With the professional liability insurance market hardening thanks to the repercussions of the pandemic, Candace Coach, small-firm sales manager at Aon, the broker and administrator of the American Institute of CPAs' Professional Liability Program provided the following tips for accountants who are looking to protected. (See our 2022 Buyers' Guide to Professional Liability Insurance.)
What are you protecting?
Have you considered the 'Three Ps'?
What are your limits?
The limits and deductibles piece is critical because CPAs need to make sure the policy is sufficient for their needs. This is really a question of what you could afford to pay out of pocket in the event of a claim. Are the limits high enough to cover a worst-case scenario? Is the deductible too high or could it be cost-prohibitive? Depending on where a CPA does business, they may also have to comply with state insurance minimums, so we suggest checking with state board of accountancy on any regulations.