As a smaller firm, how much of your capital assets can you afford to lose on this gamble? If you get sued, attorney’s fees and expenses could cost you $100,000 + just to get you dismissed from a frivolous lawsuit. These costs will come out of your own pockets if you don’t carry professional liability insurance. In just a few days, you could incur far greater financial losses than the relatively low cost of your professional liability premium. A disgruntled or determined client, and a savvy attorney will make you just as much of a target for a lawsuit even if you don’t carry professional liability insurance.

You should know that considerable time and effort has been invested by law firms and expert witnesses in pursuing accountants for malpractice. Type “accounting malpractice attorney” or “accounting malpractice support” into an internet search engine and you will see page after page of hits. Also be aware: The American Bar Association now has an accredited body that certifies specialists for suing accountants for malpractice. Many law firms even provide financing for their clients in order to facilitate filing a claim. It’s easier than ever for clients and other third parties to make a demand against you and pursue it.