Posted on: February 23, 2026 by Huntersure
It’s late March. A certified public accountant (CPA) finalizes returns, when a frustrated client calls about an unexpected tax bill. The numbers may be correct, yet the client feels blindsided. In moments like this, accountants professional liability insurance becomes the safeguard when dissatisfaction turns into allegations.
Tax season brings tight deadlines, incomplete records, and constant regulatory pressure. Most claims do not arise from incompetence. Instead, they grow from heavy workloads, missing documentation, or unmet expectations.
So, here’s the practical question for agents: What liability coverage do CPAs need most during tax season?
Tax season condenses months of advisory and compliance work into just a few intense weeks. CPAs rely heavily on financial data that clients submit late, incomplete, or inaccurate. Meanwhile, regulatory guidance continues to shift, adding more complexity to each filing.
Under these conditions, small issues can escalate quickly. Allegations may involve missed deductions, late filings, or advice that produced an unfavorable result. Even when returns meet professional standards, clients may still claim negligence.
Volume also increases exposure. In 2025, the IRS processed more than 165 million individual returns and issued over 100 million refunds. When refunds are delayed or smaller than expected, frustrated taxpayers often look to their CPA for answers.
As a result, even well-managed firms face higher claim frequency during filing season. This reality makes professional liability policy structure just as important as professional competence.
Many CPA policies appear strong until a claim tests the wording. Limits may not match the firm’s revenue, client profile, or advisory scope. Additionally, professional services definitions may be narrower than the firm’s real activities.
Advisory services often create blind spots. Business planning, valuation support, transaction consulting, and outsourced financial services may fall outside standard definitions unless specifically addressed.
Prior acts coverage also requires careful review. Because accountants professional liability policies are typically claims made, uninterrupted coverage and accurate retroactive dates are critical. A lapse or prior knowledge issue can materially affect protection.
For that reason, agents should review policies before tax season accelerates, not after a dispute arises.
First, the policy should contain a broad and precise professional services definition. That language must accurately reflect tax preparation, audit, advisory, and consulting services.
Second, agents should examine how defense costs apply. Many policies include defense expenses within limits, which reduces available indemnity protection. In high-severity disputes, that structure can impact remaining protection.
Third, continuous prior acts coverage is essential. Many tax-related claims reference advice provided years earlier.
Finally, the policy should respond to alleged negligent acts, errors, or omissions, even when disputes center on professional judgment rather than calculation mistakes.
Not every CPA firm carries the same exposure. A small local practice faces different risks than a multi-office firm serving corporate clients.
Therefore, limits, retentions, and policy structure should reflect revenue, service mix, and client profile. Larger firms may require layered limits and broader protection. Smaller firms may prioritize affordability while maintaining strong safeguards.
Huntersure offers exclusive accountants professional liability programs through highly rated domestic carriers. With programs for firms of all sizes and stand-alone prior acts coverage, agents can align protection with real operational risk instead of generic forms.
Most tax season claims follow predictable patterns tied to workload and expectations. Proper planning reduces the financial impact when disputes arise.
Agents should review limits, retroactive dates, defense structures, and service definitions before deadlines approach. A proactive conversation today strengthens protection tomorrow.
Tax season will always bring pressure. However, a properly structured accountants professional liability policy helps ensure that pressure does not become a financial setback.
Partner with Huntersure to reinforce coverage before filing season reaches its peak. Contact us.
Huntersure LLC is a full-service Managing General Agency that has provided insurance program administration for professional liability products to our partners across the United States since 2007. We specialize in providing insurance solutions for businesses of all sizes. Our program features can cover small firms (grossing $2.5 million annually) to large corporations (grossing $25 million annually or more). We make doing business with us easy with our breadth and depth of knowledge of E&O insurance, our proprietary underwriting system that allows for responsive quoting, binding, and policy issuance and tailored products to meet the needs of your insureds. Give us a call at (855) 585-6255 to learn more.
Posted in: Accountant Professional Liability Accountants
