Accountant insurance is a type of business insurance package designed for professionals and firms in the accounting business. These insurance plans provide accountants’ professional liability insurance as well as other types of coverage to help protect them against liability claims, losses, and damages arising from unexpected events. 

While you may have to worry less about physical risks than other industries, there are still many problems that could pop up throughout the course of your workday. For example, say you are filing taxes for a client, but you make a mistake. The client gets audited, and you land in a pool of hot water. The client may decide to sue you for financial damages. With the right accountant professional liability insurance, you will have the financial funds needed to settle any claims and cover legal expenses relating to it. 

Another issue that could arise is if you miscalculate a client's annual revenue, suggesting they made more than they actually did. This could lead to financial losses down the line, and give the client grounds to sue you. Without the right accountant insurance, either of these situations could lead to serious financial expenses that could ultimately force you out of business if you aren't insured. 

Accountant insurance protects you and your business from a range of professional risks and perils that may occur during your daily operations. Not only should you be insured for professional liability, but you should also consider protecting your commercial office space against a cyber attack, and more. Not to mention, if you have employees, it's up to you to protect them as well. While there are coverages you can purchase to help protect your employees' interests, it's also important to note that workers' compensation insurance is actually provided by the government. 

Likewise, if you work from home, consider insuring your office space. While a house fire may be covered under your home insurance policy, replacing office furniture and business content may not be, depending on the policy. Since policies vary from insurer to insurer, it's best to have your Morison Insurance broker walk you through the specifics of your policy, so you can make sure there are no gaps and that you're adequately covered. 

Any individual working as a public accountant should have the necessary insurance. In fact, many firms require accountants to have, at a minimum, professional liability insurance, as mandated by both CPA Ontario and CPA Canada. While we'll dive into this type of insurance further momentarily, it essentially covers you in case you're accused of losing a client's money due to your professional services. Ensure you protect yourself and your employees with the best accountants' insurance policy tailored to your needs.  

CPA firms and individuals falling into the following categories need accountant insurance: 

• Chartered accountants 
• Certified general accountants 
• Chartered professional accountants 
• Bookkeepers 
• Tax preparers 

While you may be prepared to purchase, at minimum, accountants’ professional liability insurance, there is a range of other coverages available to accounting professionals that will offer further peace of mind. Remember, in the event of an accident or disaster that destroys your office or where you're facing a lawsuit, the expenses can be incredibly high. Having to pay for said expenses out-of-pocket is a stress most savvy business owners will choose to avoid. 

No matter the size of your company, accountant insurance is essential for protecting you, your employees, and your assets. At Morison Insurance, we'll help you protect your company with an insurance policy that works for you. Each of our licensed, qualified brokers will shop around for the best policy possible, ensuring you can breathe easy knowing you're properly covered with the right business insurance for accountants. 

Technically, outside of industry and legally mandated coverage, such as auto insurance and accountants’ professional liability insurance, accountants and accounting professionals are not required to have insurance. That said, just about every professional will tell you that it’s a bad idea to go without proper accounting insurance. 

Not only do most firms require you to have coverage if you work for them, but if you don't have insurance and make a mistake while working on one of your clients' finances, you could wind up in serious legal trouble. Without insurance, being forced to pay out-of-pocket for these legal costs can be financially devastating. Not to mention, you should also protect your office, assets and employees from the worst-case scenario with proper insurance. 

While business insurance for accountants is not legally mandated by the government (with the exception of commercial auto insurance, should it be necessary), that doesn't mean it's not required at all. In most cases, accountants are required by their professional association, such as CPA Ontario, to have accountant professional liability insurance, and the association likely has rules about how much coverage is necessary for professional liability insurance. CPA professionals should consult with their association to make sure the liability coverage they purchase for their accountant insurance package is compliant with the association's requirements. 

Finally, it's important to understand that many clients will simply refuse to work with an accounting professional who does not have the right accountants' insurance and will require you to provide proof of coverage in the form of a certificate of insurance. You will likely also be required to provide proof of property coverage before you can rent or lease a commercial space or borrow money, as without showing them an insurance certificate, potential lessors and money lenders may believe you are too risky to deal with. 

The answer to this depends on your work and business practices. If you are a member of a public accounting firm, the firm is responsible for ensuring you are covered with accountant insurance in Ontario, as well as providing proof of insurance to the applicable regulatory bodies. But if you are not part of a registered firm and offer accounting services to the public, then you are responsible for ensuring that you have insurance. Accountant insurance, regardless of whether you are part of a firm or are a stand-alone CPA practitioner, must always include accountants professional liability coverage, but other forms of coverage will be dependent on your business needs. Speak to your Morison Insurance broker if you have concerns about your coverage. 

Like with any insurance policy, there is no set rate for your unique accountants’ insurance. There are numerous factors that influence what the final cost will be, including, of course, what additional coverages and floaters you choose to add onto your policy. Other influencing factors include: 

• Whether you were insured in the past 
• The years of experience you possess 
• Your past claims history 
• The size of your business 
• How much revenue you expect to make in the upcoming year 
• Your business location 
• The type of services you provide 
• Deductible amount 
• And more 

It’s important to be as detailed as possible when describing your business and discussing your need for accountant insurance. Ontario brokers at Morison Insurance will be able to take that information to find you policy options with not only the best coverage, but also at a great rate. We’ll also help you find ways to save on your accountant insurance premiums, so that getting insurance won’t break the bank. 

When you choose to purchase insurance through Morison Insurance, we ensure the process goes as smoothly as possible. After all, we're taking on the work of shopping around for insurance rates—and we relish helping our clients find the absolute best insurance coverage for their needs. We want our clients to feel as comfortable and prepared as possible throughout the entire process. To that end, we believe preparation is key. While applying for an accountant insurance quote, your Morison Insurance broker is going to ask you a series of questions. By knowing your answers in advance, you can speed up the application process.  

A few questions your accountant insurance broker may ask include: 

• Is this your full-time or part-time job? 
• Do you have insurance now? 
• Have you been canceled/declined/non-renewed in the past five years? 
• Have you had any claims in the past five years? 
• What are your gross annual revenues? 

While this is a brief snapshot of the questions we’ll ask, this gives you a better idea of the information you need to prepare when you sit down with our brokers to discuss your accounting insurance needs. 

In addition to knowing what questions your insurance broker will ask in advance, there are also a few proverbial ducks in a row you should get organized before applying for insurance. This will likewise make the process much smoother. Be sure to gather the following information: 

• Annual revenue estimates 
• Payroll estimates 
• Information on any previous insurance claims 

Malpractice insurance is another term for professional liability insurance, also known as errors and omissions insurance. This term refers to the type of coverage that will offer financial protection should you wind up facing a lawsuit due to allegations of negligence, malpractice, poor advice and failure to deliver services as promised (breach of contract). As explained above, accountant professional liability insurance is a mandatory form of insurance that all accounting professionals must carry. Speak to your Morison Insurance broker to ensure you have the liability coverage you need in your accountant insurance policy. 

CPA Ontario does set minimum limits for accountants' professional liability insurance coverage, based on how many people are part of your accounting practice. That's because the more people working for a firm, the larger the risk of a professional mistake. According to CPA Ontario, these liability limits are: 

• $1 million for one member firm 
• $1.5 million for a firm with two or three members 
• $2 million for a firm with four or more members 

Additionally, the maximum deductible for this coverage must be reasonable with regard to the firm’s revenue, and cannot exceed more than 50% of the required minimum limit. Firms also must set aside cash assets or equivalents that are at least of equal value to the deductible amount specified in the accountants’ professional liability insurance documents. 

The firm or accountant must also maintain their professional liability coverage for at least six years following a member stopping public accounting practices or a firm’s merger, dissolution, or withdrawal. For more information on their accountant insurance requirements, reach out to CPA Ontario.