765-395-7761

Accountants Professional Liability


An accountant or accounting firm performs services that are based upon a high level of expertise. Their clients, typically, are very dependent upon the advice they receive. Therefore, when a client believes he or she has been financially harmed by bad advice, chances are high that they may sue.

A standard, general liability policy excludes any loss involving professional services. In light of that, accounting professionals should consider the protection offered from a type of errors and omissions coverage called Accountants Professional Liability Insurance. Such policies handle losses involving alleged negligence in auditing and preparing financial statements, providing faulty tax advice or providing poor financial reporting and/or record-handling advice.

Accountants Professional Liability Policies are not standardized, but these policies typically have the following, common features:

  •  coverage is on a claims-made basis–meaning that coverage depends upon when a possible loss is recognized and reported rather than when it actually occurred;
  • it is subject to a specific deductible–though some policies may have separate coverages with separate, applicable deductibles
  •  coverage is available for prior acts and predecessor firms–this coverage may be critical for professionals who have left firms that are no longer in operation (due to mergers/buyouts, etc.).

Protection applies to the accountant or firm named in the policy as well as others such as partners, directors, officers, employees, stockholders and heirs. Coverage applies worldwide for claims that are filed in the United States, its territories or possessions, or Canada.

However, some accounting operations may not qualify for coverage such as firms engaged in the following:

  • S.E.C. (Securities Exchange Commission) activities
  • Real estate or other investment activities
  • Providing services to investment bankers
  • Performing a substantial amount of work for financial institutions

Chances for coverage are also slim for an individual or firm that has experienced disciplinary actions or reprimands.

Of course, to acquire proper coverage, an astute accounting professional should be certain to get help from an insurance professional.


COPYRIGHT: Insurance Publishing Plus, Inc. 2017

 

All rights reserved. Production or distribution, whether in whole or in part, in any form of media or language; and no matter what country, state or territory, is expressly forbidden without written consent of Insurance Publishing Plus, Inc.


 

Insurance Agents And Brokers Professional Liability Insurance


     Insurance Agents and Brokers Professional Liability Policy protects against loss due to wrongful acts committed by an insurance agent in the course of providing services as an agent or broker.

 

     The insurance company agrees to pay amounts the insured is legally obligated to pay as damages because of a wrongful act. However, this insurance must cover the wrongful act.

 

     For example, Ginny works for Best Agency Ever, Inc. She misfiles several applications, resulting in five parties not receiving homeowner policies. During a tornado, two of the parties have losses to their homes. They both sue Best Agency because neither had a policy in force. Best Agency’s Insurance Agents and Brokers Professional Liability Policy would handle the lawsuits.

 

A wrongful act is a term that is defined, consisting of the following:

  • The act must be committed, or alleged to have been committed by an insured
  • An act, error, or omission must either have actually occurred or is alleged to have occurred.
  • The act, error, or omission must arise from professional services.
  • The professional services could have been rendered or should have been rendered but were not.
  • Damages must arise from the alleged or actual act.

 

     Besides covering wrongful acts and insurance company would also handle the, often, high expense of providing a legal defense against lawsuits.

 

     A typical Insurance Agents and Brokers Professional Liability Policy includes additional protection such as Spousal Liability (protects the assets of an insurance professional’s spouse that may be named in a lawsuit), protection of innocent insureds and claims that are related to instruction of insurance courses.

 

     There are various situations that are not eligible for coverage under an Insurance Agents and Brokers Professional Liability Policy including instances of abuse, bodily injury, property damage, contractual liability criminal activities, investments, electronic data and many other instances. The exclusions involve either areas that are covered by other types of coverage or which are ineligible for insurance protection as a matter of public policy.


COPYRIGHT: Insurance Publishing Plus, Inc. 2017

All rights reserved. Production or distribution, whether in whole or in part, in any form of media or language; and no matter what country, state or territory, is expressly forbidden without written consent of Insurance Publishing Plus, Inc.

Connection failed: SQLSTATE[08004] [1040] Too many connections
Fatal error: Call to a member function prepare() on a non-object in /WebClusterFS/httpdocs/_shared/lsws_cache/lib/CacheManager.php on line 68