Every business needs insurance for protection against risks. As an accountant, you can commit errors when preparing financial statements, filing taxes, and doing audits for clients. Therefore, accounting firms need errors and omissions for accountants to protect against risks.
When it comes to E&O insurance for accountants in California, there are many reputable insurance companies in the cities that you can consider. Before we go into details, let's see some facts about California.
California is the most populous state in the United States and the third-largest by land area. The state of California has 482 cities, including Los Angeles, San Diego, San Jose, San Francisco, Fresno, Sacramento, Long Beach, and Oakland. It shares borders with Oregon to the north, Nevada, and Arizona to the east, and Mexico to the south.
Furthermore, it has the largest economy of any state in the US and is dominated by sectors such as technology, entertainment, agriculture, tourism, and aerospace. However, the insurance and accounting industries are not left out.
How many insurance companies are there in California? According to data by the California Department of Insurance, there are over 1,500 insurance companies in California. Also, there are more than 320,000 insurance agents and brokers in California in 2023.
According to the California Board of Accountancy, there are over 5,000 accounting firms in California and nearly 81,000 Certified Public Accountant (CPA) licensees.
With this information, it's crystal clear that the errors and omissions insurance for accountants market will be huge in a few years. If you own an accounting firm in California, it is crucial to get insurance coverage so that you can be on the safe side in the case of lawsuits from clients resulting from your services.
Best Errors and omissions insurance for Accountants In California
Our team at TrendingAccounting went around California to search for the best errors and omissions insurance providers for accounting professionals. Here are a few insurance companies that are known for providing E&O insurance to accountants in California:
Hiscox is a well-known insurance company that offers E&O insurance specifically for accountants. The insurance company has offices in California and covers small and medium-sized businesses (SMBs) across different industries.
Some insurance products they offer include professional liability insurance, general liability insurance, cyber liability insurance, property insurance, and specialty risk solutions.
CNA is a leading insurance provider in the United States with a strong presence in professional liability insurance market. They have offices in cities in California, including Brea, Los Angeles, San Diego, and San Francisco.
In their offices in California and the US, they collaborate with independent agents and brokers to provide personal service to their new and exciting customers. Furthermore, they offer E&O insurance for accountants that includes coverage for negligence, errors, omissions, and other professional liabilities.
If you are a resident of California, Travelers insurance shouldn't be new to you. Travelers is another reputable insurance company that offers E&O insurance coverage for accounting Professionals (CPAs), including bookkeepers, enrolled agents, tax preparers, and small and mid-sized accounting firms.
Furthermore, Travelers have been in this industry for a long period and are aware of potential mistakes in professional services. Hence, they provide custom solutions for accounting professionals, with coverage options that address the unique risks accountants face in their day-to-day operations.
Do you want the best errors and omissions Insurance for accountants in California? Chubb Insurance has what you are looking for. They are known for their comprehensive coverage options and excellent customer service.
Furthermore, they can tailor their services to meet your specific needs. Apart from E&O insurance, they provide other coverages, such as business Interruption Insurance, business owners' policy, commercial auto insurance, cyber liability insurance, and many more. Contact them today, and you won't regret what you did.
5. AXA XL
AXA XL is a global insurance provider that offers E&O insurance coverage for accountants. They have offices in almost every state in the US. In California, they operate at 1331 N. California Boulevard, Suite 200 94596 Walnut Creek, California, United States.
AXA XL has a team of professionals who are ready and available to help you solve your problems regarding insurance. They cover claims arising from professional negligence, errors, and omissions, with additional services such as risk management resources.
How much does Errors and Omissions insurance cost in California?
The cost of E&O insurance premiums in California varies depending on the nature of the business. For an accounting firm, the average cost of Error and Omissions insurance is approximately $773 per year or $60 per month. It's important to note that Insurance premiums are higher for higher-risk elements.
What Does Error And Omissions Insurance For Accountants Cover?
E&O insurance for accounting professionals covers the following:
- Professional negligence
- Errors or omissions in accounting services
- Financial losses incurred by clients due to accounting errors or incorrect advice
- Legal defense costs for professional liability lawsuits
- Data breach liability, including breach notification and credit monitoring expenses
- Coverage for losses resulting from employee dishonesty, fraud, or theft
- Protection against claims of misrepresentation or misleading statements
- Coverage for claims arising from breach of contract related to accounting services
- Legal expenses associated with regulatory investigations
- Prior acts coverage for claims arising from past accounting services
- Coverage for defense costs, settlements, or judgments up to policy limits
How Can You Save Money On Errors and Omissions Insurance In California?
You can save money on E&O insurance through the following:
- Shop around and compare quotes from multiple insurance providers.
- Evaluate the coverage your business need and avoid overinsuring.
- Implement strong risk management practices to show proactive risk reduction.
- Consider adjusting your deductible to lower your premium.
- Maintain a good claims history by addressing issues promptly.
- Inquire about discounts for bundling errors and omissions insurance with other policies.
- Look for risk-specific coverage tailored to your profession or industry.
- Check if professional associations or trade groups offer group insurance programs.
- Maintain a good credit score, as it can impact your premium.
- Finally, review your policy often to ensure it aligns with your evolving business needs.
Choosing the best E&O insurance for accountants in California is crucial for protecting your professional practice. Before opting for a provider, you must consider the coverage, sufficient limits, claims handling, optional coverages, premiums, and financial stability.
For further details, you can contact an insurance company offering professional liability coverage for accountants in California. You can discuss what you want, evaluate their policy, and ask for quotes for your specific needs before you decide on the best coverage.
The right E&O insurance provides financial protection and support in the face of liability claims. Don't delay! Buy the best errors and omissions insurance to protect your reputation today.