Hauser Insurance enlightens business owners on tax liability insurance

How does Hauser Insurance calculate their policy premiums?

A typical Hauser liability policy premium is a product of two integrated factors. These are the desired coverage amount and the underwriter’s rate on line (ROL). A ROL defines the amount the underwriter must commit to secure a reinsurance coverage.

Therefore, a lower ROL indicates a lower perceived risk of the insured tax position.

For recurrent insured risks, a ROL estimate can be provided by the insurance broker to ascertain the final cost of the policy.

What are the major tenets of tax liability insurance?

There are two basic tenets as observed by Hauser Insurancethe final adjudication concept and retention for contest costs.

The final adjudication principle technically delays the process of receiving your business’s insurance proceeds. It demands adjudication of any tax assessments related to your insurance proceeds by a court of appeal.

However, to settle the case earlier than the adjudication, Hauser Insurance will issue a consent to the court to keep your business from running into a cash crunch.

According to retention for contest costs principle, the insured must honor part of their contest costs. However, they are excluded from paying any tax position-related penalties, interests, or tax liability.

It is also possible to have an insurance policy that requires retention of extra loss types.

What is excluded in the Hauser liability policy?

The four types of losses excluded from this policy coverage include those arising from:

  • Non-consented alterations to transaction documents regarding the insured’s tax position
  • Changes in applicable insurance laws after effecting the coverage
  • Mismatched insured’s filed tax returns with their tax position
  • Fraud or misrepresentation of the insured

Hauser Insurance is a privately owned insurance company headquartered in Cincinnati, Ohio.

The leading firm provides a huge array of insurance services including diverse insurance solutions, risk management, and employee benefits services to all types of business.

Other areas of expertise the insurance firm focuses on include insurance brokerage and transactional support services.

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