Discussion:How many of you have insurance

Check out CAMICO or Aon (the AICPA's plan). Both are good carriers. I think Aon is somewhat cheaper.

Check out NAPLIA. Every couple of years I get quotes from several plans, and these guys broker comprehensive coverage from solid companies at a fair price. I obtained a quote from CAMICO recently - they were 3 x as expensive.

I have malpractice insurance of only $100K, liability insurance on my office space is required by lease of $1 million. Malpractice ins costs about $1,000 annually with a 5K deductible.

I would never practice without it. You never know what can happen. I have NEVER been sued but just last month I was threatened by a buyer of one of my clients businesses. He failed as the new owner because he was under capitalized and ran the business as an absentee. He called me and said the financials were not accurate.

They happen to agree to the tax return and are VERY accurate.

Yet if he sues the seller, it costs NOTHING to add the accountant as a defendant even though I have no real liability.

On one hand, I feel that having insurance makes me more likely to be sued. With a million dollars of insurance, it is worth hiring a lawyer to track me down and beat me like a dead horse. Without insurance, I have limited assets to go after. I try to keep my attachable assets below the level at which a lawyer would salivate. If there is no money to be made, it will be hard to find an attorney to take the case.

On the other hand, for a couple thousand dollars a year, I can be insured and allow my wife to sleep easier at night.

I'm currently insured but my policy is up for renewal in July. Check back then to see which way the wind is blowing.

I think in most states professionals are not sheltered by any type of entity if they are sued for negligence. In other words, just because a tax preparer is operating out of a corporation, that does not mean that personal assets will not be taken if negligence is proved.

People sue for anything and everything these days. I am just not willing to take any chances in that arena. In addition to the coverage that is afforded under a policy, the insurance company will also provide the attorneys, etc. It's one less thing to worry about if that day ever comes.

JR, what you are doing is risk management. I have had the same carrier since day one. I tried to switch the second or third year, but too much of my revenue came from one client, and the potential carrier would not even give me a quote.

Some agent tried to sell me an Umbrella Policy, but what to I need to insure my umbrella for? Just buy a new one if it get's stolen.

As far as malpractice, if that's what you mean, I use a Swim at Your Own Risk Policy. It's my policy to ask the client to sign a statement that they use me at their own risk. This seems to work pretty well, never have had one turn me down yet.

can't wait to check out aicpa policy since i just got licensed.

$250k each incident / $250k aggregate for $505 premium annually $500k each incident / $500k aggregate for $647 premium annually $1MM each incident / $1MM aggregate for $788 premium annually $1MM each incident / $2MM aggregate for $988 premium annually

he quoted higher levels but that's $500k is about as far as I would go. Whatever helps you sleep at night I guess.

If you don't have a lot to protect that you don't need a large policy. Also take into account future earnings.

I guess another consideration regarding umbrella coverage is that it is there when you want to be able to provide for someone who has an accident. Let's say I have a client come over and he or she slips on the steps and breaks some bones. I'm sure the medical bills and loss of wages would add up fast. With an insurance policy, that's all taken care of.