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