Documentation, Engagement Letters Key to Tax Risk Management

CPA liability exposures during tax season are always a concern, regardless of economic or professional conditions. CAMICO’s claims experience shows that many high-exposure tax claims have certain characteristics in common, primarily as follows:

  • The services for which the client had engaged the CPA were unclear.
  • The CPA had not clarified his or her role or the client’s expectations, usually because an understanding between the CPA and the client had not been reached or adequately documented.

Business Liability-Property and Workers’ Compensation

CPAs face many risk exposures that stem from a variety of business areas and may cause major coverage gaps. Two such areas, sometimes overlooked, are business liability/property and workers’ compensation. Consider the following scenarios and solutions:

Business Liability


Problem – Your firm hosts a reception where alcohol is served, and a tipsy client trips and breaks his wrist. He sues your firm for medical expenses, loss of income, pain and suffering.

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