The CPA's Role in Insurance and Risk Management Planning 

    You have a unique opportunity to help clients by both identifying the risks that can keep them from attaining their personal financial goals and structuring a plan of action to ensure that the risks are adequately protected against, through insurance and other risk management strategies. The information generated in developing a comprehensive financial plan, such as a list of assets and liabilities, cash flow sources and requirements, personal objectives, estate liquidity needs, investment objectives, and portfolio composition, are essential reference points used to develop and implement a risk management and insurance program for a client.

    The specific role you play in providing risk management and insurance planning services will depend on your level of expertise and the needs of your clients, and may include some or all of the following:  

    • Identifying risks to the client's life, health, property, and finances.

    •  Evaluating risks by considering the potential severity and likelihood of loss.

    • Developing a comprehensive set of risk management strategies, including the purchase of insurance

    • Making specific recommendations regarding insurance carriers and policy provisions.

    • Reviewing existing and proposed insurance policies to verify that risks are appropriately managed.

    • Selecting from among alternative insurance policies.

    • Providing specific policies, if appropriately licensed, and all professional responsibilities regarding compensation are properly addressed.

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