Accountants

A Snapshot of Services We Assist

Accounting Exposures & Risks

Professional Indemnity

The insured’s professional liability exposure varies depending on the nature and types of service provided. This is generally significant and is one of the most important insurance lines for the accounting services profession. Accounting services advisors provide information and make recommendations in the course of providing their services. Accounting services providers are used by businesses, households and governments and the potential personal and financial risks to parties relying on an accounting service provider’s work, advice or actions will range from minor to extremely significant depending on the level and complexity of service being considered. The extent of the cover, excess, retroactive date, geographical coverage and the exclusions are just some of the components to take into account. Because accounting services providers are so broadly defined, it is not possible to be specific about the services and specialties offered, or offer comments on exposures for this product line except in general terms. Some of the more common sources of claims include:

• Breach of professional duty of care including negligent acts, advice, errors or omissions;
• Wrongful/erroneous advice and work;
• Breach of contract;
• Fraud;
• Lack of professional conduct
• Errors in financial reporting, statements of clients
• Conspiracy;
• Conflict of interest;
• Not paying attention to details
• Invasion of privacy;
• Loss of documents or data entrusted to the insured;
• Unintentional breach of confidence, confidential duty or misuse of information;
• Unintentional breaches of the Trade Practices Act; and/or
• Breaches of Data Protection/Privacy legislation.

The key issue for the underwriter/advisor is understanding the full range and nature of the business activities as well as client base. Risk management and quality assurance processes used to assist in prevention of potential breaches of professional duty and control of actual breaches of professional duty are critical. Another key element of control is in the area of client engagement and scoping of the work to be undertaken. A clear understanding of the task and services provided helps prevent possible disputes.

For accounting services providers, particularly relevant lines of enquiry include:

• The range of activities the accounting services providers is involved in and the approximate split by fees, as each of these types of work will present its own hazard;
• A general understanding of the client base including client screening, size of largest and average client etc; and
• The largest fee that the insured has received over the past two years and the average fee.

Underwriters/advisers will be interested in the following information:

• Previous loss/claims history;
• A general understanding of the client base including client screening, size of largest and average client etc;
• Revenue in latest financial year and budgeted revenue for the present financial year;
• A general understanding of the organisation structure and relationships;
• The largest fee that the insured has received over the past two years and the average fee;
• Qualifications, training and experience of the insured’s management and other staff;
• Whether the insured always acts with a high level of expertise and due diligence whilst performing their duties (i.e. reputation);
• Details of quality control and risk management in place;
• Details of insured’s record keeping and data security practice;
• Whether the insured is compliant with all relevant statutory requirements applicable to the industry (i.e. any current or prior circumstances or claims);
• Communications at the company (e.g. in relation to insurance, systems in place to ensure any changes in the coverage provided by a client’s policy is immediately notifies to the clients); and
• Length of time in business/in the area.

Cyber Liability

‍

• Heavy dependency on digital technology/integrated IT systems;
• Security/privacy breach – presence of large volumes of sensitive personal and cooperate data;
• Data breach – laptops/data sticks being left on various places, emails sent in error, sensitive documents not being properly shredded, back-up hard drives being lost;
• External hacking attacks, internal negligence, deliberate acts, system glitches etc.;
• Electronic data/software loss and replacement cost following a cyber-attack;
• Electronic media liability – including invasion of privacy, libel or slander, infringement of copyright, title, slogan, trademark or service names including domain names, false advertising etc.;
• Business interruption/increased in cost of working following a cyber-attack;
• Businesses held to ransom before systems are released;
• Cyber-threat from interconnected supply chain business partners/outsourced services providers;
• Internal control and other issues – e.g. non-segregation of sensitive data, inadequate user access control/password protection, outdated POS software applications, absence of up to date antivirus software/firewalls, unencrypted data/information/lack of end-to-end encryption;
• Possible presence of older devices/computer systems with outdated operating systems and unsupported software;
• Inadequate training for employees on data security/privacy/cyber risk. No or inadequate background checks conducted on employees/various service providers/suppliers etc.;
• Compliance and control issues – possible lapses on policies, procedures and protocols on cyber security and related matters (if applicable);
• Cyber threat relating to – Bring your own devices (BYOD), download and install personal, or unauthorised software, use of USB or other media devices etc;
• Extra expenses following a cyber incident including forensic investigation costs, crisis management expenses, notification and monitoring expenses, remediation/other extra expenses;
• Brand and reputational damage following a cyber-attack/data breach;
• Security lapses in company web-sites – cyber threat to own hardware and software; cyber threat to visitors of the website;
• Lack of security measures including a combination of technology (e.g. IT security) and physical security at the premises;

‍

Why use Hunter Broking Group?

Accountants Insurance Broker Brisbane:


Hunter Broking Group can assist with Insurance for Accountants and Tax Advisory Consultants. Through industry specific insurers, your designated advisor has access to a comprehensive range of insurance products that can be tailored to suit most accounting operations and advisory risks. We can arrange insurance for various segments in the accounting industry including:

• Audit/accountancy;
• Taxation;
• Bookkeeping/wage roll;
• Consultancy;
• Introducer commissions earned from third-party arrangers of insurance, financial services and investments;
• Secretarial & share registration;
• Executorship & trusteeship;
• Directorships;
• Insolvencies, liquidations & receivership;
• Mergers, acquisitions, disposals;
• Management consultancy;
• Receivership;
• Pure accounting services;
• Business or share valuation/evaluations;
• Investment advice & commissions; and
• Sharebroking.

Hunter Broking Group pride themselves on having a local presence with a national strength, our technical product experience allows us to manage and service accounting insurance products such as:

• Professional Indemnity Insurance
• Public Liability Insurance
• Office Equipment Insurance
• Office Insurance
• Business Insurance
• Employers Liability (non government states)
• Electronic Breakdown Insurance
• Management Liability Insurance
• Cyber Liability Insurance
• Personal Accident / Illness Insurance
• Tax Audit Insurance
• Increased Cost of Working Insurance
• Business Interruption Insurance
  ‍

Office equipment insurance is a core focus for our advisors, whether we are looking after small computer stations or corporate office equipment, Hunter Broking Group have the experience to provide the appropriate advice for your size and risk exposures.

Our experienced brokers can help you get the most appropriate insurance cover by assessing your specific needs and recommending the best value insurance solution for your business, whilst still maintaining the highest standard of cover.

‍

Information Source

https://www.lmiriskcoach.com/industries/23418/hazard-index
https://www.lmiriskcoach.com/industries/23418/risk-assessment