Hartford Introduces Professional Liability Insurance for Private Accounting Firms
Accounting firms with up to 50 accounting professionals on staff can now look to the Hartford Financial Services Group, Inc. for their professional liability protection as well as their general business insurance needs and financial services products. The Accountants Professional Liability product provides coverage for certified public accountants and other accounting professionals, including public accountants, enrolled agents, tax preparers and bookkeepers.
“The accounting industry has changed significantly over the past several years,” said Greg Leffard, a vice president at Hartford Financial Products. “Today, private accounting firms provide a broader array of services and face more potential liability than ever before. That’s why they need insurance protection that matches the breadth of their services. We’re confident that our Accountants Professional Liability product can help meet their needs.”
Professional liability insurance is similar to malpractice insurance, protecting professionals from liability when an action – or failure to take action – results in injury or financial damage to a client. Key policy features include:
- A broad definition of professional accounting services that includes both advice given and services performed as an accounting professional;
- Automatic coverage for newly acquired entities with five or fewer professionals, and for predecessor firms;
- A 50 percent reduction of the deductible when claims are settled by alternate dispute resolution;
- A 50 percent deductible credit for the use of engagement letters for services that don’t involve an audit or other attestation services;
- Payment for defense costs in disciplinary proceedings and reimbursement for lost earnings due to court appearances up to $500 a day per insured, $10,000 per policy period;
- Defense coverage for discrimination charges up to $50,000 per policy period;
- A variety of options to extend the claim loss-reporting period, including extensions that cover retirement, and death and disability, for sole practitioners.
The Accountants Professional Liability product is underwritten by Hartford Financial Products, an underwriting unit of The Hartford, administered by Arrowhead General Insurance Agency, Inc. of San Diego, Calif. and sold through agents and brokers. Arrowhead is a nationally recognized program manager with a dedicated team of experienced professional liability underwriters specializing in accounting industry customers. Arrowhead’s sophisticated technology platform, Arrowhead Exchange, includes an automated application process enabling agents to quickly obtain premium indications and online quotations.
“We are pleased to be working with The Hartford on this excellent program,” Chuck Brady, president of Arrowhead’s Professional Liability Division. “We are confident that The Hartford’s strength and experience, coupled with the efficiency of our online platform, Arrowhead Exchange, and our very large distribution base, will make this program a great success.”
The Hartford’s Accountants Professional Liability product joins offerings from:
- The American Institute of Certified Public Accountants (AICPA), who established the Accountants Professional Liability Insurance Program in 1967,
- National Society of Accountants
- The Philadelphia Insurance Companies
- State Farm Insurance and
- CPA Mutual
Voice of the Editor
Which isn’t completely true. I mean, occasionally I drop by when I manage to sneak out of the nonstop frat party over at Going Concern, but I’m mostly a wallflower over there. I’m happy to say that I’ve been given express permission (or explicit orders, if you like) to wander over here to AccountingWEB more often.
Why is that, you might ask? My job is to replace the irreplaceable Gail Perry as Editor-in-Chief. What does that mean? I don’t really know! I think it’ll be fun getting a feel for things, throwing in my own thoughts here and there, and listening to the discussions you’re having about the accounting profession.