Protexure Accountants knows that having clear answers is key to your professional liability insurance vetting process, feeling at ease with your decisions, and knowing that Protexure Accountants provides the support your small accounting business needs. Below, we provide answers to commonly asked questions. And if you don’t see an answer to a question you have, contact us!
Protexure Accountants is an innovative professional liability insurance program specifically designed for solo practitioners, CPAs and small accounting firms. A streamlined web-based process makes it easy to complete an application, access policy information, renew coverage and manage your account – online and at your convenience. For a more personal touch, in-house licensed professional liability specialists will answer questions and provide independent guidance. The program is competitively priced, with all the benefits you have come to expect from a professional liability insurance provider.
Some accountants fail to recognize that professional liability insurance is critical to managing risk and protecting their business. Claims against accountants can also impact personal assets. A determined client or savvy attorney can sue you regardless of your professional liability status. A policy can protect you from losing assets, paying high legal fees, and potential business failure. The relatively low cost professional liability premium from Protexure Accountants makes the protection we provide all the more worth the cost.
The definition of who is insured under a professional liability policy typically includes current, former and future: principals, partners, officers, members and employees of the firm and the “Named Insured” (the firm itself). The definition may also include contract or temporary employees working under the supervision of an insured.
You should pay special attention to the exclusion section of your policy which identifies the activities or risks that are not covered. Some examples of common exclusions are: criminal, dishonest, or fraudulent acts committed by an insured. Another common exclusion eliminates coverage in the event an insured had knowledge of a claim prior to the effective policy date. Make a practice (prior to your expiration date) of surveying all staff regarding any known circumstances that are or could potentially become the basis of a claim, and report these matters before your current policy expires.
It’s easy to get a risk-free quote and a substantial savings on your professional liability insurance premium. Our affordable rates are right-sized for your small firm, and larger firms are specifically excluded to keep premiums low. Apply online at www.protexureaccountants.com or call 888.803.9898. Our professional liability specialists will provide you with a quote within 24 hours and will walk you through policy features and benefits that are tailored to meet the needs of your small accounting firm.
Many factors influence the premium charge for your professional liability policy. Insurance companies evaluate their loss experience to determine practice areas that impact the frequency and severity of losses. Your firm’s loss history and the length of time you have continuously purchased insurance will affect your premium. And of course, the limit of liability and deductible options you select will be also be a factor.
The prior acts date, also referred to as the retroactive date, represents the date after which services you provide are covered by your professional liability insurance policy. The prior acts date typically is the effective date of the first claims made policy you purchase and will continue to be shown on subsequent continuously renewed policies.
Split limits define the “per claim and the aggregate limit” the insurer will pay. For example, a limit of $1,000,000/$2,000,000 means that the maximum payment on any one claim is $1,000,000 and the maximum payment for multiple claims is $2,000,000. There is an increased premium charged for the split limit versus a single limit option.
Professional liability policies will pay for covered damages you are found to be responsible for and for expenses paid to defense counsel to represent you when a claim is made. Insurance companies may offer an option where the limit of liability will only be applied to actual damages paid, with the expense benefit paid outside the limit of liability. This option will result in a higher premium when compared to a policy with expenses paid within the limit of liability.
An aggregate deductible is an option that limits your contribution to the deductible amount shown on your declarations page, regardless of the number of claims reported during the policy period. This option will carry a premium surcharge compared to a policy offered with a per claim deductible.
First dollar defense is a deductible feature that converts the deductible to only apply in the event damages are paid to resolve a claim against your firm. The company pays all expenses and fees in handling the claim. This feature will result in a surcharge to your premium.
Extended reporting, also referred to as tail coverage, provides for the reporting of claims following the termination of your last professional liability policy. This coverage is especially important when your firm ceases to exist, and allows you to have continued coverage for the services you provided prior to closing your practice. Options are typically for 1-6 years.
There is no catch. Rates are typically determined by the loss experience of policyholders insured by an insurance company. Our program is designed to meet the needs of CPAs, solo practitioners and small accounting firms. Rates remain competitive because our underwriting philosophy excludes large firms which have higher risk and greater claims volatility. Those savings are passed along to you.
Receiving a claim, or even the threat of a claim, can be stressful. The best way to ease your mind is to report it to your legal claims insurance carrier as soon as possible. Include a short write up of the allegations, with the name of your firm, the services provided, the claimant name, when the services were provided and potential damages. Email the description with any papers that you have received to firstname.lastname@example.org. If you prefer to fax the information, the fax number is 877-622-6230. For regular mail, please send your documents to Crum & Forster, Attn. Executive Products Claims Department, 305 Madison Ave. Morristown, NJ 07962. To reach the claims department by phone call: 973-326-7309.