New Coverage Features
The following described some of the policy and endorsement changes that have been incorporated into the CPAGold™ policy for 2016.
Coverage has been increased up to $100,000 in defense expenses for proceedings before a state licensing board, peer review committee or governmental regulatory agency. This is in addition to the limit of liability and not subject to the deductible.
CPAGold™ provides unlimited coverage for you to respond to a subpoena for documents or testimony. This is in addition to the limit of liability and not subject to the deductible.
No limit coverage for actual loss of earnings and reasonable expenses incurred when you attend a hearing, trial or arbitration proceeding. This is in addition to the limit of liability and not subject to the deductible.
If ADR (Alternative Dispute Resolution) is used to resolve a claim, 100% of your deducible will be waived up to $50,000.
If you use an engagement letter for non-attest services, the deductible will be reduced by 50% up to a maximum reduction of $25,000 each claim, and $50,000 in the aggregate for the policy period.
If a claim is fully resolved within one year of being reported, the deductible will be reduced by 25% up to a maximum reduction of $25,000
Client notification and consultant costs
CPAGold™ will reimburse you up to $50,000 for the cost of hiring a third-party consultant or adviser to mitigate the potential of legal liability claims arising from any security breach which results in the loss or theft of confidential client information. This coverage may not be subject to the deductible. Defense costs are up to the policy limit of liability.
Discriminatory complaint regulatory coverage
CPAGold™ will reimburse you for unlimited attorney fees and other reasonable costs or fees paid to third parties as a result of a discrimination complaint filed with a government body or commission. This coverage is not subject to the deductible.
Supplemental claims expenses coverage
In the event the aggregate limit of liability is exhausted by payment of loss or defense costs under this policy and there remain any unresolved or outstanding claims, CPAGold™ will reimburse you for an amount equal to 10 percent of the limit of liability up to a maximum amount of $250,000 for defense costs incurred by you in handling defense of such unresolved or outstanding claims. This coverage is not subject to the deductible.
Not-for-profit directorships coverage
CPAGold™ will reimburse you up to $25,000 per claim/per policy period for legal liability arising out of your activities as a director or officer of a not-for-profit organization that is not a client. This coverage is not subject to the deductible.
Reputation protection coverage
CPAGold™ will reimburse you up to $10,000 per claim/$50,000 per policy period for reasonable fees, costs and expenses incurred by you for consulting services provided by a public relations firm approved by us to you in response to a reputation claim. This coverage is not subject to the deductible.
Privacy covered acts coverage
CPAGold™ provides broad coverage as part of the policy wording for electronic media perils, including misdirection of emails and denial of service. Now included in the policy.
Network security coverage
Coverage for the negligent introduction of a virus enabling unauthorized access into a third party’s computer system is now included in the policy.
No hammer clause
CPAGold™ will not settle a claim without your consent.
Unlimited additional coverage for fines and penalties arising from Section 6694 of the tax codes are now included in the policy.
Unlimited additional coverage for fines and penalties levied against you pursuant to Internal Revenue Code section 6695A now included in the policy.
Internal Revenue Code 7216 Penalties
Unlimited additional coverage for penalties imposed upon you pursuant to Internal Revenue Code section §7216 is now included in the policy.
This new feature provides a 10% reduction in the amount of the deductible, up to 50%, for each year you are claims free and is now included in the policy.
Cyber Enhancement endorsement
This new endorsement expands the accountants’ professional liability policy to include coverage for:
Breach and monitoring costs
Loss of digital property
Business interruption and additional costs
Cyber extortion coverage (see here for details of this coverage)
Basic coverage for this is $50,000 per part/aggregate. Increased coverage are available as follows:
- $100,000 per part/$100,000 aggregate
- $250,000 per part/$250,000 aggregate
- $250,000 per part/$500,000 aggregate
- $500,000 per part/$1,000,000 aggregate
See here for details of Cyber coverage provided by the program)
Full details of the various coverage enhancement’s are available in the policy.
This information is intended to provide a general overview of the coverage described. Only the insurance policy and any coverage quotation offered can give actual terms, coverage, conditions and exclusions.