It is a truth universally acknowledged that not all insurance policies are created equal. For example, when it comes to professional indemnity insurance (PI) for chartered accountants, you’re never going to find a “one size fits all” policy.
Different policies come with different features including legal defence, contract breaches, wrongful employment practices or run-off cover if a practitioner leaves the profession.
With the devil in the detail, consumers can be at risk if they do not fully understand the fine print and conditions in the insurance cover they have purchased.
Why claims are rejected
Consumers are often angry in cases where their claims are rejected, but in some cases the policyholder has misunderstood their cover. Often, they think they are fully covered in areas where they are not.
“For CAs, it’s often issues around their advice to clients,” says Tanya Dasgupta, Aon’s national professions leader in the firm’s Affinity Division.
“Are accountants covered in cases where the client misinterprets their advice? For example, if a client makes a claim against them because the client thinks the CA has done something wrong, but in actual fact they haven’t, does the CA have to pay for the defence costs?
“Are accountants covered in cases where the client misinterprets their advice?”
“And what about mistakes they may have made before they took out the cover? Are they exposed to those mistakes or does the policy cover them?”
Over the past year, the working landscape has been up-ended by the disruptions of the COVID-19 pandemic; this has introduced a new set of uncertainties for CAs.
Almost all industries are facing challenges. Entities are experiencing conditions often associated with a general economic downturn.
As the accounting profession navigates this uncertainty, it is of utmost significance for CAs to be careful and sure of their professional risks and obligations.
How an insurance broker can help
Dasgupta says that this uncertainty can be managed through expert and tailored advice from an insurance broker. A broker is there not just to find the best available price for the client, but to make sure the insurance cover they have is appropriate. They can also adequately address all relevant potential risks.
Engaging with a broker can help the client to navigate a complex sector.
According to a September 2020 Deloitte study, “The economic value of insurance broking”, on average, brokers estimate that they save clients 2.5 hours during the claims process, with 41% of SME clients agreeing that their claims process would have been ‘much harder’ without the support of a broker.1
Time to reset
As we head into the new financial year, it’s a good time for CAs to reset and rethink their insurance cover. It’s also a good time to revisit professional insurances to make sure they are appropriate; and CAs can reach out to Aon as a trusted resource to help.
Aon has deep experience in providing professional insurance to CAs, and its team of brokers has the knowledge and expertise to help CAs make more confident decisions on insuring their practices.
The team at Aon is there to help CAs tailor and access the right insurance, balancing cover and other features at the best price for the best outcome.
Find out more:
Aon Australia is a partner of the CA ANZ Member Benefits Program. To find out more about the offers available to CA ANZ Members please visit aon.com.au/ca
Email Aon at [email protected]
Phone 1300 836 028
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