Society Pursues Liability Insurance

By Ed Parker

The NYSSCPA Executive Committee recently voted to pursue a professional liability insurance plan to offer its members. The decision to explore a state-sponsored professional liability program came after months of work by the Task Force on Professional Liability Insurance, chaired by Louis Grassi (Nassau). The task force played an instrumental role throughout the process as it hashed out the details of what it wanted to include in the program. It adopted a policy fostering competition, and will invite several carriers to provide proposals.

"Liability insurance is an important member service for the Society to offer," Grassi said. "Once in place, it will provide the liability protection members need at an affordable price."

The Society plans to form a strategic alliance with the insurer it chooses that will provide two important criteria to members in the professional liability plan. First, the alliance will establish and maintain a practice risk management/loss prevention program to reduce claims against insureds. Second, it will keep premiums competitive and, at the same time, develop policy terms that are acceptable to the Society.

From 1970 until 1985, the Society sponsored a malpractice insurance plan. When the market tightened in 1985, many CPAs found themselves without coverage because the carrier stopped providing professional liability insurance. Since then, the insurance market has rebounded. Ten companies now offer accountant's liability insurance.