What is professional liability insurance?
Professional liability insurance provides your firm and all its professionals and staff with protection should a claim be brought against them alleging malpractice in the rendering or failure to render professional services in the capacity of a accountancy firm or an accountant.
What does the policy do and what are the main benefits?
When a claim is brought there will always be substantial costs to be incurred, particularly as respects lawyer fees, in mounting a defence. These costs are covered by the policy. Additionally, should damages be awarded against you or a settlement is agreed to that requires damages to be paid to the claimant, the policy will, subject to the limit of the policy, pay these too.
How does your policy take care of defence costs?
Our policy will pay the cost of defending a claim made against you (lawyer costs, etc.) and will cover these costs without any impact on, and will be in addition to the limit of insurance provided under the policy. The limit of insurance exists to pay for settlements or awards.
Does your policy provide prior acts coverage (coverage for all services provided or acts committed both prior to and after the policy effective date)?
Yes it does. However, like all such policies, it does not cover any claim or circumstance that later becomes a claim that you knew about prior to the effective date of the policy. These claims or circumstances should be reported to your insurer of record when you first became aware of them.
What is the coverage territory and where would your policy cover me?
It would cover you for the provision of your professional services anywhere in the world, provided that the claim made against you is made in Canada, the United States, or Bermuda.
How does your policy take care of those “innocent” insured parties where a policy exclusion comes into play because of a “guilty” insured person?
The policy exclusion relating to fraud or dishonesty of an insured, and the policy condition relating to the failure to comply with “the duties in the event of a claim” will not be imputed onto any other insured covered by the policy.