AICPA Insurance: An Overview

As a certified public accountant, protecting your business and clients is an essential aspect of your career. One way to do this is by investing in insurance policies designed specifically for the accounting profession. The American Institute of Certified Public Accountants (AICPA) provides such policies to its members. In this article, we will discuss what AICPA insurance is, what it covers, and how to enroll.

What is AICPA Insurance?

AICPA insurance is a suite of policies designed to meet the unique needs of CPAs. The policies cover a range of risks, such as professional liability, cyber liability, and employee benefits liability. The insurance is available exclusively to AICPA members, and the policies are underwritten by a leading insurance company.

The AICPA offers two types of insurance policies: primary and excess. Primary policies cover claims directly related to the policy, while excess policies provide additional coverage above and beyond the primary policy limits.

What Does AICPA Insurance Cover?

AICPA insurance policies provide coverage for a range of risks that CPAs face. Here are some of the policies and coverages available:

Professional Liability Insurance

Professional liability insurance protects CPAs from claims of negligence or errors and omissions. It covers damages, defense costs, and settlements. This type of policy is essential for any CPA who provides services to clients.

Cyber Liability Insurance

Cyber liability insurance provides protection for CPAs against data breaches, cyber attacks, and other cyber risks. It covers costs associated with notifying clients of a breach, legal fees, and reputational damage. This type of policy is crucial for any CPA who handles sensitive client information.

Employee Benefits Liability Insurance

Employee benefits liability insurance covers claims related to errors or omissions in employee benefit plans. It can protect CPAs from claims such as failure to enroll eligible employees, failure to provide adequate coverage, or failure to comply with ERISA regulations.

Workers’ Compensation Insurance

Workers’ compensation insurance provides coverage for employees who are injured on the job. It covers lost wages, medical expenses, and rehabilitation costs. This policy is required by law in many states.

How to Enroll in AICPA Insurance

Enrolling in AICPA insurance is a straightforward process. Here’s how to do it:

Step 1: Become an AICPA Member

To enroll in AICPA insurance, you must be an AICPA member. Membership is open to certified public accountants, students in accounting programs, and non-CPAs who work in the accounting profession. To become a member, visit the AICPA website and follow the instructions.

Step 2: Choose Your Insurance Policy

Once you’re an AICPA member, log in to the AICPA insurance website and select the policies you want to purchase. You’ll need to provide information about your business, such as the number of employees and the type of services you provide.

Step 3: Get a Quote

After you’ve selected your policies, you’ll receive a quote that outlines the coverage and pricing. You can adjust the coverage limits to fit your needs and budget.

Step 4: Purchase Your Policy

If you’re satisfied with the quote, you can purchase your policy online. You’ll need to provide payment information and sign the policy documents.

FAQ

Q: What Makes AICPA Insurance Different from Other Insurance Policies?

A: AICPA insurance policies are specifically designed for CPAs, which means they offer tailored coverage that meets the unique needs of the accounting profession. Additionally, the policies are underwritten by a leading insurance company with a strong financial rating, which provides peace of mind knowing that your claims will be paid.

Q: How Much Does AICPA Insurance Cost?

A: The cost of AICPA insurance varies depending on the policies and coverage limits you select. However, AICPA insurance is generally competitive with other insurance policies on the market.

Q: What Happens if I Need to Make a Claim?

A: If you need to make a claim, contact AICPA insurance immediately. The claims process is straightforward, and you’ll be assigned a dedicated claims representative who will guide you through the process.

Q: Can I Cancel My Policy?

A: Yes, you can cancel your policy at any time. However, if you cancel mid-term, you may be subject to a cancellation fee.

Q: Is AICPA Insurance Only Available to CPAs?

A: No, AICPA insurance is available to a range of professionals in the accounting field, including bookkeepers, tax preparers, and accountants in industry.

Conclusion

Investing in insurance policies is a crucial aspect of protecting your business and clients as a CPA. AICPA insurance provides tailored coverage that meets the unique needs of the accounting profession. From professional liability to cyber liability, these policies cover a range of risks that CPAs face. Enrolling in AICPA insurance is a straightforward process and provides peace of mind knowing that you’re covered.