A typical concern for accountants if they change professional indemnity insurance providers is that they will lose their continuous cover should a claim arise. The solution is simple – accountants should ask staff if they are aware of any circumstances that may give rise to a claim. If there are any concerns, a notification to the current insurer should be made prior to the expiry date.
To avoid ambiguity of what constitutes a ‘circumstance’, below a table is listed which includes two categories: ‘obvious’ and ‘less obvious’ types of circumstances. The table should be used as a guide only. It is generally a matter for the courts to interpret whether a fact, situation or circumstance is a ‘fact which might give rise to a claim’ or not. At the end of the day, if you are in doubt, you should notify the insurer.
In summary, a ‘circumstance’ can be defined as a fact, situation or circumstance that the insured knows about and which the insured should reasonably realise may give rise to a claim in the future. All professional indemnity proposal forms will ask if you are aware of any circumstances that may give rise to a claim. The answer is that if you are not aware, then you are not aware!
As an accountant you should ensure that you have the best policy for you. Staying with the same insurer and not being willing to review your cover could be costing you. The Professional Risks team have found that in many cases, accountants who have shopped around for their professional indemnity insurance policy and have become clients of Accountancy Insurance have managed to save up to 50% off what they are currently paying. The substantial savings do not result in any exceptions to the policy coverage. It is easier than you think to obtain broad coverage which is relevant to your individual circumstance and is still extremely competitive.
For an obligation free quote for your accounting firm, please call the Accountancy Insurance Professional Risks team on 1300 552 867 or complete a quick quote application by clicking on the link: https://www.accountancyinsurance.com.au/pi/application-form.html
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