Contractors Insurance is an award-winning and trusted commercial insurance brokerage firm based in Ontario. We are committed to providing personalized insurance programs for contractors, tradespeople, and professionals. Business professionals, like accountants, have been a valued part of our clientele for years.
So whether you are a self-employed accountant or part of a company, our customized accountant insurance will fully protect you from financial loss due to the risks associated with your industry. You can always count on our hands-on service for all your professional insurance needs.
Through the years, we have served numerous Ontario accountants. We have gathered a wealth of experience and industry recognition along the way. With Contractors Insurance, you can be sure that you’re in good hands!
What Is Accountant Insurance?
Accountant insurance refers to a type of insurance designed to protect accountants and accounting companies from financial loss due to various liabilities or unforeseen events. One of the vital aspects of this insurance program is accountant professional liability insurance.
According to CPA Ontario’s by-law, accountant professional liability insurance is a requirement for all individuals or firms providing accounting services to the public. For many independent accountants, they opt to purchase this type of insurance policy as their standalone insurance. However, if additional coverage is preferred (which is commonly opted for by accounting companies to protect the business), these can be cost-effectively bundled into our customized accountant insurance.
The following can be included in your accountant insurance:
Accountant Professional Liability Insurance
CPA’s, whether working independently or for an accounting firm, are in need of accountant professional liability insurance – also known as Errors and Omissions (E&O) insurance. No matter how careful and conscientious an accountant is, mistakes or perceived mistakes can still happen.
In such scenarios, you may need to defend yourself or your business from lawsuits filed by clients, your client’s business partners, mortgage companies, lengers, shareholders, and so on. This is where professional liability insurance steps in, covering legal/settlement fees for the following scenarios:
- Negligence and perceived negligence
- Errors and perceived errors
- Inaccurate advice
- Failing to follow industry standards or updated regulations
Commercial General Liability Insurance
Even though accounting, as a profession, is not known to be physically hazardous, accounting companies and firms are still advised to get commercial general liability insurance. You will never know when accidents can happen within your business premises or when an advertising material inadvertently causes injury to another business. This is where commercial general liability insurance saves the day.
This type of insurance covers medical costs, legal costs, and/or settlement costs associated with the following:
- Injuries to third-party individuals that occur within business premises
- Property damage to a third-party individual
- Although, this is an unlikely risk for accounting companies whose employees do not go to clients’ or business partners’ offices, this is still covered just in case!
- Advertising or reputational injuries (libel, slander, copyright infringement, and so on).
Commercial Property Insurance
For many accounting companies, the office is not just a place of work, it is a place for meeting clients and storing valuable office equipment and physical documents. These are all needed to keep your business running.
Hence, you need commercial property insurance to protect you from financial loss if your workplace is subjected to the following:
- Theft and vandalism
- Natural disasters that damage the property or limit its accessibility
- Business interruption due to the above causes that then leads to lost income
Cyber Liability Insurance
Whether you are part of an accounting firm or you’re working as an independent CPA, you are likely using one or more digital devices connected to the Internet for completing job tasks. In the event of a data breach or other form of cyber crime, your business is protected from financial loss. Cyber criminals are getting smarter and often, established companies and businesses with sensitive information are their focal points.
Cyber Liability Insurance covers the following costs if your business suffers from a cyber crime:
- Investigative work involved in the case and legal fees
- Costs associated with notifying customers about the data breach
- Business losses during operational interruptions caused by the cyber crime
- Business losses due to damage to the business reputation because of the incident (i.e. adverse media reports)
Employment Practices Liability Insurance
As an accounting company grows, it can take on numerous employees with various personalities and backgrounds. Though each individual is responsible for conducting themselves in the best manner possible, incidents can happen that result in employee-related claims which can cause financial loss for your business.
This is why your business can benefit from employment practices liability insurance; this type of insurance covers legal/settlement fees associated with the following employee-related claims:
- Financial accountants
- Government accountants
- Public accountants
- Tax accountants
- Forensic accountants
- Internal auditors
Virtually all these kinds of accountants are exposed to the following risks:
- Lawsuits regarding errors, negligence, inaccurate advice, and so on
- Data breach, malware, and other types of cyber crimes
- Lawsuits regarding bodily injuries resulting from accidents within business premises
- Lawsuits regarding advertising injuries
- Theft of vandalism towards the commercial property (office space) and its contents
- And more.
We have helped numerous accountants in securing a personalized accountant insurance plan that fits all their needs. If you have any questions about this type of insurance or if you’d like to get started on setting it up for yourself or your business, we’re here to help!
Why Is It Important for Ontario Accountants to Have Accountant Insurance?
In an increasingly litigious society, and in an industry that deals with finances, one mistake can lead to a lawsuit. This is why accountant professional liability insurance, also known as Errors & Omissions insurance, is a must-have for all CPA’s in Ontario.
Furthermore, based on your needs and preferences, you can opt for additional coverage that protects you from financial loss in the face of other unforeseen events. This is why looking into additional coverage is a wise step for all accountants in order to have a successful and secure future.
Accountant Insurance Claims Examples
Claims Example #1
You significantly miscalculate while doing tax work. The client is unhappy and decides to sue.
The client successfully sues. Your accountant professional liability insurance will cover the legal fees and the settlement amounting to $65,000.
Claims Example #2
While meeting with a client in your office, the client slips and falls because of poorly lit stairs, suffering an ankle injury. The client is rushed to the hospital and he decides to sue because of the poorly lit stairs.
The client successfully sues. Your commercial general liability coverage will cover the legal fees and settlement amounting to $35,000.
Claims Example #3
Your accounting company suffers from a data breach by a cyber criminal. Your operations are halted, the reputation of the company is at stake, customers are being notified of what’s happening, and investigations are still on the way.
Your cyber liability insurance will cover the total cost of this incident which is 1 million dollars.
Leading Provider of Accountant Professional Liability Insurance in Ontario
As an award-winning commercial insurance brokerage, we, at Contractors Insurance, strive to offer these following benefits for all professionals and businesses that we serve:
Personalized Insurance Plans
Whether you are looking to get accountant professional liability insurance and/or additional coverage, you can rest assured that the insurance plan you get from us is customized to your needs. You only pay for what you need. We can identify and remove any unnecessary riders to help you or your company save in the long run.
Transparency on Coverage and Limitations
Our level of transparency sets us apart from the rest. Whether you have gotten insurance before or it’s your first time setting up accountant insurance, you can be sure that we will be proactively transparent about all the pertinent details. We can discuss how it all works, what limits/exclusions are in the policy, what triggers a claim, and so on. And should you need any adjustments to the insurance plan, we’ll do all we can to accommodate them.
Thorough and Straightforward Insurance Education
As your partner in securing personalized accountant insurance, we are your source of information and assistance at every stage – from setting up insurance to filing claims. We don’t just provide assistance and then keep you out of the loop – instead, we seek to also empower you with the knowledge you need so that you can make informed decisions about your insurance needs for now and for the future.
Frequently Asked Questions About Accountant Professional Liability Insurance
Accountant professional liability insurance would cost around $46 per month for a coverage limit of 1 million dollars. If you or your accounting firm would like to secure additional coverage on top of this, there will be added costs. However, by having insurance bundles put together by an expert brokerage like Contractors Insurance, you will be able to get more cost-effective options.
The Chartered Professional Accountants of Canada (CPA Canada) requires all individuals (and firms), who offer accounting services to the public, to secure the accountant professional liability insurance.
Ready to Get the Coverage You Need?
Contractors Insurance is a leading insurance brokerage firm based in Toronto. We specialize in assessing risks faced by businesses as well as independent professionals; from here, we are able to put together an effective, tailor-fit insurance program that businesses and professionals can truly rely on.
Are you in need of an accountant professional liability insurance policy or a bundled accountant insurance plan? We are here to help!
Through the years, we’ve been able to help various accounting professionals and businesses in setting up the right insurance that propels them to a more secure and successful future. You’re only a few clicks away from getting the security and peace of mind that you deserve.