Cyber insurance is no longer just an IT concern. Accounting firms and CPAs are increasingly involved in cyber insurance applications, renewals, and risk discussions because they understand a client’s controls, policies, and financial exposure. As cyber insurance underwriting becomes more detailed, CPAs are often asked to help validate whether safeguards exist and how cyber risk could impact the business.
This guide explains why CPAs are pulled into cyber insurance decisions, what insurers typically ask, and how accounting firms can support clients without becoming cybersecurity experts.
Why Cyber Insurance Matters to Accounting Firms
Accounting firms handle some of the most sensitive business data: financial records, tax information, payroll details, and personally identifiable information (PII). This makes both accounting firms and their clients attractive targets for cybercrime, particularly phishing, ransomware, and business email compromise (BEC).
From an insurer’s perspective, cyber risk is tightly linked to financial impact. A cyber incident can disrupt operations, delay filings, trigger regulatory notifications, and result in direct financial loss. Because CPAs understand these downstream effects, insurers and clients alike look to accounting professionals for guidance during the cyber insurance process.
Why CPAs Are Asked to Support Cyber Insurance Applications
Cyber insurance applications increasingly include questions about:
- Internal controls and documented policies
- Data handling and retention practices
- Backup and recovery processes
- Employee training and awareness
- Financial exposure from downtime or fraud
Clients often turn to their CPA to help interpret these questions and confirm whether appropriate controls exist. While CPAs are not expected to implement cybersecurity tools, they are trusted to help clients answer accurately and identify where clarification or additional support may be needed.
Common Cyber Insurance Questions CPAs Encounter
When supporting clients, CPAs may see questions such as:
- Do you have documented security and access control policies?
- Are financial systems and sensitive data backed up regularly?
- Are employees trained on phishing and fraud prevention?
- Have you experienced a prior cyber incident or financial loss related to cyber events?
- What is the potential financial impact of a system outage or data breach?
These questions are designed to help insurers assess risk exposure and loss severity, not just technical maturity.
Where CPAs Add the Most Value
CPAs add the most value by helping clients:
- Translate insurer language into business and control concepts
- Validate documentation rather than speculate on technical details
- Identify gaps that may affect coverage or premiums
- Coordinate with IT providers or advisors when technical confirmation is required
Clear, accurate responses reduce delays in underwriting and lower the risk of coverage disputes later.
Why Accuracy Is Critical
Cyber insurance applications are representations of fact. Overstating controls or misunderstanding questions can lead to coverage limitations, exclusions, or claim challenges. CPAs play a key role in helping clients avoid these risks by ensuring answers are defensible and consistent with actual practices.
This is especially important as insurers increasingly review controls again at renewal or during a claim.
A Practical Resource for CPAs
To support accounting firms, Kovermi provides a plain-language breakdown of cyber insurance security controls, aligned to common insurer questionnaires. The controls explain what insurers ask, why they care, and what gaps are commonly flagged—without requiring deep technical knowledge.
For detailed definitions of the cyber insurance controls CPAs are most often asked to confirm, see the Cyber Insurance Controls Explained for IT Firms and CPAs page.
Comments are closed