Cover Your Assets. Protect Your Practice.
As a Certified Public Accountant (CPA), clients trust you with one of their most valuable assets: their financial health. But even the most skilled and careful professionals face risks. A single mistake, oversight, or misunderstood tax strategy can lead to costly lawsuits and reputational harm.
That’s where professional liability insurance comes in – or as we like to say, “CYA for CPA.”
What Is Professional Liability Insurance for CPAs?
Professional liability insurance (often called Errors & Omissions, or E&O coverage) protects accountants and firms from claims related to:
- Errors in financial statements or tax filings
- Failure to meet deadlines (such as filing late tax returns)
- Alleged negligence or oversight in financial advice
- Misinterpretation of tax laws or financial data
Even if a claim is unfounded, legal defense costs alone can be devastating.
Why “Cover Your Assets” Matters for CPAs
Most Houston area CPAs assume that general liability insurance is enough. But general liability only protects against things like slip-and-fall accidents in your office – it won’t protect you if a client sues you over financial work.
Professional liability insurance fills that gap. It covers:
- Attorney and court fees
- Settlements or judgments
- Certain disciplinary proceedings
For small practices or independent CPAs, this type of coverage can mean the difference between continuing to serve clients or closing your doors.
Real-World Scenarios Houston CPAs Face
- A client claims you miscalculated their deductions, resulting in IRS penalties.
- An investor sues after relying on financial statements you prepared.
- A tax return is filed late due to miscommunication, and the client demands reimbursement.
These situations can happen to any accountant, even when you’ve done everything by the book.
How Hi-Lo Insurance Helps CPAs
At Hi-Lo, we understand that no two practices are alike. Our concierge-style approach means we’ll:
- Review your business risks in detail
- Shop top carriers to find tailored protection at the best value
- Support you with ongoing service, so your coverage grows with your practice
Final Thoughts
As a CPA, you’ve worked hard to build trust and credibility with your clients. Don’t let an unexpected lawsuit put that at risk.
It’s time to CYA: Cover Your Assets. Protect Your Practice.
Learn more about tailored professional liability insurance for CPAs at Hi-Lo Insurance. Contact us today for a complimentary coverage review.
Learn more and explore options on our Commercial Insurance page.
