Protection for an audit firm against client claims
Helps protect an audit firm’s financial interests if an audit opinion contains an incorrect conclusion on the financial statements and this causes the client a documented financial loss.
The policy can cover an audit firm’s legal obligation to compensate a client for a documented financial loss when the policy conditions are met.
Protection for the audit firm’s financial interests connected with its obligation to compensate a client for loss.
The risk relates to an incorrect conclusion on the client’s financial statements or other financial information.
The policy considers a documented financial loss suffered by the client because of the insured activity.
The work must be performed by auditors holding valid qualification certificates.
Terms and price are calculated individually
Every claim is assessed based on its circumstances, supporting documents and the individual policy terms.
The demand relates to an audit engagement or related audit service provided to the client under an agreement.
The audit opinion contains an incorrect conclusion that caused the client a documented financial loss.
There is a final court judgment or a voluntary settlement made with the insurer’s prior written consent.
Cover applies to an audit firm’s obligation to compensate a client for a documented financial loss caused by an incorrect conclusion in the audit opinion, subject to the policy terms.
The amount of insurance indemnity is determined by the documented loss, the liability limit, the deductible and the other policy terms.
The firm performs an audit engagement or provides a related audit service to the client under an agreement.
The audit opinion contains an incorrect conclusion on the financial statements or other financial information.
The client seeks compensation for damage and provides documents supporting the cause and amount of the loss.
The insurer reviews the documents and expert materials before deciding whether the event is insured.
The liability limit, deductible, period, territory, types of audit services and process for documenting the loss are set out in the individual insurance documents.
civil liability for a documented financial loss caused by an incorrect conclusion in the audit opinion
audit engagements and related audit services expressly included in the subject of insurance
work performed by auditors holding qualification certificates in compliance with applicable law and standards
a final court judgment or a voluntary settlement made with the insurer’s prior written consent
The exact scope of cover is defined by the policy and insurance contract.
audits initiated by tax, supervisory or law-enforcement authorities, bookkeeping and consulting services
deception, crime, failure to perform work, missed deadlines, or disclosure of confidential information or trade secrets
work without qualification certificates, an insufficient number of qualified auditors, or activity outside the permitted scope
loss or forgery of documents, expired limitation periods, administrative sanctions, the deductible, and contractual liability beyond liability imposed by law
Check the full list of exclusions in the individual policy terms.
To assess the professional risk, our specialist will clarify information about the firm, its auditors, services and requested limit.
The firm’s details, experience and information confirming its inclusion in the Register of Audit Organizations.
Qualification certificates of the employees who perform audit engagements.
Audit engagements and related services, client profile and the specifics of client agreements.
Number of engagements per year, client industries, and the scale and nature of the financial statements reviewed.
The requested liability limit, deductible, policy period, territory and other parameters.
Information about previous demands, court disputes and circumstances that may affect the risk.
Submit a request and provide the basic information about your audit practice. We will clarify the rest together.
Complete the form on this page. A specialist will contact you and clarify your needs.
We will need details about the firm, auditors, services, requested limit and claims history.
We will determine the limit, deductible, period, territory, price and the process for arranging cover.
The product is designed for audit firms that perform audit engagements and provide related audit services to clients. Work within the cover must be performed by auditors holding qualification certificates.
It protects the audit firm’s financial interests connected with its legal obligation to compensate a client for a documented financial loss caused by an incorrect conclusion in the audit opinion.
Under the standard wording reviewed, the insured event is the established obligation of the firm to compensate the client: under a final court judgment or through a voluntary settlement of the claim with the insurer’s prior written consent.
The standard wording connects it with a failure to identify misstatements in the financial statements after confirming their reliability, if this caused the client a financial loss. The circumstances are assessed using documents, applicable standards and expert materials.
The client may be an individual or a legal entity that has entered into an agreement with the audit firm for an audit engagement.
The cover applies to work performed by the firm’s auditors as part of the insured activity. Employees performing the engagements must hold valid auditor qualification certificates.
It does not apply to audits initiated by tax, supervisory or law-enforcement authorities, bookkeeping, or consulting services. The individual list of insured services is specified in the policy.
The standard exclusions include fraud and crime, failure to perform work or missed deadlines, disclosure of confidential information, loss or forgery of documents, activity outside the permitted scope, administrative sanctions, the deductible, and contractual liability beyond liability imposed by law.
The price is calculated individually based on the firm’s experience, auditors’ qualifications, types and volume of services, client industries, requested limit, deductible, period, territory and claims history.
We will need the firm’s details, information about its inclusion in the register, auditors’ qualification certificates, the list of services and clients, practice volume, requested limit and deductible, and claims history.
The insurer should be notified verbally without delay, followed by written notice within three working days and submission of the available materials. Do not admit liability, pay compensation or enter into a settlement without the insurer’s prior written consent.
The standard wording lists the insurance policy, auditors’ certificates, the audit services agreement, the client’s demand, evidence of liability and the amount of loss, reports, expert opinions, records and the court judgment. The insurer may make a decision without the full list.
The review may use an expert assessment of the report and opinion by a professional association, official clarifications and opinions from qualified specialists. If they conflict, liability and the amount of loss are determined in court.
After the event is recognized as insured, the insurance act is prepared within five working days. Payment is made within ten working days from the date the act is signed. A reasoned refusal is communicated no later than fifteen days after the payout request.
Tell us about your audit practice, and a specialist will help prepare individual terms.
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