Landy Offers Professional Liability Coverage for Accountants

PRODUCT: Accountants professional liability insurance

COMPANY: Great American Insurance Company

BEST RATING: A+ (Superior)

AVAILABILITY: Coverage is available through agents and brokers who are licensed in property-casualty and registered with Landy. Retail and wholesale agencies can register with Landy for this product and other coverages.

FOCUS: The Landy Agency has added optional network security coverage, employment practices coverage, additional deductible reduction options and more to its professional liability product for accountants. The firm has been insuring accounting professionals since 1962, and its founder, Herbert H. Landy, “was a CPA and received the Man of the Year Award from the National Society of Public Accountants in 1987,” says John L. Torvi, vice president of marketing and sales.

Policyholders receive access to sample engagement letters and a free and confidential legal hotline for assistance with troublesome practice areas, with no time usage limitation, Torvi says. Landy is in the process of expanding risk management services for policyholders.

The coverage uses a self-rating express application. If the client answers nine questions affirmatively, they automatically qualify for coverage and choose their coverage option and price from a grid on the application. The express app offers an option that locks in premiums for two years and resets limits in the event of a claim in the first year.

UNDERWRITING: Professional services, including investment adviser, personal fiduciary and pro bono services, are broadly defined. The initial claim expense limit protects against erosion of policy limits by legal fees. Nonprofit directors & officers coverage is $10,000 per policy period. Newly added broad network security coverage up to $2 million is available by endorsement, as are employment practices and third-party discrimination coverage.

Supplementary payments in which no deductible applies include disciplinary proceedings, $10,000 per disciplinary action/$20,000 per policy period; security incident reimbursement, $10,000 per incident/$20,000 per policy period; reimbursement of expenses and earnings, $500 per day/$7,500 per claim/$25,000 per policy period; subpoena assistance, including subpoena response legal fees and expenses, no sub-limit; and public relations crisis coverage, $10,000 per claim/$30,000 per policy period.

Multiple deductible options are available, including aggregate deductible or first-dollar defense. Coverage also features 50% deductible reduction for claims resolved within one year; diminishing deductible up to 50% for claims-free longevity; and 50% deductible reduction for claims resolved through arbitration or non-binding mediation.

Internal revenue code 6694, 6695A and 7216 penalties are covered as damages, and registered representative and life insurance agent coverages are available by endorsement.

Landy offers premium credit for completion of qualified risk management programs, as well as a 30-day claim reporting grace period. Multiple extended reporting period options are available, including free unlimited options for death, disability and individual qualified retirees. Coverage only requires loss runs if a claim or disciplinary matter has been reported in the last five years.

MINIMUM PREMIUM: $386.

TARGET: Accounting professionals from all areas of practice, ranging from solo practitioners to large firms and including certified public accountants, tax preparers, enrolled agents and bookkeepers.

COVERAGE TERRITORY: Admitted in all states and Washington, D.C. Coverage is not available in Louisiana and Alaska.

CONTACT: John L. Torvi, vice president of marketing and sales; The Herbert H. Landy Insurance Agency Inc., 75 Second Ave., Suite 410, Needham, MA 02494; 800-336-5422, ext. 117.

Ronimarie Acord is an IA contributor.