CHES Special Risk shines spotlight on risks faced by accountants
CHES Special Risk shines spotlight on risks faced by accountants | Insurance Business Canada
Professional Risks
CHES Special Risk shines spotlight on risks faced by accountants
Brokers urged to ensure their accounting clients are adequately covered
Professional Risks
By
Terry Gangcuangco
Managing general agent CHES Special Risk, which offers comprehensive errors and omissions (E&O) or professional liability insurance, is shining a spotlight on accountants and the risks they face in their line of work.
With accounting errors ranging from miscalculations to failure in detecting fraud, CHES Special Risk is urging brokers to ensure their accounting clients are adequately covered with specialized E&O policies.
“Accounting errors can lead to substantial financial burdens for both accountants and their clients,” warned CHES Special Risk chief executive and president Gary Hirst. “Our E&O insurance provides a safety net, ensuring that accountants are protected against costly errors, lawsuits, and reputational damage.”
The company’s policies include protection for errors such as inaccuracies in financial statements and improper tax filings, as well as failures to identify fraudulent activity.
“Our goal is to provide policies that are not only comprehensive but also finely tuned to the specific challenges each profession faces,” said senior underwriter Hoang Quan Nguyen. “Our coverage ensures that professionals can operate with confidence, knowing they are protected against potential claims.”
CHES Special Risk pointed to real-world scenarios to demonstrate the importance of tailored E&O coverage for accountants. For instance, an accountant’s error in filing corporate taxes leads to penalties and back taxes owed by the client. The MGA’s E&O policy covers resulting legal fees, settlements, and damages.
In another example, an accountant’s failure to detect fraud in a client’s financial statements leads to a costly negligence lawsuit. The insurance provided by CHES Special Risk covers both defense costs and settlement amounts, shielding the accountant from significant financial exposure.
As regulatory scrutiny and financial risks mount, demand for specialized E&O insurance is increasing, particularly in sectors like accounting where errors can have serious legal and financial repercussions.
Senior underwriter Michael Chaplik stressed the importance of tailored coverage in today’s professional landscape: “We believe that expert support is crucial in the E&O insurance space. Our team works closely with brokers to understand their clients’ needs and provide customized solutions that offer the best possible protection.”
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