I am a retired person and an EA who took up tax prep as a post retirement part time employment. I have about 60-70 clients whose returns I do annually. I have never carried E&O insurance and I am considering doing so.
I had the Insurance agent send me a copy of a proposed policy. My cursory reading of the policy seemed to indicate that events resulting in claims under the policy and the the claims themselves had to occur during the policy period or shortly thereafter.
It seems to me that typically a claim would occur more than a year after the actual E&O event. As such, it seems that the policy would have to be kept in force for multiple years in order to provide adequate protection. I am never sure if I will continue to prepare taxes from one year to the next. Maybe I will want a different carrier the following year. This makes me question the value of E&O insurance for me.
Any thoughts?
I had the Insurance agent send me a copy of a proposed policy. My cursory reading of the policy seemed to indicate that events resulting in claims under the policy and the the claims themselves had to occur during the policy period or shortly thereafter.
It seems to me that typically a claim would occur more than a year after the actual E&O event. As such, it seems that the policy would have to be kept in force for multiple years in order to provide adequate protection. I am never sure if I will continue to prepare taxes from one year to the next. Maybe I will want a different carrier the following year. This makes me question the value of E&O insurance for me.
Any thoughts?
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