Proof of insurance

[ILLMAS]

No, I didn't get pulled over, I was asked by a potential client and if I can send them a copy of my insurance (E&O) because a family member of their was put in a mess by a preparer.   Would you feel disrespected?

[Lee B]

If a potential client asked me face to face, I wouldn't have a problem showing my policy to them.

However I wouldn't send them a copy

Unless they are a third party certificate holder who receives notices of coverage and cancellation, showing or sending a copy means nothing.

[rfassett]

I would tell them to first show evidence of the referred to mess. In this highly litigation society we live in, I would be cautious of any potential client that asked to see my e&o before even meeting me. Even after meeting me i would probably send them packing.

[JohnH]

This is an interesting question.  In the contracting business, it is normal for customers to require proof of workers comp and liabiity insurance from vendors as a condition of awarding a contract.  But the main reason is to protect themselves against worker comp claims and also because litigation is common in that industry when liability issues arise.  

Applying that same logic in a client situation triggers the thought that the client is already thinking about assigning blame if something goes wrong.  I might be inclined to make the decision based on the complexity of the return. If it has the potential to be unusual in any sense, then declining to take them on as a client might be the best route.  So agreeing to provide proof of insurance would probably best be contingent on the outcome of the initial meeting.  

[Gail in Virginia]

1 hour ago, JohnH said:

This is an interesting question.  In the contracting business, it is normal for customers to require proof of workers comp and liabiity insurance from vendors as a condition of awarding a contract.  But the main reason is to protect themselves against worker comp claims and also because litigation is common in that industry when liability issues arise.  

Applying that same logic in a client situation triggers the thought that the client is already thinking about assigning blame if something goes wrong.  I might be inclined to make the decision based on the complexity of the return. If it has the potential to be unusual in any sense, then declining to take them on as a client might be the best route.  So agreeing to provide proof of insurance would probably best be contingent on the outcome of the initial meeting.  

Actually, it has been my experience that most certificates of insurance are requested by other contractors or customers who have employees because anyone they give a 1099 for non-employee compensation will be added to their workers' comp policy unless they can show they have insurance.   That certainly would not be the case with E&O insurance.  I would  be suspicious that they are checking to see if you have deep enough pockets to be worth suing.  But maybe I am overly suspicious. 

[Jack from Ohio]

17 hours ago, ILLMAS said:

No, I didn't get pulled over, I was asked by a potential client and if I can send them a copy of my insurance (E&O) because a family member of their was put in a mess by a preparer.   Would you feel disrespected?

1. Yes, I would feel distespected.  Your skills, abilities, experience and knowledge are not dependent upon the amount of liability insurance you choose to have.

2. Just say NO to giving them a copy.  

3. Reconsider your choice about this person becoming a client.  

4. He thinks he knows more about these things than you do.

5. RUN FORREST, RUN!!!

[Max W]

A family member?  Be Careful! It might be the potential client them self. 

[mircpa]

I agree with John it is quite common in contracting business clients does insist on having to look at insurance before taking any services. I suggest keep in mind totality of circumstances to even share copy of policy & having him/here as client.

[ILLMAS]

Thank you all, the sharing of my insurance info is not going to happen, I have never asked my doctor for a copy of their malpractice insurance.  So if anyone here, asks their doctor for a copy of their insurance please let us know 

And Happy Sunday (Palm) to all