G. A. MacDonald Associates, Inc.
Financial Management & Insurance Services
2200 Lake Avenue, Suite 120, Fort Wayne, IN 46805
Phone: (260) 422-5377 Fax: (260) 423-6780 Tax
Preparers Professional Liability Insurance
Errors and Omissions Coverage
- States of Indiana &
Michigan -
Protection
When You Need It Most...
It's that time of year. Your clients
wait until the last minute...and expect you to meet the IRS
deadline. There aren't enough hours in the day. And when the
pressure's on, it's easy to make mistakes. Thousands
of tax preparers are insured by CNA Surety. More and more, tax
preparers are finding that they need protection against legal
action. Even in an unjustified case, the legal fees incurred simply
to defend oneself can be staggering.
- An insured made an error in calculating
the beginning accounts receivable balance, which resulted in an
understatement of gross receipts, which was carried through to the
return. The state assessed a penalty of 20%. CNA Surety settled
the claim for over $2,500.
- Another insured filed a fourth quarter
sales tax return late, causing the state to assess a penalty of over
$2,000. The claim was paid under the terms of the insured's
policy.
- An insured's client was penalized by
the IRS, and interest was assessed when the insured incorrectly used
the cash method of accounting when the accrual method should have been
used. The claim was settled for over $1,500.
Because the tax
preparers in these examples were protected by professional liability (E & O)
insurance, their losses were covered. And CNA Surety was there to help pay for the damages and legal costs.
Our agency has chosen to represent CNA Surety as the exclusive provider for
tax preparers errors and
omissions coverage for our Indiana and Michigan clients:
- CNA Surety gives one-day service to all new
business. Everything is answered the day it is received.
- They write more bonds than any other company in the country.
- They have specialized in the bond business since 1900. They
are THE bond experts.
- They have experienced claim specialists for bonds and errors and
omissions insurance.
- They have an A.M. Best rating of A+, Superior.
- Covers claims against you and your clients up to the policy limit.
- Coverage of defense costs (subject to
policy provisions).
- Protection against errors and
omissions.
- Covers both your full-time and
part-time employees, even if they only work during tax season.
- $100 deductible
- Cost-effective coverage...as
little as $0.46 per day!
Can you afford a
lawsuit because you made an innocent mistake and were an easy target for
someone trying to recover losses? Tax Preparers' Errors and Omissions
Insurance safeguards you against costly and time-consuming lawsuits. Even
if the suit is not valid, you could still be faced with a legal bill for
defending yourself. If you aren't insured, you'll pay those defense
costs out of your own pocket, win or lose.
For a nominal premium, you can purchase a
policy with a limit which suits your needs. Protect yourself and those
who depend on you now.
Consider Tax Preparer E & O insurance to protect yourself against innocent
mistakes plus defense costs:
Policy
Limit
|
Annual
Premium
(Number of Employees) |
| Single/Aggregate |
1-3 |
4 |
5 |
6 |
7 |
8 |
Each
Additional |
| $10,000/$20,000 |
$182 |
226 |
270 |
314 |
358 |
402 |
+ 44 |
| $25,000/$50,000 |
$363 |
451 |
539 |
627 |
715 |
803 |
+ 88 |
| $50,000/$100,000 |
$556 |
686 |
817 |
947 |
1,078 |
1,209 |
+ 131 |
| $100,000/$200,000 |
$737 |
909 |
1,086 |
1,260 |
1,434 |
1,608 |
+ 174 |
Discounts:
| Enrolled Agent |
0.90 factor |
| Tax Preparer Association Member |
0.90 factor |
| Enrolled Agent and
Association Member |
0.85 factor |
Additional Coverage Options:
|
Limit: |
$10,000/$20,000 |
$25,000/$50,000 |
$50,000/$100,000 |
$100,000/$200,000 |
| 1 Year Retroactive |
(included) |
(included) |
(included) |
(included) |
| 2 Year Retroactive |
$125 |
$250 |
$375 |
$500 |
| Bookkeeping |
|
|
|
|
| 1-10% |
1.15 factor |
| 11-25% |
1.25 factor |
| 25% + |
1.33 factor |
| Extended Reporting |
0.50 factor |
This
page contains only a brief summary of coverage and policy
provisions. All statements herein are subject to the provisions,
exclusions, and conditions of the applicable policy. Coverages
afforded are only those for which application is made and for which a
premium charge is paid as indicated in the Declarations of the policy.
Indiana/Michigan
Residents
Open the Tax
Preparers' E & O application (Adobe®
.pdf format)
|
Download the free
Acrobat®
Reader
to view/complete/print the application from your computer
|
Residents of All Other States
We regret that at the present time, we are only accepting
applications from businesses in Indiana and Michigan. |
To locate a CNA Surety agent in your state,
please contact the company at:
(605) 336-0850
|
|
- Complete the application. This
can be typed from your computer if you open the file and place your
cursor in the "Name of Business" field of the
application. Complete this field and press the "Tab"
key to move from field to field through the rest of the application.
- Print the application. After
printing, please sign and date the application where indicated.
- Recheck your application for
accuracy. Incomplete applications may need to be returned for
completion prior to policy issuance.
- Calculate the premium payment
due (see How much does it cost?)
- Remit your application and payment (check
or money
order payable
to
G. A. MacDonald Associates).
Mail or Overnight your completed application to:
G. A. MacDonald Associates,
Inc.
Attention: E & O Department
2200 Lake Avenue, Suite 120
Fort Wayne, IN 46805
Phone: (260) 422-5377
Upon receipt, G.
A. MacDonald Associates will review your application for
completeness and submit it to CNA Surety. We process all
applications the same business day they are
received.
Disclaimer: Links
to other sites on this page are provided solely for the convenience of our
visitors. You should seek the advice of legal counsel to determine
whether these forms are appropriate for your needs and protect your
interests. No warranty is implied or provided by G. A. MacDonald
Associates, Inc.
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