Professional Liability/Errors & Omissions Overview

The Legacy CGA Professional Liability/E&O Insurance Program administered by Aon Reed Stenhouse Inc. provides insurance and risk management services for your members.

The Professional Liability/E&O Program underwritten by ENCON Group, Inc. (ENCON) provides the following core coverages under the policy:

• Limits of Liability up to $2,000,000 per claim
• Civil Penalties coverage is included with a $100,000 sub-limit per claim and in the aggregate for penalties levied against the insured pursuant to section 163.2 of the Income Tax Act of Canada.
• Automatic Extended Reporting Period up to $1,000,000 per occurrence with a $3,000,000 aggregate for claims resulting from the insured’s services rendered prior to the insured; retiring, becoming permanently disabled or deceased. This remains in effect as long as the program is insured with ENCON.
• $1,000 deductible including defense costs and indemnity payments.
• Severability of interest clause included.
• Coverage extended to unlicensed practitioners while performing insured services under the supervision of a licensed certified general accountant.
• Coverage provided only to claims which give rise to suits or judicial proceedings first brought against the insured within Canada or the United States of America.

The insurer annual base premium and the CGA Deductible Fund contribution are payable respectively to two parties, namely, the Professional Liability plan insurer on risk and the Certified General Accountants Association of Canada. Following binding of coverage, amounts retained by each party are declared in the respective certificate of insurance issued to individual participants of the professional liability plan. The CGA Group Deductible Fund Contribution is retained in a trust that is maintained by CGA Canada to fund, for each claim made under the policy, the difference between each certificate holder’s individual policy deductible and the first $100,000, until the annual aggregate deductible is reached for claims made during the master policy period. The insurer annual base premium is retained by the CGA Professional Liability plan insurer to fund claims over and above $100,000 each claim and over and above the plan annual aggregate deductible. The Trust is fully funded by the deductible fund contributions of certificate holders and no further obligation to fund claims is required beyond the individual policy deductible declared in the certificate of insurance. For more information about the CGA Deductible Fund, please contact CGA Canada.