Accountants Professional Liability Insurance

Frequently Asked Questions

The more you know, the better you can protect your practice and livelihood

  • Why do I need professional liability insurance?

    Tax and accounting work is complicated, and regulations are constantly changing. Anyone in this career field is susceptible to errors, oversights, misjudgments — even poor communications to and from clients — that can lead to lawsuits. Professional liability insurance provides legal assistance and financial support when conflicts arise.

  • What does professional liability insurance cover?

    Professional liability insurance, also known as errors and omissions insurance (E&O), defends you and pays any resulting damages for actual or alleged mistakes you made in providing specified professional services. For example, it protects you in the event that a client or other third party is harmed by a service or advice you provided for which you are held legally liable.

  • How much coverage do I need?

    That depends on the type of work you do, the size of your practice, and your tolerance for risk. Our plan offers several liability limits from which to choose — typically ranging from $100,000 to $1,000,000. Limits of up to $5,000,000 are available, depending upon your exposure factors.

  • When an accountant or tax preparer is sued, what are the legal costs?

    Legal defense costs, penalties, and settlement costs vary considerably. A recent analysis of claims indicated the average cost was $223,800, with the high being $1,057,600 and the low being $45,100. These figures do not include deductibles or penalties paid by the insured in addition to insurance company payments.

  • What does coverage cost?

    Annual premiums vary, depending on the type of tax, accounting or bookkeeping work you do, the size of your practice, and the liability limit and deductible you choose. Premiums begin at approximately $400 per year, escalating from there based on the size and scope of the practice.

  • How do I get a quote?

    Complete the online questionnaire to the right. It will generate an input-capable PDF application, which you can complete, print and mail to: Forrest T. Jones & Company, Attn: Rick Jones, P.O. Box 418131, Kansas City, MO 64141-8131. Or fax the application to (816) 751-6000, or email a copy of it to Ladonna Filler at lfiller@ftj.com.

  • I’m not sure how to answer some of the questions on your application. Who can I talk to?

    If you need assistance in completing your application or have other questions, you can receive expert advice by calling us at (800) 821-7303, ext. 1157. Agents are available Monday through Friday, except holidays, from 8:00 a.m. to 5 p.m. CST.

  • Can I pay my premium in installments?

    Yes. Flexible installment plans are available for a small fee, depending upon the amount of premium.

  • What’s the significance of the NSA endorsement?

    After months of research and consultation with the NSA board and with individual members, NSA determined that the Accountants Professional Liability Program provides broad coverage options and excellent customer service, and it addresses the exposures most frequently faced by NBA members.

  • What about prior acts? I currently have coverage with another insurance company. How difficult is it to transfer to Travelers 1st Choice+?

    Switching is easy. Coverage for prior acts is available if you provide evidence that you have maintained continuous coverage of comparable E&O insurance.

  • I’m a tax preparer. I don’t perform audits, sell securities, or do other specialized accounting work. How is this plan suited for me?

    Besides the availability of varied limit and deductible options appropriate to your particular circumstances, premiums are based on your revenues plus several other factors. For example, if you provide only tax preparation for individuals and small businesses, your “rate” would be lower than a firm of the same size revenue that provides higher exposure activities, such as services for large companies, reviews, and audits. On the other hand, if your firm were to expand into other accounting services, it’s good to know that the policy you already have would probably cover those services, and be priced accordingly.

  • The policy I have now doesn’t expire for some time, but I’m unhappy with my current insurance company and want to find new coverage immediately. Can you help me?

    Sure - sometimes people are dissatisfied with their agent or company, or have an exposure that their current policy doesn’t cover. Please call (800) 821-7303, ext. 1157. Provide a brief explanation why you’d like a quote now to replace your current coverage (because insurance companies typically don’t provide quotes far in advance of an expiration/renewal date).

  • I don't have professional liability insurance now. How quickly can I get it?

    It typically takes less than a week once the completed application is received, but if you have circumstances requiring an urgent turn-around, please alert us when you submit the application.

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Endorsed by the National Society of Accountants

The Accountants Professional Liability Insurance Plan is endorsed by the National Society of Accountants and administered by Forrest T. Jones & Company, a national leader in association insurance programs for more than 50 years.