How comprehensive is your coverage? Why a limitation in your professional liability policy for negligence only is a very bad idea.
by Rickard Jorgensen, FCII, ACIArb., ARM Recently one of our competitors relaunched and rebranded its accountants’ professional liability program. The new program was promoted as broader coverage and an enhancement upon the previously terminated program. There were various “bells and whistles” added to the program but one important feature was conspicuously overlooked and omitted from […]
by Rickard Jorgensen, FCII, ARM, ACIArb. There has been a lot of publicity about hacking attacks on CPA firms. Most recently, the big four CPA firms have been targeted by a sophisticated hack that compromised communications, documents and plans of some of their biggest clients. An article in The Guardian newspaper described an attack on […]
Due diligence is an essential part of the mergers and acquisitions evaluation process. It goes without saying that the partners of the acquiring firm have strong financial analytical skills but there are additional factors to be taken into consideration. Recognizing these elements during the due diligence process will reduce the risk of a malpractice claim […]
The prior knowledge limitation wording in a Claims Made professional liability policy means that if a member of your firm fails to notify an insurer of a claim or an incident that might reasonably be believed to give rise to a claim during the period of coverage, then the insurer can deny coverage. Early detection, […]
Every trial attorney will tell you that the first and most important tool in the defense of a malpractice claim against a CPA is a strong and carefully crafted engagement letter. This was brought home last week with one of our long-standing CPAGold™ clients. For years the CPA had provided corporate tax filing services to […]
This is the first in a series of blog posting on the subject of claims. The first article addresses the subject of what and when to notify a potential claim. An accountants’ professional liability policy is written on a claims made basis. This means claims – or incidents that might give rise to a claim […]Read More
A new prospective client is an exciting opportunity. However, even if the prospect comes from a referral you need to get a complete understanding of the potential client’s business and have a chat with the former CPA. At the initial meetings you will want to promote your firm’s services but also find out what sort […]Read More
The application of the doctrine of utmost good faith when applying for (or renewing) your professional liability insurance.
What is utmost good faith? Utmost good faith is a common law principle (sometimes called Uberrimae Fidei). Uberrima fides a Latin phrase meaning most abundant faith”. It is the name of a legal doctrine that governs insurance contracts. This means that all parties to an insurance contract must deal in good faith, making a full […]
It’s been over a year and a half since we started posting blogs. I thought it would be helpful if this month we posted a list of the topics to allow our members to look at some of our past blogs. 10 “Get Out of Court Free” Cards – Segregation of risk in an accounting […]Read More
March 23, 2016 by Richard B. Caplan of LeClair Ryan Today, businesses are increasingly purchasing cyber-specific insurance in an effort to mitigate the financial impact of a breach or other cybercrime. In terms of what might be covered in a cyber insurance policy, there are basically two types of coverage – “first party” coverage and “third-party” […]Read More