professional liability insurance for accountants
Professional Liability
Management Liability
& Specialty Insurance

Professional Liability Insurance for Accountants

We provide professional liability insurance, also called errors and omissions insurance, to accountants, CPAs, enrolled agents, tax preparers, bookkeepers, and other accounting professionals. We have access to multiple insurance carriers that write accounting professional liability insurance and can find coverage for all types or risks, from the small bookkeeping business to the large multi-state audit firm.

We also provide all other insurance coverages that accounting professionals might need, including general liability, workers' compensation, business packages, and management liability insurance.

What coverage does a professional liability insurance policy provide accountants?

Professional liability insurance provides coverage for claims made against accountants by reason of a negligent act, error or omission in the performance of professional accounting services. Some policies provide coverage for defense and expenses incurred to investigate, defend, or appeal a disciplinary or regulatory proceeding. Some policies also provide coverage for other accounting-related services, such as investment advice, personal fiduciary, notary public, arbitrator, or mediator.

Accounting professional liability insurance policies contain multiple exclusions which limit or eliminate coverage in certain cases. Examples of common exclusions are as follows:
Accountants should therefore review their professional liability insurance policy fully to ensure that the services they provide are covered.

What rating factors impact accounting professional liability insurance premiums?

The basic premium rating factor for accounting professional liability insurance is typically the amount of gross revenue or the number of professionals, or a combination of the two such as gross revenue per professional. This means that the larger the firm, the higher the premium. Policy limits and deductibles are other common rating factors. Higher policy limits result in higher premiums while higher deductibles result in lower premiums. The claim experience is another common factor and accounting firms with claims in the past few years will usually pay more than those without claims.

There are various other rating factors which are used in the calculation of the premium and which vary by insurance company. The use of engagement letters is often used as a rating factor and accounting firms which use them regularly will tend to have a lower premium. The types of services provided can also have a significant impact on the premium and services such as the audit of public companies are significantly more expensive to insure than bookkeeping and tax preparation. The territory where the accounting firm is located can also impact the premium. Firms located in more litigious states, such as California, and in an urban, rather than rural, location usually have a higher premium.

There are multiple other rating factors which can impact the cost of an accounting professional liability insurance policy. As we have access to multiple insurance carriers, we are usually able to provide policy and premium options from different carriers.

CB Malaga Insurance Services LLC operates in the following states: Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Illinois, Indiana, Iowa, Kansas, Louisiana, Maine, Maryland, Michigan, Minnesota, Missouri, Nebraska, Nevada, New Jersey, New York, North Carolina, North Dakota, Ohio, Oregon, Pennsylvania, Tennessee, Texas, Utah, Vermont, Washington, Wisconsin, Wyoming