Accountant and Bookkeeping Insurance
Chartered Professional Accountants of British Columbia (CPABC) is one of the largest professional organizations in the entire province, counting over 32,000 CPA members and approximately 6,500 legacy and CPA students and candidates. In addition, there are those who work in the industry, but may not have a CPA certification. This collective group of firms, partnerships and sole proprietors are responsible for advising and managing the bookkeeping of individuals, households, small to medium businesses, not-for-profits, government agencies, and multinational corporations.
With such a vast reach across Vancouver and British Columbia, it goes without saying that there is a lot at stake when it comes to preparing, examining, and auditing financial records on behalf of clients. As a firm, partnership, or sole practitioner that is not employed but under contract with clients, you run tremendous risk. Your job is to ensure that financial records are accurate and that taxes are paid properly and on time. In addition, you may perform overviews of the financial operations of a business and make recommendations to help it run more efficiently. A significant misstep or error can potentially cost a client tens of thousands of dollars or even more, which will certainly come right back to you. This may result in legal action which could potentially leave your accounting business in ruin. You need to protect yourself with a comprehensive insurance policy that accounts for all that can befall an accountant.
Common Liability Concerns for Accountants and Bookkeepers:
- Accounting malpractice
- Data protection – You manage and store a significant amount of sensitive financial data for your clients. This makes you a target for cybercrime, which leaves you more susceptible to liability (in the event of a data breach) than most other industries. You may also have to contend with compliance measures put in place by the Personal Information Protection and Electronic Documents Act (PIPEDA) in Canada in addition to the EU’s newly adopted General Data Protection Regulation (GDPR) which directly impacts BC accountants with clients who hold even one single record for someone in the EU. Failure to meet these compliance standards can result in punitive financial measures taken against your client, and ultimately you in the form of a liability claim.
The list above may detail some of the primary liability concerns for accountants, but there are many other vulnerabilities to contend with as well. Whether you are acting on behalf of a firm, partnership, or yourself as a sole proprietor, you must take every measure to protect your clients and your own interests with the most comprehensive coverage possible.
Insurance Resources Available to Accountants in BC
- Small Business Insurance
- Commercial Property Insurance
- Commercial Liability Insurance
- Business Interruption Insurance
- Errors and Omissions Insurance
- Directors and Officers Liability Insurance
- Cyber Insurance
Consult with an independent insurance broker to ensure that you have a policy that considers everything addressed above, and more. If your accounting or bookkeeping operation is based in BC, contact Park Insurance in Greater Vancouver today.