abreast of all
developments in a changing area. The failure to stay current in such areas as mergers
and acquisitions, valuations, and production efficiencies may result in a recommendation
or suggestion to a client that may cause the client serious financial harm.
More small to mid-sized accounting firms are successfully competing with larger
firms and consolidators by offering services beyond traditional accounting services,
such as financial consulting, mergers and acquisitions advice, strategic planning,
and asset management for wealthy clients. New services certainly offer the potential
for growth, but they also present "big firm" liability risks, too - risks that could
result in financial catastrophe.
The scope of work in which accountants engage is broad and all-encompassing. Accounting
services can generally be segregated into the following areas:
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Tax accounting
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Auditing
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General accounting
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Management services
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Prior Acts Coverage for qualified firms
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Worldwide Coverage
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Defense Outside of Limits
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Insurance for regulatory inquiries
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Customized coverage for unique practice areas
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Optional First-Dollar Defense (deductible does not apply to the
expense portion of a claim, such as attorneys' fees)
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Innocent Insured Coverage
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Aggregate Deductible Option
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