liability insurance

[gman]

Recieved my accountants liablility policy today and it states that claims made after policy expires will not be covered even if alleged error occurred while the policy was in force.

What do most of you have for liability insurance and is this the type of policy you would go with.--

[Burke]

Most of these liability policies are "claims made" policies. That means coverage is provided only if it is in effect when the claim is made, not when the alleged malfeasance occured or what tax year it applies to. So that forces you to continue to pay the premiums for 3 years after you have stopped tax preparation work to be secure that you have yourself protected. I think they ought to be outlawed myself, but that's the real world and has been ever since I can remember. Same goes for parts of the coverage you might drop -- for instance -- bookkeeping, which you may no longer do, even if you keep the overall policy to cover tax preparation.

[JON]

What do you think

the policy should say. You probably want to "buy your tail" when you retire, that will hold for future occurance based on past work. Maybe after the election all insurance will be subsidized by DC so we will not have to pay for the coverage. I like this possibility that someone else will pay for me. I think I could get use to that.