A claims-made policy in insurance is a type of policy that covers claims that are made/reported during the policy period, regardless of when the incident causing the claim occurred. An occurrence-based policy covers claims arising from incidents that occurred during the policy period, regardless of when the claim is made/reported.
Professional liability is a claims-made policy, as damages may only become known well after the services have been provided.
It is important that you do not make any commitments (including payments), even if you think you are at fault, as it could impact your coverage. Instead, contact CPA PLI immediately. Your Claims Examiner will manage communication with your client, including the next steps.
Immediately contact CPA PLI for guidance and support at 1-800-267-4734.
Start by identifying and understanding the specific issue or problem raised. Avoid explaining or defending yourself to the firm. Document the information obtained and promptly report the claim. Assure your client that you will investigate the matter. Do not accept responsibility at this stage.
Here is a checklist of actions you should consider taking if you ever find yourself in this situation:
Claim value is estimated based on a combination of factors including damages claimed, coverage available, liability assessed, and the expenses involved to support the process.
As per the terms of your policy, it is your responsibility to pay the deductible. Depending on your coverage, the deductible may apply to claim payments made to a third party or, in some cases, to defence costs. Your Claims Examiner will explain how this applies to your claim and outline the process.
Reporting a claim does not necessarily lead to higher premiums. We encourage you to contact your program representative to assess whether your claim or potential claim will affect your premium in any way. Please call 1-800-267-4734.
We aim to settle your claim as quickly as possible. The time required to handle each claim depends on the complexity of the situation. Your Claims Examiner will explain the claims process and will keep you up to date on the process.
Once you have submitted the claim form, a Claims Examiner will reach out to you within 24 business hours to collect more details and evaluate your claim.
Report the claim immediately, before taking any further action. You can do this by completing a claims form. Additionally, per the terms of your policy, refrain from making any payments or commitments to anyone involved, and do not admit liability, before speaking to CPA PLI.
Provincial by-laws require CPAs to maintain insurance for a period of six years after they cease their practice. Maintaining insurance ensures coverage is available in the event that a loss is discovered or reported even after the services themselves have been discontinued.
This is a challenging time, and we offer our condolences. Provincial by-laws require CPAs to maintain insurance for a period of six years after they cease their practice. Maintaining insurance ensures coverage is available in the event that a loss is discovered or reported even after the services themselves have been discontinued.
Follow the instructions provided on your invoice. We offer eco-friendly green payment options, including major credit cards (up to $2,000 including taxes), Interac Autodeposits, electronic fund transfers, and bank wires. If these methods are not feasible, we also accept payment by cheque.
Simply provide us with estimates of your expected gross billings and a sample of the services you expect to provide.
While your services may not fall under “public accounting services,” professional liability insurance is strongly advised. Our experience shows that tax-related services represent the greatest exposure for accountants.
Any accountant providing public accounting services must have insurance to practise. It is a requirement in order to obtain a license to practise.
Several factors determine the cost of insurance, including years of experience, revenue, number of employees, prior claims, type of services as well as claims history.
Our coverage is exceptionally robust. Unless the matter falls outside the coverage grant or an exclusion applies, coverage exists. For example, losses arising from criminal, dishonest, or fraudulent acts are excluded. Please refer to your policy documentation for a complete overview of coverage and exclusions.
Yes, two policies are required. You must obtain a policy through the Québec Fond for services provided in Québec. A second policy is required to ensure coverage for services provided outside of Québec.
The excess coverage provided by ACPAI expands the coverage limits up to $10 million and enhances the level of protection offered by the Québec Fond, ensuring that you receive the most comprehensive protection available in the market.
Several factors are usually considered when determining the appropriate amount of coverage, including regulatory requirements, number of employees, practice location, revenue, and the types of services provided.
Insurance coverage provides several layers of protection:
Protecting yourself and your firm: Insurance coverage safeguards you against claims, lawsuits, or allegations of professional negligence. Without coverage, your personal assets or your firm’s assets may be at risk.
Protecting the public: When you maintain insurance coverage, you are purchasing a safety net that is dedicated to your clients should an error or omission occur whilst providing services.