Given the recent deadline for second-quarter 2012 estimated taxpayments on June 15, your accounting-firm clients have been busierthan usual. With another rush of deadlines, they have probably notbeen thinking about the need to have adequate insurance in place tocover a major setback. But given current economic conditions andincreasingly unpredictable weather, small businesses have too muchat stake to risk being underinsured.

Whether you have existing accounting-firm clients or want toexpand into this market, it’s important to remember that in atime-sensitive business like accounting, disruptions can be costlyand damaging to client relationships. From a fire or naturaldisaster to a disgruntled client or a physical injury that leads toa lawsuit, your clients need to be prepared.

By talking to clients and prospects about these exposures andissues, agents and brokers strengthen their role as trustedadvisors and ensure their clients have the right risk managementand insurance products in place.

Here are seven essential coverage areas to highlight forthem:

1. Commercial Multiperil: Any comprehensiveinsurance program has at its foundation a Commercial Multiperil(CMP) policy. The policy and any endorsements should carry adequatelimits for all essential coverage, such as Property, BusinessIncome replacement and Liability. Be sure to advise your clients toseek out and choose a financially strong and stable insurer.

2. Property: Any business can be affected byfire, natural disasters or other destructive events. One way tomake sure your clients know what’s at stake is to do an officeinventory with them. Discuss the cost, for example, to replacedesks, chairs, computers and other items that are used on a dailybasis. Valuations need be up-to-date and the full replacement costassessed. It’s not uncommon to undervalue essential equipment aswell as the cost to rebuild.

3. Liability: No professional executesflawlessly every day and with every client. Professional errors oraccusations of errors can have devastating effects on thereputation, focus and finances of an accounting operation.Professional Liability coverage is often the difference between thefirms that clear the hurdle of a Professional Liability claim orlawsuit and those that do not.

4. Network and Information Security OffenseCoverage: Many professionals, particularly those in smallbusinesses, mistakenly believe that cyber-attacks are directed atlarge businesses and they won’t be affected. In fact, smallbusinesses are increasingly under attack by cybercriminals, andthey face serious and costly legal issues relating to privacy anddata breaches. In accounting businesses in particular, the clientinformation on hand is extremely valuable to a hacker.

If a lawsuit does result for any reason, it’s critical to haveLiability insurance that will transfer to the insurer the burden ofinvestigating and defending the suit and/or negotiating asettlement.

5. Replacement Income Coverage: While mostpeople would expect accounting firms to keep impeccable records fortheir own businesses, it’s not always the case. Agents and brokerscan help accountants understand that Replacement Income coverage isbased on documented information. How much would it cost, forexample, to keep the business running if income was disrupted? Foraccounting businesses with their ebbs and flows, a disruption at abusy time could be disastrous if there’s no insurance in place.

6. Business Continuity Plan: Many firms don’tunderstand the need for a business-continuity plan if a substantialloss or disruption occurs. But having a plan in place coupled withgood insurance could mean the difference between surviving andshutting down. Accountants need to have a way to quickly access andrestore client and other records.

7. Workers’ Compensation: Most states requireaccounting firms with one or more employees to purchase Workers’Comp insurance. This insurance provides workers with wage andmedical-expense protection when injured on the job. Employees,including those with nonphysical roles like a bookkeeper oraccountant, do sustain work-related injuries.