Accountants & Auditors E&O (Errors & Omissions)
As accounting professionals and auditors, errors and oversights have a direct financial impact on your clients (and their investors/lenders), resulting in costly and time consuming litigation. Unfortunately even the strongest internal controls and “best practices” cannot prevent the inevitable. Mistakes and oversights will occur, and even when they don’t, accusations (with or without merit) can be costly and time consuming to defend. With each new regulatory change, such as the recent affordable care act, the potential for claims increases. Risk profiles also differ depending on the type of work and industries serviced. While auditors and accountants servicing the financial sector may see greater claim severity and increased 3rd party liability, firms servicing the healthcare industry are exposed to different regulatory requirements such as HIPAA compliance. Cyber security, potential data breaches and usage of cloud providers pose yet additional threats that firms must now navigate. While internal audits and loss prevention is recommended, a well structured professional liability insurance program is one of the only ways to truly mitigate that risk and protect your firm.
When structuring insurance programs or comparing proposals however, it is important to understand that professional liability (E&O), executive liability (D&O) and cyber policies are substantially different than more typical “commoditized” type products such as general liability or auto insurance. Unlike most insurance policies, there is no standardization. Critical coverage differences are often embedded deep in the policy verbiage and can have significant coverage implications. These terms and clauses can be easily overlooked and difficult to locate, making proper comparisons difficult if at all possible. Basing purchasing decisions solely on premium is also ill advised. Partnering with an experienced broker is a critical component of building a well structured program. Partnering with brokers that understand “claims-made” policies also help ensure coverage continuity when changing carriers, and avoiding claim declinations when claims arise. As a boutique brokerage with a concentration on both professional services and professional liability (E&O), GB&A is well aligned to meet the insurance needs of (larger) small accounting firms and mid sized firms.