Like most small business insurance policies, an accountant’s insurance policy is typically valid for one year before you receive a notice from your broker or insurance provider that it’s due for renewal.

The renewal notice you receive (usually by email) should arrive in your inbox a minimum of 30 days before your policy expires. It provides the perfect opportunity to revisit your coverage and see if you can get a better rate.

It’s wise to take time to think about what level of protection your accountancy or you as an independent accountant need. Don’t make the mistake of renewing an existing policy without shopping around. You may be able to increase your coverage at the same rate or get a lower annual premium.

An accountant thinking about insurance

4 Things Accountants Should Do Before Renewing Professional Liability Insurance

Accountants know they need professional liability insurance. Also called errors and omissions (E&O) insurance, professional liability protects accounting professionals against claims or lawsuits alleging financial loss due to a service you provided, negligence, misconduct, or failure to deliver services as promised. You can add other coverages for a more comprehensive accountant insurance policy.

Here are four things every accountant should do when their policy comes up for renewal:

1. Report changes in your business

Nothing stays the same in our professional journeys. Examine what’s changed at your firm or what new services you provide. For example, if you launched a new service or line of practice, merged with another firm, hired more employees, or invested in new technologies or equipment, all of it should be addressed by your policy. 

Furthermore, if you’re aware of future business or investment plan changes, share that information with your insurance broker, so they know and will ensure your policy accounts for those changes.

2. Review your policy, deductibles, and coverage limits

Thoroughly review your existing policy, the deductibles within it, as well as your overall coverage limit. Your insurance serves as the foundation of risk management, which makes reviewing your policy and its details vital to ensure you have all the necessary coverage you need, and be certain that any new risk exposures your firm faces are accounted for in your new or renewed policy. Also, if you have unreported claims, file a claim before your existing policy expires to prevent complications later.

3. Prioritize coverage over cost

The economic headwinds Canada is facing are expected to continue for many months. Accountancies and independent professionals must watch their bottom lines and look for cost savings wherever they can be found. However, your insurance policy is one investment you shouldn’t downgrade to save a few bucks. 

Being underinsured isn’t worth the risk. Moreover, considering frequent compliance-related changes or issues pertaining to things like your customers’ data security or Canada Revenue Agency reporting requirements, it’s wise to err on the side of caution and not reduce your protection.

4. Speak to a licensed broker

Have a conversation with a Zensurance licensed broker about your coverage requirements and concerns. Our insurance experts can help review your existing coverage, examine what’s changed for your business in the past year, and make recommendations to help ensure you’ve got the liability protection you need.

Looking for Professional Liability Options? Here’s How to Get Value for Money

Get the adequate professional liability protection you need at a favourable price by filling out an online application for a free quote from Zensurance, and take advantage of Canada’s largest small business insurance provider network. 

With more than 50 providers in our partner network, our friendly broker team will take the hassle of renewing or buying a new policy for you by doing the shopping for you.

– Reviewed by Justin Tisdale, Team Lead, Professional Lines, Zensurance.

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About the Author: Liam Lahey

Liam is the Content Marketing Manager at Zensurance. A writer and editor for more than 20 years, he has been published in several newspapers and magazines, including Yahoo! Canada Finance, Metroland Media, IT World Canada and others.