Accountants Standard (ACSTD) provides professional liability insurance for accounting firms. It uses a comprehensive rating algorithm with multiple credit and debit factors based on firm size, revenue, area of practice, and claims history.
| Factor | Description |
|---|
| Gross Revenue | Revenue-based classification tier — the primary rating driver |
| Increased Limit | Multiplier applied when selecting higher limits of liability |
| Deductible Option | Credit for selecting a higher deductible |
| Territory | Geographic factor based on the state and region |
| Credit/Debit | Underwriting adjustments from the IRM questionnaire |
| Area of Practice (AOP) | Multiplier based on types of services provided |
| Longevity Credit | Discount for multi-year policyholders |
| Experience Rating | Factor based on claims history |
| Staff Size | Adjustment based on number of accounting professionals |
| Claims Frequency | Factor based on number of prior claims |
| Public/Private | Additional factor for firms involved in public offerings |
| Minimum Premium | Floor premium — the quote will never be below this amount |
| Coverage | Description |
|---|
| Cyber Liability | Cyber add-on with separate limits and deductible |
| EPLI | Employment Practices Liability |
| Embezzlement | Coverage for employee theft |
| CEOL | Claim Expenses Outside the Limits — unlimited expense coverage |
| CEAL | Claim Expenses in Addition to the Limits — separate expense limit |
| Supplementary Payment | Additional payment coverage option |
| Option | Abbreviation | What it means |
|---|
| Claim Expenses Inside the Limits | CEIL | Defense costs reduce the available limit |
| Claim Expenses Outside the Limits | CEOL | Defense costs do not erode the policy limit |
| Claim Expenses in Addition to the Limit | CEAL | A separate percentage of the limit is available for expenses |
| 50/50 Split | 50/50 | Up to 50% of the limit may be used for claim expenses |
| Credit | What qualifies |
|---|
| Peer Review Credit | Firm has undergone a formal peer review |
| Engagement Letter Credit | Firm uses engagement letters consistently with all clients |
| Longevity Credit | Discount for policies that have been in force for multiple years |
- The full IRM (Insurance Risk Management) questionnaire is required before rating.
- Guidelines validation runs automatically before the quote is generated.
- Up to 4 limit selections can be presented on a single quote.