What Does an Insurance Accountant Do?

Accountants' liability insurance covers the economic compensation liability in accordance with the law due to losses caused to others due to violations of their duties and obligations in the accounting business due to the legal liability of the insured or its predecessor or insured. Domestic accountant liability insurance is a newly launched type of insurance, and policyholders may be established in accordance with law. Accounting firm.

Accountant Liability Insurance

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Accountants' liability insurance covers the economic compensation liability in accordance with the law due to losses caused to others due to violations of their duties and obligations in the accounting business due to the legal liability of the insured or its predecessor or insured. Domestic accountant liability insurance is a newly launched type of insurance, and policyholders may be established in accordance with law. Accounting firm.

China's "Certified Public Accountants Law" stipulates that accounting firms that violate the provisions of the "Certified Accountant Law" (such as issuing false audit reports, capital verification reports) and cause losses to clients and other interested parties shall be liable for compensation in accordance with law. Therefore, accountants have professional liability risks, which is the basis for opening accountant liability insurance.

Chinese name

Accountant Liability Insurance

French

The Certified Public Accountants Act

Exclusions1

Intentional or criminal conduct

2

Practice outside audit

According to the provisions of the accountants' liability insurance in China's insurance market, after the start of the specified retrospective period, the certified public accountant of the insured failed to perform his business due to negligent acts in the course of conducting domestic audits of certified public accountants in accordance with the authorization of the insured. Duties and obligations due to direct economic losses of the client and its interested parties, if the client and its interested parties file a claim with the insured within the insurance period, the indemnity shall be borne by the insured according to law, according to The relevant provisions of the clause, the insurer is responsible for compensation within the agreed compensation limit. In the event of an insured event, the insured shall pay the relevant litigation costs and other necessary and reasonable expenses in advance with the written consent of the insurer, and the insurer shall be responsible for compensation within the compensation limit agreed in the insurance contract. ^[1]

Excluded liability for accountants' liability insurance, except for general liability insurance, includes the following: ^[1]

With regard to the participation rights of the insurers, the accountants' liability insurance is basically the same as the medical liability insurance. ^[2]

Accountants' liability insurance is based on claims. The insurer's compensation for each claim is based on the amount that should be paid by the insured as determined by the court or relevant government departments according to law or determined by the parties and the insurer through negotiation. Standards, but shall not exceed the corresponding compensation limits agreed in this insurance policy.

When the insured applies to the insurer for compensation, he shall submit the original insurance policy, legal documents proving the practitioner's liability, a claim report, a list of losses, the certified public accountant's certificate of the practitioner, the entrustment contract with the client and other necessary Documentary evidence of the nature, cause and extent of the loss.

The insurer of the accountant liability insurance has the right of subrogation and the insured has the obligation to assist.

The dispute settlement methods of the accountants' liability insurance include negotiation, arbitration and litigation.