With the implementation of the Corporate Transparency Act (CTA), accounting firms may find themselves in a new area of service: helping clients comply with beneficial ownership reporting. As firms step into this space, it’s crucial to understand the extent of liability coverage.
CNA, a leading provider of professional liability insurance, generally covers these services under their professional policies. However, accountants need to be aware of potential exclusions. For instance, any engagement that veers into unauthorized legal practice or involves fraudulent actions could trigger coverage limitations. As a safeguard, it’s essential for firms to clearly define the scope of their services, avoid stepping into legal advice territory, and stay updated on the latest CTA developments.
While the professional liability coverage applies to most related services, the specifics of each situation will ultimately determine whether a claim is covered. Firms are encouraged to consult legal experts to ensure compliance with both insurance requirements and CTA regulations.
To learn more about these considerations, read the full article here.
For additional guidance on beneficial ownership reporting, visit SCACPA’s BOI Hub for resources and updates at scacpa.org/boi.
This article was generated using AI technology based on previously published content. The SCACPA team has reviewed and verified this article for accuracy, quality, and relevance.
