Professional Liability Insurance for Accountants

Our comprehensive Accountants Professional Liability insurance product addresses the risks inherent in the accounting profession and ease the financial and administrative burdens that can accompany professional liability claims.

Why Berkley Select

The challenges and expectations accountants face are evolving every day. From missed tax deadlines and failure to file, to professional negligence, we understand the inherent risks accountants, like you, may face. Berkley Select partners with you to quickly address complex exposures with creative professional liability insurance solutions. As a Berkley Select policyholder, you benefit from expert underwriting, efficient claims handling, and innovative technology to better serve your needs.

Coverage for Accountants

We offer Accountants Professional Liability insurance to small and mid-sized accounting firms, individual CPAs and bookkeepers. Our comprehensive insurance product addresses the risks inherent in the accounting profession and eases the financial and administrative burdens that can accompany professional liability claims.

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Innovative Risk Management Solutions

As an accountant, you have your own unique risk management needs. That’s why we provide complimentary risk management services that offer valuable solutions, including:

Confidential toll-free hotline and dedicated risk management website
Risk management materials and publications available

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Proven Accountants Professional Liability Claims Expertise

Berkley Select's core cultural value stresses personal accountability, allowing us to identify and address localized market conditions and more efficient claims handling than most other insurance providers. In addition, an extensive claims database identifies trends that can be shared with you, as a policyholder.

$23,000

Average cost to resolve an accountants professional liability claim

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Claim Scenarios

The Berkley Select claims staff stands out as a team of in-house, experienced professionals empowered to resolve claims. While no two claims are exactly alike, the following examples illustrate a range of accountant professional liability claim scenarios.

Missed Tax Deadline

Insured CPA was retained to prepare tax returns for an individual client and an entity owned by that client. The insured did not have all the information necessary to complete the returns, so they sought and received an extension to file. When the new filing deadline arrived, the insured still did not have the information necessary to complete the returns. Rather than filing estimated returns for the client at that time, the insured waited several months until they were provided the necessary information. The IRS imposed a penalty against the client who then made a claim against the insured for the amount of the penalty plus attorney fees expended by the client to get the penalties abated. The defense and indemnity costs exceeded $250,000.

Employee Misappropriation

Insured CPA firm was retained to perform bookkeeping services and prepare tax returns for a client. One of the insured’s employees also worked part time as a bookkeeper for this client. In that capacity, she was given access to the client’s credit cards, bank accounts and checking accounts with little to no supervision. The employee ultimately embezzled over $1 million from the client over the course of several years. The client made a claim against the insured related to the employee’s theft for, amongst other things, negligent hiring, negligent supervision, professional negligence and breach of contract. The Plaintiff demanded over $1 million from the insured, but the matter resolved for under $300,000.

Professional Negligence

Insured accountant had a UK client who earned income in the US. The insured prepared the client’s U.S. tax returns from 2003 to 2015. In 2016, the client’s UK returns were audited, and the UK accounting firm the claimant retained to assist took the position that there were errors with some of the U.S. returns. The alleged errors included reporting income that was exempt, failing to report income that should have been reported, and failing to treat certain income as foreign sourced. The claimed damages were loss of U.S. tax refund for certain tax years, fees paid to the other firm to correct the alleged errors, interest and disgorgement of fees. The matter was settled without litigation.

Failure to File

Insured accountant prepared a new business entity client’s 2016 income tax returns, but allegedly failed to file documents with the state that would have qualified the entity for exemptions to the state’s franchise and excise tax. Because the entity had a loss in 2016, the client did not notice the issue. The following year, the client retained a different accounting firm, who asked the client for information in order to file a renewal exemption, and discovered that the exemption application had not been filed. The failure to qualify for the exemptions in that year resulted in the client paying a state tax of approximately $350,000, and demanding reimbursement from the insured. The matter was settled, and combined defense and indemnity costs came to $250,000.

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