Accountants and Legal Malpractice Insurance covers professional liability for errors, omissions, or breaches of duty in legal or accounting services. Required protection for CPAs, attorneys, and fiduciaries.
Accountants & Legal Malpractice Insurance
What Is Malpractice Insurance for Accountants and Lawyers?
Malpractice Insurance for accountants and attorneys is professional liability coverage that protects against claims of negligence, errors in judgment, and omissions that lead to client losses. It’s often referred to as Accountants’ E&O or Legal Malpractice Insurance.
Why Do Professional Firms Need It?
When your clients depend on your advice for compliance, finance, or legal defense, the stakes are high. A small mistake or missed deadline can cause massive financial or reputational harm. Malpractice coverage helps ensure your firm survives litigation.
Who Needs Accountants & Legal Malpractice Insurance?
- Certified Public Accountants (CPAs)
- Bookkeepers and tax advisors
- Solo attorneys and law firms
- Estate planners and real estate attorneys
- Regulatory compliance professionals
What Does Accountants & Legal Malpractice Insurance Cover?
- Negligent tax filing or financial reporting
- Missed legal deadlines (statutes of limitations)
- Errors in financial advice
- Breach of duty or failure to follow client instruction
- Conflicts of interest and confidentiality lapses
- Defense costs, settlements, and judgments
What Doesn’t Accountants & Legal Malpractice Insurance Cover?
- Intentional misconduct
- Criminal activity or fraud
- Bodily injury/property damage
- Client disputes over fees or billing
- Claims outside the policy period
How Much Does Accountants & Legal Malpractice Insurance Cost?
Key Cost Factors:
- Area of practice or specialization
- Annual revenue
- Number of clients and staff
- State and jurisdictional risk
Typical Cost Range:
- Solo professionals: $500–$2,000/year
- Small firms: $3,000–$10,000/year
- Medium-sized practices: $12,000–$25,000+/year
Risk Management Tips
- Use formal engagement letters that define the scope of services, limitations, and disclaimers.
- Implement a documented conflict-of-interest check process before taking on new clients.
- Maintain records of all client advice, filings, and deadlines met or missed.
- Use internal audit or second-review processes for high-risk work (e.g., tax filings, litigation).
- Keep software and compliance systems up to date with current tax and legal standards.
- Avoid giving advice or services outside your area of expertise.
Talk to An Expert
Our dedicated experts are ready to provide tailored insurance solutions to clients across a wide range of industries and specialized services.
Schedule a consultation to see how Alliance Risk can reduce your insurance risk.
– We look forward to partnering with you.