Covers liability and legal-defence costs where a CPA or tax adviser, through negligence in audit, tax advice, bookkeeping, filing or financial advisory, causes loss to a client. Recommended as professional liability under the Certified Public Accountant Act and the Certified Tax Accountant Act.
N2N Insurance Brokerage does not represent any single insurer — it independently represents the client as an FSS-registered broker (Reg. No. 2026-012201). We compare the wordings, rates and service of AIG · Chubb · DB · Hyundai · KB · Meritz to propose the cover and price best suited to your risk. Each insurer's full wording is provided at application and binding.
Under Article 27 of the Certified Public Accountant Act and Article 16-2 of the Certified Tax Accountant Act, accountants and tax advisers are liable for loss caused to a client. This cover responds to professional-liability claims from negligence — deficient audits, tax-advice errors, filing omissions, penalty taxes and the like.
Big Four, mid-size and small.
Sole and joint practices.
On an individual basis.
Audit firms.
| Employer's liability | Employment incidents |
|---|---|
| Confidentiality | Disclosure of client information |
| SOX extension | Audits of US-listed-company subsidiaries |
| Policy period | 1 year (Claims-Made) |
|---|---|
| Insurers | Chubb · Hyundai |
| Limits | KRW 500m–5bn per claim / KRW 1bn–20bn aggregate |
| Turnaround | 2–4 weeks |
Void if the insured event had already occurred at contract. A handwritten signature is required. A commercial contract concluded by a professional financial consumer cannot be withdrawn.
N2N Insurance Brokerage is a registered insurance broker under Article 89 of the Insurance Business Act (No. 2026-012201 · Business Reg. No. 611-23-02374).
Common risk patterns in professional practice — a five-scenario self-check
If audit negligence fails to detect accounting fraud, the firm can incur liability to clients and stakeholders.
If a filing omission or error causes the client loss such as penalty taxes, professional liability follows.
High-complexity work such as financial due diligence and M&A advisory can involve large compensation if the advice is negligent.
As the number of professionals grows, workload and claims exposure grow together. Firm-level liability-risk management is needed.
Listed-company audits and foreign-firm work have many stakeholders, so the chance of claims and the scale of loss are large.
The most-misunderstood point is that cover turns not on “when the negligence occurred” but on “when the claim was made.” This cover is generally claims-made: it responds only if a damages claim is received from a client during the policy period. A claim from past audit or filing work can be covered if raised during the policy period, but a claim or circumstance already known before inception is excluded. Maintaining cover without interruption, and accurately disclosing any known dispute at inception, are the keys to cover.
Source: (standard insurance-textbook scenario)
The wording and structure points decision-makers most often overlook
This cover is generally claims-made, covering claims raised during the policy period. Stopping cover can leave claims from past work in a gap.
A dispute or claim already recognised before inception is not covered. Accurately disclosing what you know at inception is the way to reduce disputes.
Negligence in “professional work” such as audit and tax advice is covered; the firm's own business disputes — leases, employment — are separate. Where needed, supplement with D&O or commercial liability.
The questions asked most when considering accountant & tax-adviser professional liability insurance
Article 27 of the Certified Public Accountant Act and Article 16-2 of the Certified Tax Accountant Act set out liability for loss caused to a client through professional negligence. The basis for cover can differ by firm and work type, so check against the relevant law.
Loss caused to a client by negligence in performing duties — deficient audits, penalty taxes from filing omissions or errors, bookkeeping negligence, financial- and M&A-advisory negligence — is covered.
This cover is generally claims-made. A claim from past work can be covered if raised during the policy period, but a claim already known before inception is excluded.
Because cover is claims-made, stopping it can leave claims from past work in a gap. It is important to keep professional liability cover without interruption.
No. Loss from wilful acts, crime or fraud is excluded. This cover responds to professional liability arising from “negligence.”
The insurer calculates it based on firm size, number of professionals, revenue, the type and risk of work (listed-company audits, M&A advisory, etc.), the limit and past claims history. The exact premium and terms are confirmed after underwriting by insurers such as AIG, Chubb, DB, Hyundai, KB and Meritz.
