Call Us 866.940.1101 ☰ ˟
866.940.1101
Logo
  • Home
  • About Us
    • About Us
    • Employee Directory
    • Partners Page
    • Event Calendar
    • Refer a Friend
  • Get A Quote
  • Products
    • Lawyers Malpractice Insurance
    • Professional Liability Coverage For Attorneys
    • Accountants Professional Liability
    • Dentist Malpractice Insurance
    • Business Owners Policy
    • Cyber Liability Insurance
    • Workers Compensation Insurance
    • Title Agents E&O Insurance
    • Paralegal Malpractice Insurance
  • Testimonials
  • Common Terms
    • Common Terms
    • Frequently Asked Questions
  • Blog
  • Contact
  • Areas We Serve
    • Grand Rapids, MI
    • Detroit, MI
    • Lansing, MI
    • Kalamazoo, MI
Home > Blog > Accountant Malpractice—Tax Preparers and Bookkeeping Policy may not be good fit for CPA
FRIDAY, AUGUST 18, 2017

Accountant Malpractice—Tax Preparers and Bookkeeping Policy may not be good fit for CPA

Recently we were working with a newer CPA.  His current agent had written him a Business Owners Policy (BOP) and combined that with an additional policy for Tax Preparers and Bookkeeping Errors and Omissions Insurance for one policy through The Hartford.  While these combination policies can be a cost effective way to add vital coverages they may not be appropriate for a CPA or an accounting practice.

This particular CPA did not do audit work, but did prepare compilations, did business planning and did business valuations which would also be normal practice areas that would be expected of a CPA.  Given these practice areas The Hartford Tax Preparers and Bookkeeping Policy is likely not a good fit.  While it does cover bookkeeping services and tax preparation, it specifically excludes compilations, business planning and business valuations per the following exclusion which is found on the ‘Professional Services Endorsement – Tax Preparers and Bookkeepers’ (Form SS 25 59 06 15):

Section III Exclusions Section

“or, based upon or arising from liability arising out of loss by anyone because of a loan or investment where reliance was made on any report, audit, balance sheet or other financial, accounting or related schedule, exhibit, statement or report that was prepared, signed or certified by any "insured";”

Fortunately for this CPA, (s)he currently has no known claims that would arise because of the above mentioned areas of practice.

It is important when applying for accountant professional liability insurance coverage to make sure that accountant or CPA gets the coverage needed to cover their practice.  Currently there are no known combination policies combing a BOP with errors and omissions coverage for a CPA accounting practice sold in the US.  

Posted 1:16 PM

Tags: accounting malpractice, accounting errors and omissiosn coverage, tax preparing bookkeeping policy
Share |


No Comments


Post a Comment
Required
Required (Not Displayed)
Required


All comments are moderated and stripped of HTML.

NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive
  • 2023
  • 2022
  • 2021
  • 2020
  • 2019
  • 2018
  • 2017
  • 2016
  • 2015
  • 2013
  • 2011

  • lawyers professional liability insurance(429)
  • attorney malpractice insurance(399)
  • attorney malpractice(337)
  • legal malpractice(225)
  • legal liability(134)
  • cyber insurance(106)
  • data breach(92)
  • ethics(87)
  • erp(57)
  • malpractice insurance(55)
  • claims(39)
  • title agency e&o(36)
  • accountant e&o(34)
  • extended reporting period endorsement(30)
  • tail(29)
  • phishing(25)
  • legal malpractice insurance(23)
  • prior acts(22)
  • claims made coverage(21)
  • extended reporting period(21)
  • cyber security(20)
  • cyber liability(18)
  • accountant errors & omissions(18)
  • claims reporting(18)
  • crime insurance(16)
  • ransomware(16)
  • claim prevention(16)
  • attorney protective cle(14)
  • the hartford weekly newsletter(14)
  • attorney protective cle webinar(14)
  • 2022 mcgowan pro cpe webinar for accountants(13)
  • professional liability insurance(13)
  • mcgowan webinar series for cpas 2021(12)
  • retirement tail(12)
  • attpro tip of the month(12)
  • business owners insurance(11)
  • legal liability insurance(11)
  • fee suits(10)
  • full prior acts(10)
  • cyber crime(10)
  • accountant errors & omissions insurance(10)
  • prior acts date(9)
  • step rating(9)
  • non-practicing erp(9)
  • bop(9)
  • cyber liability insurance(9)
  • title agent errors & omissions(9)
  • claims made(9)
  • coverage(8)
  • webinar(8)

View Mobile Version
Logo
Quick Links
Home Our Products Customer Service Payment Options Common Terms
About Us Refer A Friend Our Carriers Blog Contact Us
Location
2430 Camelot Ct SE
Grand Rapids, MI 49546

Local: 616.940.1101
Toll Free: 866.940.1101
Email: info@L2ins.com
Facebook Twitter Social LinkedIn
© Copyright. All rights reserved.
Powered by Insurance Website Builder