Proactively Managing Fee and Collection Issues

An effective way to avoid having a collection problem in the first place is to communicate with the client regarding your billing and collection policies, and to include stop-work or disengagement provisions, or both, in your engagement letter. Such provisions can then be enforced if the client doesn't pay you in accordance with the engagement letter.

What’s the Right Policy Limit for Your Firm?

One of the most frequent questions asked by CAMICO policyholders is, “What should our policy limit be?” This is not an easy question to answer, which may explain why it is asked so often.

The answer to the question requires a careful consideration of a variety of factors that run the gamut from the relatively well defined, such as regulatory requirements, to the more subjective, such as the "sleep well at night" factor.

Preparing for the Next Recession

Economic conditions historically have a significant impact on CPA professional liability claims. When the economy is doing well, and businesses are relatively flush with money, people are less likely to notice funds missing. Fraud therefore tends to flourish and go undetected in good times.

When the economy takes a downturn, capital starts to become more precious, people look more closely at accounts, and missing funds are more often detected. In general, there are more claims and larger claims reported in an economic downturn.

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Latest Articles

  • 02 Oct

    Navigating Complex Conflicts of Interest

    While potential "conflict of interest" issues often arise because of married clients getting a divorce, other types of "splits" that may involve a dispute among shareholders, LLC members, partners and beneficiaries also present potential conflict-of-interest situations. The latter scenario... read more

  • 19 Aug

    Do You Believe You Will Never Be Sued?

    Some CPAs believe that they will never be sued and therefore believe they do not need professional liability or other forms of insurance. The reasons for this position vary, but some common ones include, "I don't make mistakes," "All of my clients are friends," or "I do tax work only." The... read more

  • 27 Jul

    Exclusive Policyholder Benefits

    Risk management services and resources to help you with today's practice challenges

    CAMICO knows that insurance alone is not a solution for reducing risks. That's why you have access to CAMICO’s proven approaches that have helped numerous CPA firms manage risk and avoid claims.... read more