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McGowanPRO is a national agency that specializes in procuring Professional Liability Insurance. On average, each of our executives and producers have over 15 years of experience in the professional liability industry.

Contact us and you will speak directly with someone who is experienced in professional liability and will work with you to obtain the best options for your business.

Accountants Professional Liability Insurance Articles

Risk Management

 

High Profile Clients and their exposure to Accounting and Investment Professionals
High profile clients are generally an attractive market segment, but they also potentially cause higher exposures. If you have high profile clients, we recommend taking proactive risk management measures, and identifying these measures to your insurance carrier up front to mitigate underwriting concerns.

7 Questions on your Application that are Important to your Professional Liability Insurance Coverage
Experienced Underwriter, Sue Hillegass, explains why your renewal application is actually an important tool in assuring the appropriate coverage for your firm. Updating your firm's information is critical to matching your insurance coverage to your attributes and risk exposure.

Mitigating CPA Malpractice
Professional liability claims faced by CPAs will never be eradicated, but they can be reduced if solid risk management and constant adherence to professional standards are followed. Follow these techniques to help lessen exposure in the increasingly litigious environment in which CPAs practice.

Retention of Client Records - FAQ's - Sample Policies
Concern about how long engagement files should be retained is a common issue among accounting firms.  There is frequently a conflict between the desire to discard older files to free up storage space, and the inherent reluctance to discard documents which contain a detailed record of the work which you have performed.

Evaluating your Exposure as a Director or Officer
Understanding your potential exposure as a director or officer is essential to protecting not only your entity but your personal liability. Acting as a director or officer creates personal exposure and can impact coverage under your errors & omissions policy. 

Trustee Liability and Exposure
If you have been asked to, or are currently acting as, a Trustee you will want to understand if this is covered under your Professional Liability policy. In addition, you will want to understand what is the potential exposure and what steps you can take to mitigate. 

War Story: Why Coverage Really Does Matter
It can be tempting to purchase insurance coverage based on premium cost. However, this true claim story provides insight as to why small premium savings can be very costly. 

Suits for Fees and ways to avoid them
Proactively taking steps to reduce the potential for unpaid fees is your best defense to avoiding potential suit for fees. There are three basic billing practices which, when implemented regularly and effectively, can dramatically reduce the number of collection problems your office will face. 

 

Policy & Coverage Issues

 

Infographic: 5 claims not covered by professional liability insurance
Professional Liability Insurance is an essential element of protecting your business.  However, understanding what is - and what is not - covered by your professional liability policy can potentially save you from disaster in the future.

Understanding the Hammer Clause, and it's Impact on your Professional Liability Insurance
The Hammer Clause (aka cooperation clause or consent to settle clause) is a provision found in most professional liability insurance policies. Understand it's potential impact on your coverage.

Naming your client as an additional insured
You may have clients that request you include them as an additional named insured on your professional liability policy. They believe that being included as a named insured or additional insured, provides them further protection should a claim arise. This may be true for some forms of insurance, but it can be exactly the opposite for professional liability polices.  

Process for reporting a potential claim / subpoena
You purchase insurance to protect your practice from potential claims. When a claim, or subpoena, does arise it is important to report it correctly to your carrier to ensure the appropriate response and coverage. Learn more about claim reporting 

Policy condition: avoid voluntary admission of guilt
Many professional liability policies have a condition that prohibits (except at your own cost) making any voluntary admission of liability, settle any claim, assume any obligation, and/or agree to any means of resolution to a dispute without carrier consent. Violation of a policy condition may impact your rights under your policy and limit coverage.

 

Engagement & Client Letters

 

Engagement Letters Website
McGowanPRO maintains an extensive website dedicated to providing relevant engagement letter information and sample letters.

IRC 7216 Sample Consent forms & Guidance
Unless section IRC 7216 specifically permits the disclosure or use of tax information, a tax return preparer may not disclose or use a a taxpayer's tax return information prior to obtaining a consent from the taxpayer. 

Negative Engagement Letters
A Negative Engagement letter is one that includes wording that indicates even if the client does not sign the letter, certain action taken by the client (submission of tax returns) will be deemed as acceptance of the engagement letter terms. 

Report of Foreign Bank and Financial Accounts - FBAR
The IRS has announced a new 2011 Offshore Voluntary Disclosure Initiative that runs through Aug. 31, 2011. Learn more about FBAR including important sample FBAR wording to add to your engagement letters. 

Acceptance Agents - Sample Engagement Letter
If you are a Certifying Acceptance Agent to assist clients with obtaining ITINs, read our resources, and download our Sample Engagement Letter essential to these services. 

 

Identity Theft / Data Protection

 

State Security Breach Laws - Summary by State
At least 46 states have enacted data breach notification laws.  McGowanPRO summarizes the essential information for each state including; definition of "personal information", notification requirements, penalties, and links to full statutes and laws.

What to do if you have a Client Data Breach
It seems that personal information (social security numbers, credit card numbers, bank account numbers, even name and address) is one of the few things that is increasing in value these days. And, you likely have some form of your client's personal information in your possession. What do you do if this data is compromised?

Protecting Client Data from Identity Theft
Best Practices Personal information can exist in either a physical or electronic form. Regardless of the form in which the information exists, the standard of protection remains, only the implementation of that protection changes.