Munich Re Specialty Insurance Introduces Excess Accountants Professional Liability Solution

NEW YORK (November 27, 2023) – Munich Re Specialty Insurance (MRSI) has launched an excess Accountants Professional Liability (APL) solution to help protect accounting businesses from the unique risks in the financial services industry.

Today’s accounting firms face myriad professional liability risk exposures – and, as accounting practices expand the range of services they provide to clients, the need for protection grows. According to CPA Practice Advisor, the Top 100 U.S. CPA firms have claims alleged against them at “an alarming rate, despite having world-class resources for client selection, tax adherence, auditing standards, fraud detection, and in house general counsel to defend them.”

“MRSI offers excess professional liability coverage that addresses the critical risks and needs of accounting practices, especially at a time when the profession is seeing increased claims frequency and severity,” said Marcia Blanco, Head of Financial Lines, Excess & Surplus Underwriting, Munich Re Specialty Insurance. “Client firms will benefit from our customized solutions, underwriting expertise and an unmatched level of service through our select and appointed broker network.”

For a wide range of accounting businesses – from CPA firms and sole practitioners to auditors and payroll services – professional liability insurance is an important option to consider. As reported in Accounting Today, accounting firms are dealing with various challenges – among them, changing regulatory standards and tax laws, new and growing client demands, staffing shortages and the need to keep up with changing technology.

MRSI’s excess APL solution provides uniquely comprehensive coverage, including up to $5 million in limits and a wide range of exposures, for various claims scenarios, including:

• Negligent tax preparation – includes conduct such as failing to file a client’s return in a timely manner, failing to list important information on the return, and failing to make a timely/accurate response when tax authorities make inquiries.
• Negligent advice – a broader version of accounting malpractice; examples include giving incorrect tax advice or information to business owners and failing to provide accurate financial statements.
• Damage caused by abuse of authority when an accounting professional is acting as a trustee or chief financial officer.
• Misrepresentation in the practice of public accountancy.
• Failing to perform services in accordance with professional standards – includes giving incorrect tax advice or making tax return errors; manipulating financial statements or providing incorrect reports to stockholders or partners; wrongful certification or failure to properly audit financial statements.

APL claims are managed by a dedicated Munich Re claims team that understands the complexities and nuances that accompany these types of lawsuits. Coverage is underwritten by MRSI’s A+ rated carrier and is offered on a non-admitted basis for excess protection.

About Munich Re Specialty Insurance 

Munich Re Specialty Insurance (MRSI) is a description for the insurance business operations of affiliated companies in the Munich Re Group that share a common directive to offer and deliver specialty property and casualty insurance products and services in North America. Munich Re Specialty Insurance offers its clients innovative risk and claims solutions powered by advanced technology and analytics, superior service and enhanced responsiveness to clients’ needs.

About Munich Re

Munich Re is one of the world’s leading providers of reinsurance, primary insurance and insurance-related risk solutions. The Group consists of the reinsurance and ERGO business segments, as well as the asset manager MEAG. Munich Re is globally active and operates in all lines of the insurance business. Since it was founded in 1880, Munich Re has been known for its unrivalled risk-related expertise and its sound financial position. It offers customers financial protection when faced with exceptional levels of damage – from the 1906 San Francisco earthquake to Hurricane Ian in 2022. Munich Re possesses outstanding innovative strength, which enables it to also provide coverage for extraordinary risks such as rocket launches, renewable energies or cyber risks. The Group is playing a key role in driving forward the digital transformation of the insurance industry, and in doing so has further expanded its ability to assess risks and the range of services that it offers. Its tailor-made solutions and close proximity to its customers make Munich Re one of the world’s most sought-after risk partners for businesses, institutions, and private individuals.