Accountant Insurance

If you offer accounting advice or services, get a custom professional liability insurance policy to protect yourself against claims related to your profession.

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Trusted by over 250,000 Canadian small business owners!

Save up to 35% on your insurance

Instant price and coverage in just a few clicks!

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Partnerships with over 50 leading Canadian insurance providers

Insurance for accountants

As an accountant, you have dedicated your career to helping others identify and reduce their financial risk exposure. However, there is room for error, like anyone providing professional services.

Whether you own a large firm or offer accounting services on the side, carrying accounting professional liability insurance is critical to your success. At Zensurance, our mission is to make insurance as accessible as possible. We wrote this guide to help you navigate getting liability insurance for accountants.

What is accountant insurance?

Accountant professional liability insurance provides comprehensive protection against the specific risks of offering accounting services, including negligence and malpractice, and meets all CPA requirements.

This policy package is specially designed for people whose duties include, but are not limited to:

Tax Computations, Filing, and Planning
Financial Consulting and Planning
Audit and Review Engagements

Our specialized team of brokers will always ensure you receive the most comprehensive coverage for your business.

What does it cover?

In Canada, individuals offering accounting services to the public are required by the Chartered Professional Accountants of Canada (CPA Canada) to carry professional liability insurance.

Professional Liability Insurance, also known as Errors & Omissions (E&O) Insurance or Malpractice Insurance, protects accounting professionals against claims or lawsuits alleging financial loss due to a service you provided, professional negligence, misconduct, or failure to deliver services as promised.

Claims and lawsuits covered by Professional Liability Insurance may include:

- Alleged or actual errors;
- Breach of professional duty; and,
- Misleading or misinterpreted financial statements.

Professional Liability Insurance could cover your legal defence costs, monetary judgments, and settlement fees up to your policy limit. It does not cover deliberate misrepresentation or criminal acts.

Additional coverage is recommended for accountants who run a firm or offer their services to multiple firms. Comprehensive coverage for accounting professionals typically includes the following coverage:

Commercial General Liability (CGL) Insurance protects against common risks you can expect to encounter during day-to-day business operations, including third-party property damage or bodily injuries, such as a slip-and-fall.

Cyber Liability Insurance is a critical coverage for anyone accountants storing client information or confidential data. It covers costs associated with electronic incidents involving your technology systems and customer data, such as notification and restoration fees.

Coverage will vary based on several factors, such as the services you provide, experience, and training.

How much does accountant insurance cost?

The cost of professional liability insurance for accountants will vary based on several factors, but generally, accountants can anticipate premiums starting at $700 per year with a $1M limit.

Individuals who only offer bookkeeping services can expect to pay less, with premiums starting from $300 a year.

When you complete our online application, we will ask some questions to understand your needs better and find the perfect coverage for your business. The following factors are taken into consideration when determining the best policy options for you:

Training and Experience
Annual and Projected Revenue
Services Provided
Location

We’ve partnered with over fifty insurance providers to offer you different options that suit your business needs at the best price.

Do accountants need insurance?

CPA Canada advises any independent or firm providing accounting services to protect their business and their clients with Professional Liability Insurance. As a CPA, you may be held liable for advice or services that result in any form of damage or don’t yield the promised results. Without the right insurance coverage, your accounting practice could suffer severely due to costly lawsuits from unhappy clients.

We’ve insured more than 1,000 accounting professionals. Some of our clients include:

Chartered Accountants
Certified General Accountants
Chartered Professional Accountants
Bookkeepers
Tax Preparers

Getting insured is quick and easy!

Complete our 5-minute online application for a free accountant professional liability insurance quote.

Get a Free Quote

Common claims scenarios

Problem: A hacker stole electronic data relating to your clients from your systems, and their financial and personal information is compromised.

Outcome: Your Cyber Liability Insurance may cover the cost to retrieve your client’s sensitive information.

Problem: You are filing tax returns for a client, but due to an error you made, the CRA conducts an audit. The client decides to sue you for negligence.

Outcome: Your Professional Liability Insurance may cover the legal defence cost associated with the lawsuit.

Woman counting her budget, hands with calculator

Problem: You are reporting on a client’s financial documents, but due to an error, you overstated the profits, and the client ends up overspending in the next quarter.

Outcome: The client sues you for negligence, in which your Errors and Omissions Insurance may cover the legal cost associated with the claim.

Frequently asked questions

What are the minimum Professional Liability limits that accountants must have in their policy?Zensurance

What are the minimum Professional Liability limits that accountants must have in their policy?

As determined by Chartered Professional Accountants (CPA) Canada, the minimum coverage amount per claim depends on the number of accountants in a firm. For one-member firms, the minimum limit is $1 million. For firms with two or three members, the minimum limit is $1.5 million. For firms with four members or more, the minimum limit is $2 million.

Is Professional Liability Insurance mandatory for accountants?Zensurance

Is Professional Liability Insurance mandatory for accountants?

According to Chartered Professional Accountants (CPA) Canada, all accounting firms (whether a one-person operation or a group operation) that provide accounting services to the public should insure their business with Professional Liability Insurance. Check the CPA branch website of your province to find out about other mandatory laws that apply to accountants and bookkeepers in your province.

Is Cyber Liability coverage included in my Errors and Omissions policy?Zensurance

Is Cyber Liability coverage included in my Errors and Omissions policy?

No, Errors and Omissions (E&O) Insurance for accountants may only cover mistakes and missed deadlines due to negligence in the accountant’s services that lead to financial loss for clients. If the accountant’s computer network is hacked, E&O will not cover the cost of damages that result from the personal and financial information of clients being compromised. To cover third-party damages due to a breach of cybersecurity, accountants may consider adding Cyber Liability coverage to their policy.