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Frequently Asked Questions & Answers

Who is a Legacy CGA?

A Legacy CGA is an accountant who held the designation or CGA prior to the merger of the accounting designations across Canada and were registered in Public Practice and insured through the Aon CGA Professional Liability Program. They are now identified as either CGA or CPA, CGA.

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What coverages are provided under the Legacy CGA Professional Liability/E&O Insurance Program?

The following coverages are available under the Legacy CGA Professional Liability/E&O Insurance Program:

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How do I enroll in the Legacy CGA Professional Liability/E&O Insurance Program?

Submit your application online by clicking on Apply for Coverage and follow the steps. Upon successful payment you will receive confirmation which allows you to print your confirmation of insurance.

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Where can I find the Legacy CGA Professional Liability/E&O Insurance Program application?

Click here to download an application or you can complete the online application.

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Once I enroll how long will it take to receive my Proof of Insurance?

In most cases, you will receive your proof of insurance immediately. Should further clarification be required, you will be contacted by an Aon representative within 72 hours.

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What is covered by Professional Liability(E&O) Policy provided under the Legacy CGA Insurance Program?

The liability imposed by law on you as a result of your professional services, including opinions and the giving of advice, rendered or that should have been rendered by you coming within the scope of the professional activities in relation with the profession of accounting as performed by a Legacy Certified General Accountant and performed in accordance with the legislation regulating the practice of such activities including volunteer services and extended to include provision for Eldercare Services.

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Do I need to be registered with my Provincial CGA or CPA Association for public practice in order to qualify for coverage under the Professional Liability (E&O) policy?

Yes, it is a condition of the Professional Liability/E&O policy that Legacy CGA members be registered with their provincial CGA or CPA Association for public practice in order for coverage under the policy to apply. If you are unsure whether you qualify/are registered for public practice with your Provincial CGA or CPA Association, please contact Aon for assistance.

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What is a Claims-Made and Reported Policy?

Professional Liability/E&O policies are written on a “Claims-Made and Reported Basis” basis. That is, the policy in force at the time a 'claim' is made and reported (as opposed to when the event occurred) is the policy that will provide coverage. As a condition of an E&O policy, it is imperative that you report actual claims or situations which may give rise to a claim to the Insurer as soon as possible.

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What is Prior Acts?

Prior Acts refers to your professional activities prior to binding coverage through a policy. The Legacy CGA Professional Liability/E&O Insurance Program allows for full Prior Acts coverage providing there has been no gap in insurance coverage. The Legacy CGA's Professional Liability/E&O Insurance Program does not have a retroactive date.

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What is Prior Acts Coverage?

Prior Acts Coverage extends coverage on a Professional Liability/E&O claims made policy for claims made against the insured for acts performed prior to the inception date of the policy.

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What is a Retroactive Date?

Some Insurers will impose a retroactive date on the policy. The retroactive date reflects the earliest date for which an Insurer will provide coverage. Any claims made for activities conducted prior to this date would not be covered. This is the opposite of Prior Acts coverage. The Legacy CGA's Professional Liability (E&O) policy does not have a retroactive date.

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Can I backdate my requested effective date so I don't have a gap in coverage?

Aon is not authorized to backdate coverage. We recommend that you forward applications for coverage to Aon PRIOR to the expiration date of your current policy to ensure continuity of coverage.

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What does the Limit of Liability/Aggregate Limit of Liability mean?

The Limit of Liability refers to the maximum an Insurer will pay for any single claim. The Aggregate Limit of Liability refers to the maximum an Insurer will pay during a policy period.

Subject to a claim being insurable, as long as the single claim limit does not exceed your Limit of Liability and the maximum of all claims does not exceed your Aggregate Limit of Liability, you would have coverage. Should a single claim exceed your Limit of Liability, you would be liable for the uninsured difference.

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Can I increase my Limit of Liability as my business grows?

Yes, you may increase your Limit of Liability at any time during the term of the policy. In order to initiate the change you will need to sign an Increased Limits form and forward it to Aon. Upon receipt of the Declaration, your Limit of Liability will be increased and an additional premium charge will apply for this additional exposure.

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Can I decrease my Limit of Liability?

Decreasing your Limit of Liability should be exercised with caution. You may decrease your Limit of Liability at any time during the term of the policy; however, you need to understand that you are also decreasing the Limit of Liability for all of your Prior Acts as E&O policies are written on a "Claims-Made and Reported Basis" basis.

For example:

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I am taking a leave of absence (maternity/disability), can I cancel my E&O coverage until I am practicing again?

Your liability does not cease because you are taking leave of your position. You are still exposed to liabilities for business you conducted prior to your leave. As E&O policies are written on Claims-Made and Reported Basis basis, you must ensure the policy remains in force to protect you should a claim arise during your leave of absence.

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What is an Extended Reporting Period (ERP)?

An ERP extends the time period for which a claim can be reported. Terms of the ERP vary from one policy to the next. Liability does not cease because you are no longer practicing and as such an ERP is usually required in the following instances:

Please note that coverage under the ERP becomes null and void upon returning to practice.

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What is ERP Coverage?

The professional liability (E&O) policy wording contains an ERP provision in the event that an insured member dies, retires, becomes disabled or ceases to practice. The limit for the ERP is set at $1 million per loss and $3 million in the aggregate, regardless of what was carried before. The coverage is automatic and it is not construed to be a new policy but an extension of the current policy. Please note that coverage under the ERP becomes null and void upon returning to practice.

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What if I buy a book of business?

You may be assuming some liabilities when you purchase a book of business. You must be sure to complete your due diligence when taking over clientele (which may include individual review of files and/or seeking legal advice).

If you purchase a book of business, you should ensure that the previous owner of that book of business has obtained an Extended Reporting Period (ERP).

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What if I sell my book of business?

Once you become deregistered as a CGA or CPA in public practice, the policy automatically provides for Extended Reporting Period (ERP).

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How long do I have to keep my records?

Retention of Record requirements varies from province to province. Privacy laws also dictate the type of information a member can and cannot keep in their file. With regard to this issue, we suggest members obtain legal advice and/or check with local regulatory bodies for specific direction.

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What type of activities am I covered for through the Legacy CGA Professional Liability/E&O Insurance Program?

If you have any doubts as to any activities that fall outside the scope of practice as set by your Provincial Affiliate office, they should be communicated to your Aon Service Team.

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Which business class am I?

LLP: The provinces of Ontario and Alberta have permitted LLPs for lawyers. In BC, the Partnership Amendment Act, 2004 (Bill 35) permitted LLPs for lawyers and other professionals as well as to businesses

A limited liability partnership (LLP) has elements of partnerships and corporations. In an LLP, all partners have a form of limited liability, similar to that of the shareholders of a corporation. However, the partners have the right to manage the business directly. Unlike corporate shareholders who, have to elect a board of directors (which organizes itself); which then hires corporate officers who have the legal responsibility to manage the corporation in it's (the corporation's) best interest, as a "corporate" individual. There is also a different level of tax liability than in a corporation.

Sole Proprietorship: is a type of business entity which legally has no separate existence from its owner. The limitations of liability applicable to the corporation and limited liability partnerships do not apply to sole proprietors. All debts of the business are debts of the owner. It is a "sole" proprietor in the sense that the owner has no partners. A sole proprietorship means a person does business in his or her own name and there is only one owner. A sole proprietorship is not a corporation; it does not pay corporate taxes, but rather the person who organized the business pays personal income taxes on the profits made.

Partnership: is a type of business entity in which partners (owners) share with each other the profits or losses of the business undertaking in which all have invested. Depending on the partnership structure and the jurisdiction in which it operates, owners of a partnership may be exposed to greater personal liability than they would as shareholders of a corporation.

Corporation: is a legal entity (technically, a juristic person) which has a legal personality distinct from those of its members. The defining legal rights and obligations of a corporation consist of the capacities (i) to sue and to be sued, (ii) to have assets, (iii) to employ agents, (iv) to engage in contracts, and (v) to make by-laws governing its internal affairs. Other legal rights and obligations may be assigned to the corporation by governments or courts.

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How do we establish full-time or part-time classification?
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Who are Contracted Employees?

These are Legacy CGA's that are brought for a time limited period contract. They are either on a full-time basis or a part time basis (under $15,000 in billings).

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Who is a Loss Payee?

A loss payee is a party besides the insured that has an insurable interest in the property being insured through the policy (ie lending institution). In the event payment is made under the policy in relation to the insured risk, payment will be made to or in conjunction with that loss payee rather than to the insured beneficiary of the policy. Such clauses are common where the insured property is subject to a mortgage or other security interest and the mortgagee (ie. usually a bank) requires that the property be insured and that such a clause be included. Loosely translated, a loss payee is someone who will be paid if there is a loss.

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Who is a Mortgagee?

A mortgagee is a party who provides a loan secured upon the borrow’s property, usually the lender in a mortgagee agreement

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Who is an Additional Insured

An additional insured is a person or entity with an interest to be protected but who is not a named insured.

Example of who is an additional insured: If you lease a vehicle, as opposed to financing, you may be asked to add your leasing company as an Additional Insured. Technically, when you lease a vehicle, you do not own it outright. This also means that if you cause an accident and are sued the person suing you can come after not only YOU, but the leasing company as well. They can do this because the leasing company owns the car and provided it to you for use. Adding your leasing company as an additional insured means that, when it comes to that particular car, the leasing company has coverage under your policy for defense if there is a lawsuit.

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What is Predecessor Firm Coverage

The Predecessor Firm definition includes: Former names, firms, practices purchased or dissolved prior to inception date of the policy where the Insured as defined under item 6.(a) - is responsible for maintaining in force the professional liability insurance coverage. An example of the need for this coverage would be in the event that a Legacy CGA changes the name of their firm. It is necessary to make certain that the past insured operations under the prior firm name are covered in the event of an E&O. The intent of the endorsement is to provide coverage for those former names/firms directly in the wording, rather than having them each named on a certificate.

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Can I buy Corporate Identity Protection for my firm?

The Corporate Identity Protection coverage is automatically added to all Legacy CGA practitioners and firms that have purchased the one or two million dollar limit Professional Liability / Errors and Omissions coverage. Please refer to specific details under the CIP section of the website for limitations to coverage.

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Who is eligible to purchase Corporate Identity Protection?

Legacy CGA’s with annual revenues of $5,000,000 or less and that hold information on up to 1 million identities.

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How does the Corporate Identity Protection differ from other security and identity theft related products in the marketplace?

The Corporate Identity Protection provided through the Legacy CGA program offers coverage when personal identification in care and control of the insured is compromised, regardless of whether identity theft actually occurs, other products in the marketplace, offer employees of companies protection when their personal identity is compromised, but do not offer the entity any coverage for these perils.

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What is a Group Single Aggregate Cap/Aggregate Limit of Insurance?

The Group Single Aggregate Cap/Aggregate Limit of Insurance is the total limit the policy will pay out in a policy period for all insureds on the program.

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What are the construction types?
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What is a claim and when should it be reported?

A claim is a verbal or a written demand for compensation arising from an alleged error, omission or negligent act of the member. Claims or potential incidents which may give rise to a claim should be immediately reported to your insurance broker/Insurer.

When in doubt disclose to your Broker.

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How are Directors protected from personal liability?

Good corporate governance
Corporate by-laws
Financially strong company that can back any corporate indemnification
D & O Insurance Policy

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What is Directors and Officers Liability Insurance?

Protects Directors and Officers against liabilities they incur in carrying out their duties/functions in managing the affairs of the organization. Coverage applies when indemnification is granted by the organization and more importantly, when it is not.

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Who Does the D & O Policy cover?

Insured Organization: Corporate reimbursement for indemnification to Insured Persons. Entity coverage may be available for certain claims.

Insured Persons: Past, present and future directors and officers of the insured organization and its subsidiaries. Employees are often covered on a co-defendant basis

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What does a Directors and Officers claim mean?

A written demand against an Insured for monetary or non-monetary relief.

A Civil, arbitration, administrative, regulatory, or mediation proceeding against any Insured commenced by:

A criminal investigation or proceeding against any Insured Individual commenced by:

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What is Cyber Extortion?

Cyber Extortion is a crime involving an attack or threat of attack against an enterprise, coupled with a demand for money to avert or stop the attack.

Cyber Extortion can take many forms. Cyber criminals have developed ransomware that can be used to encrypt the victim’s data. The attacker then demands money for the decryption key.

As the number of enterprises that rely on the Internet for their business has increased, opportunities for cyber extortionists have also increased.

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What would a claim definition be under Cyber Extortion?

A loss would mean:

Monies paid by an Insured with the Insurer’s prior written consent to terminate or end a Security Threat that would otherwise result in harm to an Insured and

The costs to conduct an investigation to determine the cause of a Security Threat.

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What is a Security Threat?

A Security Threat means any threat or connected series of threats to commit an intentional attack against a Computer System for the purpose of demanding money, securities or other tangible or intangible property of value from an Insured.

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What is a Satellite Office?

An office that is part of a larger organization and is some distance away from the main office that controls it.

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What are the choices if I add a satellite office?

$5,000 Contents for $103.00 or $7,500 Contents for $155.00. This coverage is added to an existing Office Package certificate and is not stand alone coverage. There is no limit on the number of Satellite Offices a CGA firm is allowed.

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Can I increase the coverage of a satellite office?

No, you would need to purchase the full Office Package through the CGA group program.

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To whom do I report a claim?

Please report all Professional Liability, Office Package and Directors & Officers Liability claims to:

Mike Priddle at Priddle Gibbs Adjusters by calling 1-780-489-3310, emailing mike.priddle@priddlegibbs.com, by fax at 1-780-489-3320 or by mail to:

17313-107 Avenue
Edmonton, AB
T5E 1E5

Please report all Corporate Identity Protection claims to:

Berkley Canada
145 Kings Street West Suite 1000
Toronto, Ontario M5H 1J8
Phone:416-594-4797
Toll Free Phone: 1-877-304-1178
Fax: 416-304-4108
E-mail: claims@berkleycanada.com

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