Accountants

Accounting professionals face a distinct set of risks, particularly claims related to errors in tax preparation, financial reporting, auditing, or advisory services. Professional liability insurance, also known as errors and omissions (E&O) coverage or CPA malpractice insurance, is the foundational protection for any accounting firm. Depending on your firm's size and structure, you may also need general liability, cyber liability, and employment practices liability (EPLI) coverage.

Professional liability policies for CPAs and accounting firms are typically written on a claims-made basis, meaning coverage applies to claims filed while the policy is active, not necessarily when the work was performed. This makes two policy features especially important to understand: prior acts coverage, which extends protection back to work done before the policy started, and extended reporting periods, also called tail coverage, which protects you after a policy ends or when you switch carriers. PCIA will walk you through these details so there are no gaps in your protection.

Coverage recommendations are based on several factors specific to your practice, including firm size, the nature of services you provide, the types of clients you serve, and your historical claims experience. We work with carriers that specialize in professional liability for financial professionals, so the options we present reflect the actual risk profile of your firm rather than a generic estimate based on industry averages.

Increasingly, yes. Accounting firms handle highly sensitive financial data, including tax returns, payroll records, and banking information, that makes them attractive targets for cybercriminals. A data breach or ransomware attack can trigger regulatory obligations, client notification costs, and liability claims that a standard professional liability policy will not cover. Cyber liability insurance for accounting firms addresses these first- and third-party exposures specifically. PCIA can help you evaluate the right level of cyber coverage for the data your firm manages.