Suggestion for E&O Insurance for tax preparer In CA, bay are

I am so thankful that I don’t have to worry about that. My company has the Insurance. And fortunately, we never use it to cover. We did make mistakes sometimes but it is resolved finally.

I have some CPA friends operating their own CPA firms. It is basically a small business with one or two seasonal employees. Recently, some received huge penalty from IRS or Oregon Revenue Department. You know if file form 5472 late, the penalty is $25,000 per filing.
Oregon payroll form late file penalty is huge too. My friend received five digits penalty bill from Oregon due to not filing W-2 to State for 4 years. He does not know he needs to file separately w-2 to Oregon! He called the government and tried to get a first time abatement.
However, Revenue department of Oregon said it happened long time ago, and the agent had send tons of letter to the company address in Oregon, and no response was received, and so there is no reasonable cause to be waive, etc.
The CPA said, no, no, no, no letter was received by CPA firm in California prior to the last one forward by the company.
The company in Oregon said, I forward all the mail received to CPA firm.
The story keeps on going. He was wondering if he would get any relief finally. Is it covered by E&O insurance if he had one?

Anyone have any suggestion for a E&O insurance for small CPA firm? I know it won’t cover his previous mistake, but in the future, he may be covered by those kind of mistakes.

Thank you,

I use AON through the AICPA. It's cost effective and the limits help me sleep at night.

Haven't had to make a claim yet so I can't speak to that part of the process...knock on wood.

Same, AON through AICPA (and my life insurances and umbrella). They seem to be very reasonable when it comes to claims; I filed one claim from suspicion that something could arise, and though nothing occurred from it, they handled it appropriately and promptly. Reasonable rates compared to other providers.

I know some solo CPAs that operate without E&O. It would keep me awake at night if I did not have it with our industry and how litigious society is, overall.