E&O Insurance for Accountants & CPAs

As an accountant, you work hard to protect your firm, your reputation and your bottom line from any number of varying risks. Whether serving as a CPA, bookkeeper, tax preparer or consultant, your clients rely on your expertise and accuracy to avoid problems whenever possible. While you’re looking after the best interest of your clients, you need a trusted specialty insurance broker that will help you protect your business assets as well.  That’s where the Hirsch Insurance Brokerage fits in.  We are an independent agency and will shop your coverage with highly rated CPA Professional Liability (E&O) insurance carriers.

Accountants’ Professional Liability (Errors & Omissions) insurance covers various types of potential exposures that are not typically covered under your general liability policy. This product provides coverage against claims of negligence or mistakes that cause financial harm to another person or company, such as negligence, misrepresentation, and inaccurate advice, and covers both the obligation to pay damages for covered claims, as well as the cost to defend and litigate against such claims.  We have markets available offering competitive rates for the following accounting professionals:

  • Bookkeepers
  • Certified Public Accountants
  • Enrolled Agents
  • Small and mid-sized accounting firms
  • Tax Preparers

Sample Policy features and benefits we can include, but not limited to:

  • “A-“ Rated or better, admitted carrier
  • Hard to place risks available (claims history)
  • Claims-made coverage
  • Duty to Defend Policy
  • 60 Day Claim Reporting Grace Period
  • Worldwide Coverage
  • Defense of Disciplinary Proceedings Options
  • Reimbursement for Loss of Earnings
  • Public Relations Crisis Expenses
  • Non-Profit Directors & Officers Coverage Options
  • Subpoena Assistance – Response for Legal Fees & Expenses
  • Initial Claim Expense Limit Options – Protects Erosion of Policy Limits by Legal Fees
  • Multiple Deductible Options Including Aggregate Deductible and First Dollar Defense
  • Multiple Extended Reporting Period Options Including Free Unlimited Options for Death, Disability and for Individual Qualified Retirees
  • Unlawful Use, Theft, or Embezzlement of Funds by Insured
  • Pre-Claims Assistance Includes All Fees, Costs & Expenses Incurred to Help Mitigate a Potential Claim
  • Confidential Risk Management Hotline Included with Policy

Here are some examples when an Accounting Professional may need E&O Insurance:

  • The owner of a small business hired the account to perform basic bookkeeping services and prepare annual tax returns, documented in the annual engagement letter.  Eventually, the professional relationship developed into a personal one.  At a social event, the business owner asked the account to compile his business’s financial statement and other supporting paperwork to obtain a small business loan from the bank.  However, the accountant failed to complete this request.  As a result, the bank denied the loan, the business did not win the new contract and the once-friendly business owner brought a suit against the accountant for lost income.
  • A local business hired the CPA to handle its payroll on an outsourced basis. The accountant mistakenly overpaid a client’s sales rep by a significant amount, and the sales rep terminated her employment with the client before the error was detected.  The client made a claim against the accountant to recover the overpayment.
  • Client fails to report income on a 1040 tax form that you prepared, and then they are audited by the IRS. Your client now owes back taxes and severe penalties but blames you for the error and brings suit.

Hirsch Insurance Brokerage has the knowledge, resources and industry relationships to build an insurance solution that meets the unique needs of each of our clients.  We offer our exceptional service guarantee combined with a vast selection of Professional Liability (E&O) Insurance products to meet your business needs. Our products offer broad coverage and competitive premiums to ensure we are staying ahead of our competition while putting our clients first.  Remember, not all E&O policies are created equal and neither are the insurance carriers.  Let our experience make the difference for your business.