Applying for CPA Professional Liability Insurance

CPA professional liability insurance is essential for individually practicing attorneys and large firms alike. These policies protect attorneys against legal suits brought against them because of damages caused by errors committed through the course of their work. Because these errors have the potential to be far-reaching and have grave consequences for their clients, liability suits can often be very costly for attorneys.

 

When applying for CPA professional liability insurance on behalf of a firm, certain eligibility requirements often must be met in order to qualify for top policies. These are some of the qualifications insurance providers often look for.

 

Total Revenue

 

This refers to the total annual revenue made by the firm or attorney. Revenue is generally calculated before taxes, and it includes money made during the year from all sources of income.

 

Number of Attorneys

 

Some insurance policies require a firm to have a minimum number of working attorneys in order to qualify. This number is generally not too high, and is only in place to separate policies designed for firms from policies designed for individuals.

 

Number of Past Claims

 

The number of past claims filed against the firm is generally taken into account, and bonuses may be awarded for firms that have no prior claims.

 

Established and successful firms are often eligible for better CPA professional liability insurance policies. However, even firms that are just starting out ought to carry this essential type of insurance.