Lack of E&O Insurance

So I just found out that my employer let his E&O lapse... and never renewed it.

Does this sound like someone you would work for? I'm updating resume after 10/15.

Sounds like job security is a little shaky.

Must be confident in the work product.

Agree with the others, and your assessment. The cost of E&O is generally a bargain for the level of protection that it provides. Dropping it is penny wise and pound foolish.

I had E&O insurance before I had a business license...

I wouldn't have been able to sleep without it.

My E&O is something like 1% of my gross income. Yeah, I'll pay it and would be skeptical of any CPA/business owner that allows it to lapse.

I can't imagine letting my E&O insurance lapse. Doesn't that usually end the existing coverage?

If I were an employee, I would want to know immediately why the E&O was not renewed. Maybe there's a good reason, but I can't think of one right now... seems like you're right in polishing up that resume. Good luck!

I don't know if it's a good reason or not, but I let mine accidentally lapse. The (cheaper) carrier I had never sent me a renewal and I simply forgot about it. As soon as I found out though, I renewed with a different carrier.

Are you signing returns? If not, I wonder if it's that big of a deal. The liability is with the owner/signer in that case, no? Having said that, the job market is so tight right now I'll bet you could find a better situation anyway.

Any chance it was an oversight?

when was the renewal....best if renewals are in slow season so not overlook

any chance he/she signed on with a new carrier?

Curious to how OP found out about his employer's insurance lapsing...

lapse was intentional. After a "scare" last year, he "promised" to get insurance. Came up 2 weeks ago during another "scare" that he never renewed. I asked point blank.

Like Cornerstone mentioned above, E&O is cheap for the level of protection it provides.

Seems like one decent sized suit and you're out of a job...

I don't know if it's a good reason or not, but I let mine accidentally lapse. The (cheaper) carrier I had never sent me a renewal and I simply forgot about it. As soon as I found out though, I renewed with a different carrier.

Just a mistake -- it happens. You corrected the mistake as soon as possible. That's the right thing to do.

lapse was intentional. After a "scare" last year, he "promised" to get insurance. Came up 2 weeks ago during another "scare" that he never renewed. I asked point blank.

RUN AWAY

RUN AWAY

Maybe, get your own individual policy ?

Maybe, get your own individual policy ?

Interesting thought, but I wonder if an employee can get one?

I'm too lazy to actually read my policy, but I think it does not cover preparer penalties, and I wouldn't expect an employee to be able to avoid preparer penalties either. But as for client claims for tax liabilities and taxpayer penalties/interest, wouldn't an employee automatically be off the hook for any of those claims? The engagement after all was between the employer and the client, not the employee and the client.

Say my automobile has a costly breakdown soon after it was maintained and repaired for the same condition -- can I sue the mechanic who worked on my car? Or only the auto repair shop?

RUN AWAY

Maybe, get your own individual policy ?

The reason to run away is not solely based on the lack of insurance. It's the whole fact pattern, as described by Shoebox, and as differentiated by smtcpa's situation.

as time marches on, this fact pattern is "all in a day's work" for him......

Say my automobile has a costly breakdown soon after it was maintained and repaired for the same condition -- can I sue the mechanic who worked on my car? Or only the auto repair shop?

Wouldn't the mechanic's protection be that he followed direction/instruction of his/her employer, and possibly learned how to do the work involved from that same employer?

Also, ABC Garage, LLC probably has more assets and income than Joe Mechanic.

You may be able to name Joe Mechanic in the suit, but does it make sense to?

You may be able to name Joe Mechanic in the suit, but does it make sense to?

We all know lawyers will name everyone possible in a lawsuit to help increase chances of collecting something, whether settlement or insurance or otherwise.