Accounting firm and CPA insurance in North Carolina

What insurance does a NC accounting firm or CPA need?

Core coverages include: professional liability (errors and omissions, covering claims from accounting, tax, and audit services); cyber liability (covering data breaches and the financial data the firm holds); commercial property; GL; and workers comp for employees. NC CPA licensure requirements apply to firms providing attest services.

What does CPA professional liability cover in NC?

CPA professional liability (E&O) covers claims arising from accounting services, tax return errors causing IRS penalties, financial statement errors, audit failures, bookkeeping errors, and other professional mistakes. It covers defense costs and settlements. Claims in this area can involve significant damages tied to the financial impact on clients.

What cyber liability do NC accounting firms need?

Accounting firms maintain highly sensitive client financial data, tax returns, financial statements, payroll records, and banking information. This makes them attractive targets for cybercriminals. Cyber liability covers breach response, client notification, ransomware recovery costs, and regulatory defense. Wire transfer fraud (social engineering) is a particularly important coverage for accounting firms handling client funds.

Does NC require malpractice insurance for CPAs?

NC CPA licensure through the NC State Board of CPA Examiners has specific requirements. Firms performing attest services have insurance requirements. Verify current requirements with the Board. Many firms carry E&O regardless of the technical licensing requirement because client contracts and professional standards effectively require it.