In today’s insurance world, there are plenty of new audit-focused policies, procedures and auditing standards. In an effort to keep pace with these changes and ensure auditors have access to the information they need, many insurance companies are offering dedicated audit insurance policies. What is Audit Insurance? Audit insurance is a specialized type of insurance that covers an insurance company’s exposure to an audit. It may be available at the company level or through an agent who specializes in this type of coverage.
An audit can trigger several different types of insurance coverage. A company may want to cover its audit-specific liabilities, such as professional indemnity and legal expenses, or it may want to cover its exposure to a particular audit firm.
What is a Specialized Auditor?
A specialized auditor is an insurance company’s claim against a particular auditor that would trigger an audit. When it comes to auditing insurance policies, there are three types of specialized audits: a) A new audit is conducted by the same auditor that previously audited the company. b) The company has been audited more than once in the last three years and one or more of those audits was conducted by a different auditor than the current one conducting the audit. c) An audit was previously conducted by a firm, but the parameters for or scope of that audit have changed since then.
The third type is where it gets tricky.Then, just six months later, they conduct another audit in France and this time their client wants to use a French law firm for representation. In this case, such as with any policy or procedure change, you might want to make sure your insurance covers this situation because things could get complicated quickly.
Types of Coverage for Specialized Auditors
Audit-specific liability Professional indemnity Legal expenses A company may also want to cover its exposure to a particular audit firm. Many insurance providers offer dedicated coverage for specialized auditors, so companies should evaluate the available options before deciding which type of coverage is best for their needs.
How to Find Audit Insurance for Your Company?
If an insurance company offers audit insurance, it should make it easy for you to find out more information about the policy. If you contact the insurance company, they should be able to provide you with a copy of their policy or a list of companies that are currently insured by their policy.
Another option is to ask your agent. They may have access to information about other companies insured by their agency or they may know of specific insurers that offer this type of coverage at the company level. Your agent should also be able to provide more details about your specific needs and make recommendations accordingly. The benefits of digital marketing are many, but one that stands out is the ability to target your audience better than traditional methods. You can also save money on clicks that don’t convert into sales.
Conclusion
There are significant tax benefits to retaining an auditor, so it’s worth it to talk to your accountant and find out what they think. But it’s important to know the difference between the different types of Audit Insurance that you might be considering and what each type of insurance is designed for. The process of learning about the different types of insurance and deciding which option is best for your company can be time-consuming, but it’s well worth it.
