Content area
Full text
What should you and your partners look for in a professional liability carrier? The following are suggestions from two major liability insurers of what to ask: (1) Does the provider specialize in serving CPAs? Providers that do can focus exclusively on your needs. (2) Does the provider insure other professionals? This is especially important for CPA firms branching into financial planning services, business brokerage activities, and other areas. (3) Does the provider demonstrate financial stability? Use a combination of A.M. Best's and Standard & Poor's ratings along with a reliable broker to determine the stability of the provider. Look for a rating of "A" or higher. (4) Does the provider use centralized claims processing? And, does that centralized unit specialize in service to CPA firms? (5) Does the provider hold admittedcarrier status? State-admitted Professional Liability Insurance, Inc. (PLI; a subdivision of Zutz Insurance in Wilmington, Del.) providers must file copies of policies and forms with state insurance departments and request approval before selling insurance. The state's guarantee fund will most likely protect subscribers if an admitted carrier becomes insolvent. Source: CPA Administrator's & Manager's Report (619-699-6716 or 800-831-7799)