November 1999
Board Endorses Camico
Professional Liability Insurance Latest Society Benefit
By Louis C. Grassi, CPA
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The NYSSCPA board of directors approved the recommendations of the Executive Committee and the Task Force on Professional Liability Insurance at the board's October 29 meeting to endorse Camico as provider of the liability insurance offered to Society members. This latest addition to the member insurance program caps years of research and discussion by Society members and staff.
The Society previously had sponsored a malpractice insurance plan from 1970 until 1985. When the market tightened in 1985, however, the sponsored insurance carrier fled the market and left many CPAs without coverage. Much has since happened in the insurance market to impact the decision to endorse a professional liability insurance plan, which represents a change in NYSSCPA policy.
The Society believes that endorsing a plan will foster a competitive market for liability insurance and help maintain price stability. Due to the current overly competitive market, if properly structured, sponsorship will not negatively affect the marketplace.
After numerous meetings, the task force, with the support of the Executive Committee, created and circulated a request for proposal and received eight responses from insurance companies and administrators. With the help of Society outside legal counsel Dan Goldwasser, who has a strong background in professional liability matters, and Al Singer, an insurance specialist, the task force narrowed the firms from eight to two. The two finalists met with the task force on September 27, and, at the suggestion of President Alan E. Weiner, the Society taped the interviews and deliberations to distribute copies to Executive Committee members to help them make a more informed decision.
Both companies gave strong presentations. Upon the conclusion, the task force deliberated at length before its vote to recommend Camico to the Executive Committee as the Society-sponsored carrier of professional liability insurance.
Camico Mutual Insurance Co. was founded by CPAs for CPAs in 1986 in response to a critical need in the profession during the insurance crisis in the mid-1980s, which left many CPAs facing escalating premium costs, widespread instability, and a turbulent market. Camico has fulfilled its original charter to provide stable, comprehensive professional liability insurance programs. The Society stressed to Camico the importance of loss prevention and obtained Camico's commitment to help members achieve a higher level of loss prevention.
"Camico's philosophy, which features innovative loss prevention programs, a personalized approach to underwriting, and a provocative--not reactive--stance toward claims management, has made them a leader in their field," NYSSCPA Executive Director Louis Grumet said. "As we move into the new millennium, the Society is offering new value-added member services and continuing to work vigorously on the behalf of its members to let their clients, companies, and the financial community at large know that they are truly 'trusted professionals.'"
Watch http://www.nysscpa.org and The Trusted Professional for more information on the new professional liability insurance program and for news on other member benefits and services. *
Louis C. Grassi is a member of the NYSSCPA board of directors and the Audit Committee and chair of the Task Force on Professional Liability. He is a partner at Grassi and Co. CPAs PC in Lake Success, N.Y.
