Accountant Baker Tilly Virchow Krause L.L.P. has received a $50M professional liability verdict against the firm. Baker Tilley found a defect in an audit but waited a year to disclose the issue to the client, the client (Aqua Finance) alleged that the abrupt resination of their auditor “dramatically and catastrophically impeded the company’s crucial access to the credit necessary to maintain and grow its business”.
Lexington Insurance, a division of Chartis, denied the Errors and Omissions claim brought under Baker Tilly’s E&O policy citing prior knowledge by the firm.
Calculated Risk Advisors helps all clients carefully review claims made wording and implement processes to prevent the denial of claims. Online quoting for small firms is available at http://InsureAccountants.com