The question is often raised, what constitutes a “reportable incident” to my insurance carrier? To answer this one should review the specific language in your professional liability (aka. errors & omissions) policy. Each insurance policy is different. Only your specific policy can provide you with the conditions, definitions, and provisions relevant to your scenario. The […]

Insufficient coverage can be costly in the RFP process By Gary Sutherland, CIC, MLIS Recently I was asked to review a fidelity bond in a RFP that was in the final due diligence phase of acceptance. The investment professional carried their current bond for five-plus years and believed that it met or exceeded what was needed […]

We frequently receive questions from individuals who have been asked to, or are currently acting as, a Trustee. The most frequent question is in regards to coverage for these services under their (accountants) professional liability policy. Although each policy form is different, it is our opinion that most accountants professional liability policies intend to provide […]

Professional Liability Attorney, George Rockas, takes time to identify the most frequent causes of malpractice claims and some practical advise on how to avoid them. Every malpractice claim is different, but if you take the time to follow these best-practices, your likelihood of a claim will certainly decrease. Poor Relationship with Client Work to make […]

Historical data shows that professional liability claims for tax services represents 55% of all claims.  Yet, individual tax engagements represent the service where accountants are lease likely to utilize formal engagement letters. Engagement letters have proven successful in mitigating and defending professional liability claims. Download sample Tax Engagement Letter Now McGowanPRO has now compiled all […]

This information was developed by Kaufman Dolowich Voluck, LLP and is reproduced with the direct permision of Philip Voluck, Esq., Managing Partner. The expansion of Social Media, both in and outside of the workplace, impacts how professionals run their business, market their services, hire applicants, and manage their employees.  The law firm of Kaufman Dolowich Voluck summarizes […]

With change comes the potential for professional liability risk, and CPA firm succession is no different. While the claims databases of professional liability insurance carriers are not teeming with these types of claims, there will be an increase in claims as a result of the succession issues — as well as the explosion of merger […]

By: John F. Raspante, CPA Professional liability claims faced by CPAs will never be eradicated, but they can be reduced if solid risk management and constant adherence to professional standards are followed. Follow these techniques to help lessen exposure in the increasingly litigious environment in which CPAs practice. Client Screening, Selection and Retention Client screening, […]

Gaining new clients, and maintaining your current clients, is obviously a priority in growing your practice. As an Investment Advisor this involves several challenges including compliance issues and the overall stigma created by high publicity Ponzi schemes. But, are you be overlooking a valuable asset in marketing and retaining clients? Your insurance. Your clients and […]

And, its Impact on your Professional Liability Policy The Hammer Clause (aka cooperation clause or consent to settle clause) is a provision found in most professional liability insurance policies. A typical Hammer Clause contains two elements: 1. It requires the Insurer to obtain the consent of the Insured prior to settling a claim. 2. In […]