Conflicts of interest may arise during the course of conducting an accounting practice. In the event that a conflict does arise there is a potential for a professional indemnity claim as well a possible breach of a code of ethics. How to Avoid Conflicts The Accounting Professional and Ethical Standards Board (APESB) Code of Ethics…

Professional liabilities are covered under a “claims made” policy wording. “Claims made”, means that providing a policy is in force at the time a claim is made against the insured or when the insured becomes aware that a claim may be made, then subject to the policy conditions, cover is provided, no matter when the…

When should a possible claim be notified in order to comply with the requirements of your professional indemnity policy? In every Professional Indemnity proposal form, the following question or something similar, is asked: “Are any of the partners/directors after enquiry, aware of any circumstances which are likely to give rise to claims against the firm…

Background A Division 7A dividend is an amount deemed by the Australian Tax Office (ATO) to be assessable income of a shareholder of a private company that attempts to make a tax-free distribution of profits to the shareholder, or the shareholder’s associate. Division 7A may apply to loans, payments and debts forgiven on or after…

The Abacus PI policy wording underwritten by Lloyds of London, includes the following important benefits: Unlimited Automatic Reinstatement The Limit of Indemnity stated in the policy is the maximum insurers will pay for any one claim and in the aggregate in any one period of insurance. Any claim(s) against the policy will reduce/exhaust the limit…