There’s no getting around it: Being an auditor or an accountant can be extremely risky, and you are subject to many different types of exposure. One incorrectly crunched number can result in a client losing a lot of money, your client losing their case, or costing a company a lot of capital. It’s a profession that obsesses over attention to every detail and does not jive well with complacency. Anybody in this industry should be very weary of this happening, but in case it does, you need CPA professional liability insurance to have your back. It can save your career, your job, and your reputation.
So what does CPA professional liability insurance cover? For starters, it covers any costs that may be associated with the investigation and mitigation of a claim. It also covers an incident that may not even be the fault of the professional, such a break-in or a computer virus that results in stolen financial or confidential records. Usually the policy will also include a grace period to file your claim, free risk management advice, a reduction of the premium or deductible over time or if a potential claim is resolved by another means. This type of insurance is essential to anybody who deals with auditing or accounting, and can save countless dollars and hours spent picking up the pieces.