What Your Liability Policy Probably Doesn't Cover

Insurance company beats accountant in court over lost client data. How to make sure it doesn’t happen to you.

CPA Trendlines Research

In yet another warning to firms about safeguarding client databases, insurance policies won’t necessarily protect you if the data gets lost or stolen, according to a CPA Trendlines reading of a new legal case.

The highly influential U.S. Court of Appeals for the Seventh has ruled that Nationwide Insurance Co. has no duty to defend or indemnify an accountant who lost sensitive personal information from client files.

Here’s the case, analysis and comment:

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