We provide professional liability insurance, also called errors and omissions insurance, to Michigan accountants, CPAs, enrolled agents, tax preparers, bookkeepers, and other accounting professionals. We have access to multiple insurance carriers that write accounting professional liability insurance and can find coverage for all types or risks in Michigan, from the small bookkeeping business to the large multi-state audit firm.
We also provide all other insurance coverages that Michigan accounting professionals might need, including general liability, workers' compensation, business packages, and management liability insurance.
What coverage does a professional liability insurance policy provide Michigan accountants?
Professional liability insurance provides coverage for claims made against Michigan accountants by reason of a negligent act, error or omission in the performance of professional accounting services. Some policies provide coverage for defense and expenses incurred to investigate, defend, or appeal a disciplinary or regulatory proceeding. Some policies also provide coverage for other accounting-related services, such as investment advice, personal fiduciary, notary public, arbitrator, or mediator.
What rating factors impact accounting professional liability insurance premiums in Michigan?
The basic premium rating factor for Michigan accounting professional liability insurance is typically the amount of gross revenue or the number of professionals, or a combination of the two such as gross revenue per professional. This means that the larger the firm, the higher the premium. Policy limits and deductibles are other common rating factors. Higher policy limits result in higher premiums while higher deductibles result in lower premiums. The claim experience is another common factor and accounting firms with claims in the past few years will usually pay more than those without claims.
There are various other rating factors which are used in the calculation of the premium and which vary by insurance company. The use of engagement letters is often used as a rating factor and accounting firms in Michigan which use them regularly will tend to have a lower premium. The types of services provided can also have a significant impact on the premium and services such as the audit of public companies are significantly more expensive to insure than bookkeeping and tax preparation. The territory where the accounting firm is located can also impact the premium.
There are multiple other rating factors which can impact the cost of an accounting professional liability insurance policy in Michigan. As we have access to multiple insurance carriers, we are usually able to provide policy and premium options from different carriers.