Coverage Agreements: Key Issues to Consider: Is coverage provided for all professional services performed by YES: NO: YES: NO: the firm not limited to listed activities)? Does the policy cover all prior acts of the firm and of all the YES: NO: YES: NO: individual members including employees? Does coverage exist for acts for other than on behalf of YES: NO: YES: NO: “acts the Named Insured,” e.g. pro bono advice? Are the activities of members of the firm as officers or directors YES: NO: YES: NO: covered? Does the policy cover other business pursuits with clients of the YES: NO: YES: NO: firm? Are acts in a dual capacity as a CPA and officer, director or YES: NO: YES: NO: business partner with a client covered? Does the policy provide coverage for innocent partners in YES: NO: YES: NO: where one member of the firm has not complied with the conditions? Is the definition of when a claim is made sufficiently broad? YES: NO: YES: NO: Are optional extended reporting periods available? YES: NO: YES: NO: Does the policy provide coverage for: Professional services as an accountant and listed activities? YES: NO: YES: NO: Professional services for all activities for which you receive YES: NO: YES: NO: payment? Services as a fiduciary? YES: NO: YES: NO: Services as a trustee (can be by endorsement)? YES: NO: YES: NO: Services as a wealth manager can be by endorsement)? YES: NO: YES: NO: All prior acts of the firm and all members of the firm, including employees, when the insured, prior to the policy period, had not notified any previous insurance company of any act and the insured had no reason to believe a breach of professional duty had occurred? Does this coverage include: acts of CPAs for professional services before joining the YES: NO: YES: NO: firm? Prior acts of CPAs and the firm for professional services with the YES: NO: YES: NO: firm before inception of the policy? A CPA acting as trustee, executor, administrator, guardian or YES: NO: YES: NO: conservator? Personal Financial Planning? YES: NO: YES: NO: Pre- or post-judgment interest, appeal bonds, and related YES: NO: YES: NO: costs?
Coverage Agreements: Key Issues to Consider: Is coverage provided for all professional services performed by the firm not limited to listed activities)? YES: NO: YES: NO: Does the policy cover all prior acts of the firm and of all the individual members including employees? YES: NO: YES: NO: Does coverage exist for acts for other than “acts on behalf of the Named Insured,” e.g. pro bono advice? YES: NO: YES: NO: Are the activities of members of the firm as officers or directors covered? YES: NO: YES: NO: Does the policy cover other business pursuits with clients of the firm? YES: NO: YES: NO: Are acts in a dual capacity as a CPA and officer, director or business partner with a client covered? YES: NO: YES: NO: Does the policy provide coverage for innocent partners in where one member of the firm has not complied with the conditions? YES: NO: YES: NO: Is the definition of when a claim is made sufficiently broad? YES: NO: YES: NO: Are optional extended reporting periods available? YES: NO: YES: NO: Does the policy provide coverage for: Professional services as an accountant and listed activities? YES: NO: YES: NO: Professional services for all activities for which you receive payment? YES: NO: YES: NO: Services as a fiduciary? YES: NO: YES: NO: Services as a trustee (can be by endorsement)? YES: NO: YES: NO: Services as a wealth manager can be by endorsement)? YES: NO: YES: NO: All prior acts of the firm and all members of the firm, including employees, when the insured, prior to the policy period, had not notified any previous insurance company of any act and the insured had no reason to believe a breach of professional duty had occurred? Does this coverage include: acts of CPAs for professional services before joining the firm? YES: NO: YES: NO: Prior acts of CPAs and the firm for professional services with the firm before inception of the policy? YES: NO: YES: NO: A CPA acting as trustee, executor, administrator, guardian or conservator? YES: NO: YES: NO: Personal Financial Planning? YES: NO: YES: NO: Pre- or post-judgment interest, appeal bonds, and related costs? YES: NO: YES: NO:
CPA-CHECKLIST-FOR-PURCHASERS-OF-PROFESSIONAL-LIABILITY-INSURANCE.docx