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 insurance for accountants.
What is accountant insurance?
Our accountant 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.
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 defense 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.
Who needs it?
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:
How much does it 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
We’ve partnered with over fifty insurance providers to offer you different options that suit your business needs at the best price.
Common claims scenarios
Frequently asked questions