The American Institute of Certified Public Accountants (AICPA) offers a range of insurance plans designed to protect businesses from various risks. These plans are specifically tailored to meet the unique needs of accounting professionals and their firms. In this article, we will explore the different types of business protection plans offered by the AICPA, their features, and benefits.
Overview of AICPA Insurance Plans
The AICPA offers a variety of insurance plans to protect businesses against risks such as professional liability, business interruption, and cyber attacks. These plans are designed to provide financial protection and peace of mind for accounting professionals and their firms. The AICPA insurance plans are underwritten by reputable insurance companies and are available to AICPA members and their firms.
Professional Liability Insurance
Professional liability insurance, also known as errors and omissions (E&O) insurance, is a type of insurance that protects accounting professionals against claims of negligence or errors in their work. This type of insurance is essential for accounting firms, as it can help to cover the costs of defending against claims and paying damages. The AICPA offers professional liability insurance through its Accountants Professional Liability Plan, which provides coverage for accounting firms and their professionals.
| Plan Feature | Description |
|---|---|
| Policy Limits | $100,000 to $10 million |
| Deductible | $1,000 to $50,000 |
| _coverage Territory | United States and its territories |
Business Interruption Insurance
Business interruption insurance is a type of insurance that provides financial protection in the event of a business interruption, such as a natural disaster or cyber attack. This type of insurance can help to cover the costs of lost revenue and extra expenses incurred during the interruption. The AICPA offers business interruption insurance through its Business Income Protection Plan, which provides coverage for accounting firms and their professionals.
The plan features include:
- Business income coverage: Reimburses lost revenue during the interruption period
- Extra expense coverage: Reimburses extra expenses incurred during the interruption period
- Ordinary payroll coverage: Reimburses ordinary payroll expenses during the interruption period
Cyber Liability Insurance
Cyber liability insurance is a type of insurance that provides financial protection against cyber attacks and data breaches. This type of insurance can help to cover the costs of responding to a cyber attack, including notification and credit monitoring expenses. The AICPA offers cyber liability insurance through its Cyber Liability Protection Plan, which provides coverage for accounting firms and their professionals.
The plan features include:
- First-party coverage: Reimburses costs associated with responding to a cyber attack, including notification and credit monitoring expenses
- Third-party coverage: Reimburses costs associated with defending against claims and paying damages resulting from a cyber attack
- Cyber risk management tools: Provides access to cyber risk management tools and resources to help prevent cyber attacks
What is the purpose of professional liability insurance for accounting professionals?
+Professional liability insurance, also known as errors and omissions (E&O) insurance, is designed to protect accounting professionals against claims of negligence or errors in their work. It can help to cover the costs of defending against claims and paying damages.
What types of businesses are eligible for AICPA insurance plans?
+AICPA insurance plans are available to AICPA members and their firms, including accounting firms, certified public accountants (CPAs), and other accounting professionals.
How do I apply for an AICPA insurance plan?
+To apply for an AICPA insurance plan, you can contact the AICPA directly or work with a licensed insurance professional. You will need to provide information about your business, including your firm's size, location, and type of services offered.
In conclusion, the AICPA offers a range of insurance plans designed to protect businesses from various risks. These plans include professional liability insurance, business interruption insurance, and cyber liability insurance. By understanding the features and benefits of these plans, accounting professionals and their firms can make informed decisions about their insurance needs and protect themselves against potential risks.
