CPA Insurance in Massachusetts

What is CPA Insurance?

Accountants are entrusted by their clients with significant responsibilities, and there are certain risks that accompany those responsibilities. Should a misread number or incorrect calculation financially cost a client, a CPA firm may be held liable for damages. CPA Insurance policies help certified public accountants working in Massachusetts shield themselves from a variety of covered risks like these.

CPA insurance policies are specialized commercial policies that uniquely meet the risk mitigation needs of certified public accountants and their firms. So that policies can protect CPAs from multiple risks, the policies are normally written as packages that come with multiple individual coverages.

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Who in Massachusetts is Accounting Insurance Right For?

In general, most professionals who work as certified public accountants in Massachusetts ought to carry an accounting policy. This normally includes both solo accountants and firms of all sizes regardless of any specialization. Not having insurance can be costly if something happens, and this tends to be a sensible way to protect these firms.

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What Coverages Does Accounting Insurance Make Available?

There are a number of coverages that accounting insurance policies often make available. Depending on an accounting policy’s terms, some fo the coverages that are offered may include:

Professional liability coverage is also called “errors and omissions” or “E&O” coverage. While all of these coverages may be important, professional liability is particularly important given the detailed nature of accounting.

What Types of Policies Can Accountants Purchase?

As mentioned, many accounting policies are package policies that have multiple coverages. While professional liability coverage is available as a stand-alone policy, most firms need at least some of the coverages noted above and therefore end up with a package policy. Firms with basic additional needs might find that a business owners policy adequately meets their needs, while firms with more needs typically get a commercial package policy.

Are Breaches of Fiduciary Responsibility Covered by Accounting Insurance Policies?

In most cases, accountants stay independent from their clients and don’t assume the role of a fiduciary. Sometimes, however, becoming a fiduciary is unavoidable. When the role can’t be avoided, it’s important to make sure that an accounting insurance policy covers alleged or actual breaches of the responsibility.

Not all accounting policies offer coverage for this risk, and those that do sometimes offer only limited protection in the event of a breach. If this protection is needed, An insurance agent who’s familiar with this type of policy can research whether a particular policy offers fiduciary protection, and they can also help accountants who need such coverage find a policy that does offer the protection if their current policy doesn’t.

How Can Massachusetts Accountants Get CPA Insurance?

If you’re an accountant and need insurance, contact the independent insurance agents of Roger Butler Insurance. Our Massachusetts agents have assisted many profession

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