CPA Practice Advisor

MAY 2017

Today's Technology for Tomorrow's Firm.

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MAY 2017 ■ www.CPAPracticeAdvisor.com 25 THE FIRM MANAGEMENT CHANNEL LATEST FIRM MANAGEMENT NEWS 7 Website Tips to Drive Real Accounting Firm Growth. If you're really committed to grow- ing your firm, you need to turn your website into a marketing machine. Invest the time and money to do this right up front. www.cpapracticeadvisor.com/12332629 What Accounting Firms Should Know About Trademarks. Your accounting firm's name serves as its brand identity and is generally the first thing clients see when they arrive at your office. www.cpapracticeadvisor.com/12331631 10 Tips for Firm Retreats. You know the old saying "if you don't know where you're going, any old road will do." www.cpapracticeadvisor.com/12332623 Indiana CPA Society Recognized as Best Place to Work. INCPAS ranked seventh out of the 46 small companies named to the list in the "small companies' category." www.cpapracticeadvisor.com/12331598 Georgia CPA Society Awards $115,000 in Scholarships. Students were selected based on their commitment to pursuing a career in account- ing, academic performance and achievements. www.cpapracticeadvisor.com/12330980 Important Components of a Professional Liability Insurance Policy ■ Covered and excluded services – Ensure that your policy contains no limitation to fees, areas of practice and or persons covered. You want to ensure coverage for a broad variety of professional services and persons that work for you. Coverage must be full tort (not restricted to negligence). ■ Claims coverage – Make sure that this covers verbal and written claims, does not exclude fee disputes, or if permitted by law, fines and penalties. ■ Hammer Clause – Your policy should not include a "hammer" clause. A hammer clause gives the insurance company the right to control claims settlement. ■ Coverage Extensions – A policy should contain additional enhancements- this might include the cost to respond to a subpoena; regulatory complaints; cyber liability protection; outside directorships; and other valuable coverage extensions. ■ Defense – The cost of an attorney to defend any claim can be included the limit of liability or in addition. Additionally, the deductible can apply to all costs, or just the settlement. ■ ERP (Extended Reporting Period) – This extends the policy for a defined period to cover claims arising from past services. You should ensure that the policy offers a variety of extension periods at reasonable costs (ideally with an unlimited option) and a free period of 60 days. ■ C a n c e l l a t i o n – C a n b e m a n d a t e d b y S t a t e insurance law; however, ideally the policy should not be cancellable by the insurer. ■ Cyber Cover age – Ensure that your policy provides legal liability protection for cyber related lawsuits as well as notification, credit monitoring, asset damage and extortion costs. ■ It is essential to review coverage every year. If your practice has changed in size or there has been a merger / acquisition you should amend coverage accordingly. ■ Establish a relationship with a broker that specializes in coverage for accounting firms and has access to experienced, highly rated insur- ance programs and can be a resource for you. ■ Steve Edelstein is the AVP of the retail team at Jorgensen and company, a professional liability insurance agency and a special- ist insurance broker. He can be contacted at (201) 345 2453 or sedelstein@jorgensenandcompany.com . THIS MONTH'S TOP FIRM MANAGEMENT SOCIAL MEDIA POSTS ■ Key Issues for Partner Agreements - Marc Rosenberg: http://bit. ly/2qO7WK0 ■ Mentoring Lessons from a 4 Year-Old - Liz Taishoff Sweigart from LinkedIn: http://bit.ly/2qNWsXf ■ Why Effective Leaders Must Manage Up, Down, and Sideways - McKin- sey Quarterly: http://bit. ly/2oOEgrm ■ 11 Things You Need to Know About Your Mil- lennial Coworkers - AICPA Blog: http://bit. ly/2qVV01o ■ Positive Comments Help Move the Firm Forward - Gary Adamson: http:// bit.ly/2prydJy By Steve Edelstein

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