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Today's accounting professional or firm is faced with tremendous competitive pressures, in an ever-changing business environment.  While most of the headline grabbing has been in the realm of the large, international firms, the fact remains that the vast majority of businesses in the U.S. rely upon the services of either a solo practitioner, or a small to midsize accounting firm.

With this dramatic change comes an increasing number of legal and ethical questions and potential pitfalls.  Industries change; "paradigms shift".

As an example, here in New York, the garment industry has been one of the stalwart industries for decades.  The west side of Manhattan, below 42nd Street and down to about 28th Street has historically been referred to as the "Garment District".  Many real estate brokers are now referring to the garment district as "Times Square South".

The fact is that a huge percentage of the actual garment manufacturing industry has moved out of New York City, either to other states, or often to other countries, where labor is cheaper.  I'm not going to get into any sociopolitical discussion of this trend; I'm only stating this as a fact.

What's left in today's garment district is showrooms and offices, with some smaller manufacturing operations scattered here and there.

Just to the north of the garment district lies Times Square and the theater district.  Until just a few short years ago, this area was best known for three things: 1) the dropping of the ball on New Year's Eve, 2) Broadway theaters, and 3) sleaze, sex, drugs & prostitution.

Now, Times Square is undergoing dramatic changes, with new construction, renovation, rejuvenation.  Who would have thought that theaters that were showing "Beach Blanket Bimbos" (or worse?) in the 70's and 80's would be home to such wholesome family entertainment as the stage productions of Disney's "The Lion King" or of "Ragtime".  Again, no sociopolitical discussions here - that's for a whole 'nother Web Site!

"What does this have to do with the Accounting Industry?", you ask?  Plenty!

Along with the garment industry there co-existed a thriving accounting industry.  Many small to midsize accounting firms did little else besides the garment industry.

Now, due to a convergence of political, economic and technological forces, many of these firms are finding themselves scrambling to adapt to a changing world.  The garment industry, while thriving, is doing so in a far, far different way - and often in a far, far different country.  On the other hand, the technology industry, the entertainment industry, the real estate & legal industries are booming!  It's what a high school teacher of mine used to refer to as, "a microcosm of a macrocosm."  Throughout our country, the economy is shifting from the manufacturing base of the past 100 years, to the service/technology base of the next 100 years.

OK, OK . . . Enough of the history lesson, Professor Swicker - let's get to the point!

My point is, today's accounting professionals and firms must adapt.  Some are merging; others are expanding, often by adding various "consultancies" - technology, computers, software consultants; management consultants; even legal services in some cases.

Yet, even as the accounting industry evolves, controversy swirls around these new expanded services.  The chairman of the SEC has made it very clear that he does not believe that the ethical requirements of the accounting industry can mix with those of law or consulting.

The frequency and severity of malpractice claims against accounting professionals has risen dramatically over the past 10 to 15 years; sometimes driven by these very changes. 

Some view the S&L crisis of the early-to-mid 80's as the watershed of today's professional liability climate for the accounting industry.  As part of the effort to clean up hundreds of failed financial institutions, the Resolution Trust Company - as well as thousands of individuals - forged new case law; expanding the potential liability of both accountants and attorneys.  A potent legal weapon is used with increasing frequency - that of the Class Action Lawsuit.  Regardless of whether or not you believe this to be fair, it is a reality in today's business arena.

Even a solo practitioner, or a small to midsize firm which might handle only compilation, review or non-audit services - or even just tax issues for businesses or individuals is faced with a significant risk of a malpractice claim. 

According to one major malpractice insurer, tax engagements alone accounted for over 50% of all claims during the years 1993-96!  The fact is that even if you have done nothing wrong, you can still find yourself facing a claim for malpractice.  Are you prepared to arrange for defense?  Would you know who to call in order to find an attorney who specializes in defending accountants in professional liability actions?  

Once you find an attorney, are you prepared to pay his or her retainer - maybe amounting to $10,000 or more - just to open the file?  Remember, defense counsel is paid, regardless of the circumstances, and regardless of the outcome.  Are you prepared to deal with the many otherwise billable hours you must now devote to your defense?

Today's prudent accounting professional, whether a solo or a small or midsize firm, knows the value in a properly underwritten policy of professional liability insurance.  

And where does one find such a policy?  

Gee . . . I thought you'd never ask!  More and more professionals of all types are turning to an experienced,  knowledgeable, independent insurance professional.  After all, when you deal only with an association-endorsed  "program" for your coverage, the "program administrator" is committed to selling you only that one insurance carrier's product, which obviously limits his or her objectivity - not to mention your options!   

While it is true that some programs offer good, reliable coverage, they are generally "slot underwritten"; meaning there is only very limited flexibility for customizing the coverage terms - and the pricing - to match the practice profile of each individual firm or professional.

As an independent insurance broker, my highest priority is to represent YOU, my client, in order to find the most appropriate coverage terms, at the most competitive premium.  We have direct access to many different insurance companies; all "A" rated or better; all aggressively seeking to write professional liability coverage for virtually any type of accounting professional. 

If your practice is low-risk, you will be underwritten accordingly.  If, on the other hand, you enjoy the added challenge that comes with higher liability assignments, such as IPO's, financial institutions, or auditing publicly held companies, well, I know which carriers are most comfortable with this level of risk-profile, and therefore where to obtain the broadest possible coverage at the best possible price.

Maybe you are opening your own practice for the first time, or you've simply never had professional liability insurance before - we know the market.  Even if you, or your firm, has had your professional liability insurance cancelled or non-renewed due to claims experience, ethics violations, or any other adverse situation, we can help!

Give me a call at, 877-320-4061, to discuss you particular situation.  My phone system will attempt to locate me, 24-hours a day, and if I am available we will be connected.  If I can't take your call at that moment, you will have the opportunity to leave a private voicemail message. 

All inquiries are held in the strictest confidence, and there is absolutely no charge or obligation for a review. 

You can click here and fill out a quick and easy form which will be transmitted to me instantly, or you may also send me an e-mail at, info@swicker.com. I read my e-mail daily, and I do my best to respond within 24-48 hours.

Time and time again, I have heard otherwise astute professionals tell me, "I know I have the best deal on insurance - my agent told me so!"  (Now, there's an objective opinion!)  In many of those instances, I have found ways to improve the coverage terms, lower the premiums - and sometimes do both!  Remember, if it turns out that you really DO already have the best possible coverage, I'll tell you so - and hopefully we can talk again, next year.

I look forward to speaking with you soon.

Bruce R. Swicker