Category: accountant insurance

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.

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.

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.