Accountants handle clients’ financial records. Their services are provided to both individuals and businesses. With the diversity in the work that accountants do, and the fact they are dealing with sensitive financial information, the level of risk in this industry is unique. Bodily-injury claims are not very high, but the severity of loss from financial data can be extremely high.
An accounting firm may or may not carry the Certified Public Accountant (CPA) certification. The need for the CPA certification depends on the type of work each accountant will provide and the purpose or type of financial statements the accountant will prepare for the client. The more employees a business has with proper certifications the more likely they are to get additional credits and debits offered by an insurance carrier to help off-set the cost of insurance premium.
Some accountants may also act as financial planners and offer investment advice. If they do, this also adds to the amount of risk the business takes on and can impact the type of coverage the business needs to secure and the limits they will need in response to these risks. One type of risk to consider is related to the property your office is located in. Whether you own the property or rent will have an impact on the types of coverage you will need.
A majority of insurance carriers commonly write Business Owners Policies for accounting firms with less than 50 employees. Most find that a BOP policy is the best way to go because it saves accountants 15% – 20% on their coverage when bundling policies. Buying each policy as a stand alone decreases the likelihood carriers will offer as many available credits and debits on a policy. When insurance underwriters know they are going to get multiple lines of coverage from your business they have more incentive to compete for your business. Working with an experienced independent insurance agent can help mitigate these problems and ensure your business does not have any gaps in coverage.
Common Workers Compensation Class Codes:
• 8803- Accountant, Auditor; traveling
- • 8810- Clerical; office only