Policyholders often don’t know what their commercial insurance policy covers or the nature of the coverage.
Typically the policyholder has the responsibility to quantify, document and present a claim to the insurance adjuster. The insurance adjuster then verifies coverage and examines the presented claim. Coverage may include the cost of professional fees such as accounting fees. If accounting fees are included within the coverage of the insurance policy, the accounting consultant would be engaged by the policyholder, but reimbursed by the insurance company if the work performed matches the coverage of the insurance policy.
The wording of the coverage of accounting fees varies within an insurance policy. Below are a few examples of how an insurance policy may refer to coverage of accounting fees:
• Reasonable fees payable to the insured’s accountant
• Insuring Investigative Expenses
• Claim Expenses
It is important for a business to understand exactly what is covered by their commercial insurance policy such as accounting and other professional fees as these fees could be the determining factor if a claim will be filed or not. Knowing the coverage of the business commercial insurance policy can make the decision of filing a claim much easier.