You need someone you can count for coverage in instances of E&O or staffing risks. Companies that provide accountant professional liability insurance can be vetted generally based on their ratings with various independent agencies. Here is a brief overview, but it’s best to work with an agent to fully understand the ratings.

For someone without a financial systems mindset and significant training in economics navigate me all the terminology surrounding contingency funds and voluntary reserves can be confusing enough without having two decode acronym and calculate liabilities. This is why there are ratings organizations like the AM Best Company, Moody’s and Fitch.

The AM Best ratings in particular are good indicator of financial health, and therefore a gauge of how reliable an entity will be as an insurance underwriter. The system ranks based on two factors. The first is a multi-factor quantitative and qualitative grade represented by a letter from A++ to E. Most insurers are A- rank or above. The second is a financial size rank, denoted in the roman numerals I to XV, representing anywhere from one million to two billion dollars.

Since accounting records stay around for a while and liability persists as well, it’s important to have confidence that your accountant professional liability coverage will last, too. Work with your insurance agent to understand the ratings of their underwriters and what those measurements mean, especially in times of economic uncertainty.