The 2023 Accountants Malpractice Liability Insurance Buyer's Guide

Carrier: Philadelphia Indemnity Insurance Co.
Type of coverage: Claims made. Several complementary coverage lines: BOP, crime, D&O, EPLI, cyber/privacy, EBL.
Policy limits: Up to $5 million
Client profile: Typically firms with under 100 professionals and less than $5 million annual revenue providing traditional accounting and tax services. Superior larger firms are considered. 
A.M. Best rating: A++
Criteria for premium credits: Client engagement letters; greater than three years in practice; emphasis on tax, bookkeeping, compilation; infrequent fee disputes; written client screening procedures; CPE; unqualified peer review; loss control seminar; and claims-free.
Covered acts: Broadly defined professional services subject to policy wording. Includes tax, compilation/write-up, reviewed statements, audits, management advisory services, basic financial planning, and witness/litigation support for financial matters, trustee, receiver and executor, notary, personal fiduciary, consulting in the course of practice of accountancy, for policies with Pro-Pak enhancement, $5,000 in coverage for services as nonprofit director or officer.
Coverage of assurance services: No coverage restriction by nature of assurance service. 
Contact: 
Bill Rooney
(610) 538-2199
bill.rooney@phly.com

Carrier: Great American Insurance Co.
Type of coverage: Claims made with incident reporting features. Cybercrime endorsement featuring broad coverage with separate limits. Cyber coverage, employment practices and life insurance available as optional coverages.
Policy limits: $100,000 to $5 million. Higher limits may be available.
Client profile: Available for all sizes and areas of practice. Eligible firms may also choose $0 deductible and two-year policy options.
A.M. Best rating: A+ 
Criteria for premium credits: Loss-prevention seminars for premium credits; loss experience; risk characteristics of the firm. Free and confidential legal hotline; pre-claims service and exclusive risk management website.
Covered acts: Professional services performed or advice given in practice of accounting, and services performed within the accountant-client relationship even if they can be performed by non-accountants, including services as a trustee, conservator or similar fiduciary capacity, software consulting and financial advising. 
Coverage of assurance services: Insurance for technology consulting, personal financial planning and litigation support service is built into the main policy form. 
Contact: 
joanmarie@landy.com
(781) 292-5407

Carrier: Continental Casualty Co. (underwriter) and Aon Insurance Services (national program administrator)
Type of coverage: Claims made and reported professional liability insurance. Cyber, crime, employee dishonesty, employment practices and management liability coverage also available.
Policy limits: $100,000 to $10 million for qualified and eligible firms; split limits and separate defense limits available. Per claim and aggregate deductibles starting at $0 available for qualified and eligible firms. Separate cyber liability limits available for privacy event expense, network damage claim expense, business interruption, regulatory fines and penalties, and extortion coverage up to $2,000,000 aggregate. New endorsements available with separate limits to address the risks CPA firms face today including management liability, liability, employment practices liability and crime coverage.
Client profile: CPA Value Plan: Designed for sole practitioners and smaller firms who practice lower risk services. Online purchase available for new applicants and renewals. Premier Plan: Small and midsized firms. Coverage may be customized for unique firm needs. Regional Firm Plan: Broad coverage available for larger firms up to and including the AICPA's Major Firms Group and Group of 400. 
A.M. Best rating: A 
Criteria for premium credits: Membership in AICPA Governmental or Employee Benefit Audit Quality Centers; membership in PCPS section of the AICPA (not available in Tennessee); peer review rating of pass; longevity as program member; use of engagement letters; claim-free experience; or participation in the program's risk control training. 
Supplementary benefits include: pre-claim assistance; subpoena assistance; regulatory inquiry assistance; and reimbursement for time away from office to attend a mediation, arbitration, court hearing or trials. Risk management incentives include deductible reduction for early mediation, and for use of engagement letters 
Covered acts: Claims that are first made and reported in writing during the policy period by reason of an act or omission in the performance of professional services. Broad definition of "professional services." Also available are prior acts coverage and extended claim reporting period options.
Coverage of assurance services: Provides coverage for services performed in the practice of public accountancy, including assurance services.
Contact: 
Alvin Fennell 
(800) 221-3023