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| Q: |
In addition to doing tax I am involved in insurance, mutual fund, variable annuity or real estate sales are these activities covered? |
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| A: |
No our policy covers tax and accounting only. |
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| Q: |
Is there a deductible? |
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| A: |
Yes it is $1000.00; however, defense and legal expenses are paid on a 1st dollar basis. |
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| Q: |
Are my prior activities covered? |
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| A: |
There is most always a significant time delay between when the alleged mistake was made and when the mistake was discovered. In most cases we will provide full prior acts coverage. |
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| Q: |
What coverage limit should I buy? |
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| A: |
This is a very subjective question. However, when you choose your limits you should consider:
- The personal assets of you and your spouse (if married).
- The wealth and complexity of your client's situations.
Since 1981, we have seen most claims settle in the $15,000 - $40,000 range. A few claims have exceeded $500,000. In most cases we will offer you limits between:
- $100,000/$200,000 - $1,000,000/$2,000,000.
Please be advised defense expenses (attorney fees) do not erode your policy limit. These expenses are covered and paid outside the policy limit. |
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| Q: |
Are my employees covered? |
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| A: |
Employees, owners, officers, directors and partners of the applicant firm are covered. |
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| Q: |
Does the policy cover claims made against me because my client suffered tax and interest penalties because I made a mistake completing their tax return? |
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| A: |
Yes it does. |
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