ACCOUNTING COMPANIES LOOK FOR AN INSURER
The newly-established Association of Specialized Accounting Companies is going to collaborate in the development of a new insurance product that will cover the professional risk in the branch. At present, companies offer insurance to auditors only. None of them is prepared to cover the risk from accounting mistakes which may cost a lot. However, most accounting houses have a clause in the agreements with their customers, which stipulates that they take part of the fines imposed for irregular account keeping. That's why the companies are interested in this type of insurance. The association is planning to turn to one of the big foreign insurance companies in the country for the development of the new product. It has already investigated the possibility to reinsure that risk at Lloyds.The association was established on October 16, 2003 by 20 accounting firms which left the almost broken Association of Accounting Houses in Bulgaria. The new association is presided by Vladimir Ekimov. The criteria for accepting new members were approved at a general meeting held on January 22. Applicants should meet the following four requirements: at least three-year activities or a turnover of EUR20,000 for the past financial year; clean legal dossier of the managers of the accounting house; at least three employees, of whom at least a half with economic or legal degree. The professional risk insurance will probably be added as a requirement later, too.