Important Information about Claims-Made Policies and Pricing

[Pages:1]How

Claims-Made Coverage

Works

With a claims-made policy, premiums are discounted the first year because you are covered for a shorter period of time and therefore carry less risk. Premiums "step up" in the second year to cover two years' worth of work and level off in the third year. The longer you are covered, the greater chance there is of a claim and the greater the overall risk becomes.

Premium Discount

Likelihood of Claim

YEAR 1

12 Months Covered

YEAR 2

24 Months Covered

YEAR 3

36 Months Covered

This increase in premium is standard for how a claims-made policy works.

BUT you can help to offset these premium increases by taking steps to improve the quality of your firm's risk management such as:

Use Engagement Letters

5% Save

up to

Attend an AICPA Insurance Program Risk Management Training

10% Save

up to

Obtain a Positive Peer Review

5% Save

up to

Participate in AICPA Audit Quality Centers and PCPS Membership

16.5% Save

up to

Be Claims-Free

5% Save

up to

The AICPA Professional Liability Program will reduce your premium for participation in any of the above risk management activities.* And better yet, the more you do, the more you'll save! If you think you might

qualify for any of the above risk control savings, let us know!

Call 1.800.221.3023

to speak with an AICPA Risk Advisor BEFORE your next renewal so we can update your premium

*Premium credits may not be available in all states. Aon Insurance Services is the brand name for the brokerage and program administration operations of Affinity Insurance Services, Inc. (TX 13695), (AR 100106022); in CA and MN, AIS Affinity Insurance Agency, Inc. (CA 0795465); in OK, AIS Affinity Insurance Services Inc.; in CA, Aon Affinity Insurance Services, Inc. (CA 0G94493), Aon Direct Insurance Administrator and Berkely Insurance Agency; and in NY, AIS Affinity Insurance Agency. One or more of the CNA companies provide the products and/or services described. The information is intended to present a general overview for illustrative purposes only. It is not intended to constitute a binding contract. Please remember that only the relevant insurance policy can provide the actual terms, coverages, amounts, conditions and exclusions for an insured. All products and services may not be available in all states and may be subject to change without notice. "CNA" is a registered trademark of CNA Financial Corporation. Certain CNA Financial Corporation subsidiaries use the "CNA" trademark in connection with insurance underwriting and claims activities. Copyright ? 2021 CNA. All rights reserved. E-13578-719

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