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Professional Liability Insurance

Professional Liability Insurance

Find Out About The Professional Liability Insurance Requirements

Any firm engaged in the practice of public accounting or in providing accounting services to the public must maintain professional liability insurance and provide CPA Ontario with proof of this insurance.

Professional Liability Insurance

Members can update their insurance by clicking the update today button to log in to My Portal, selecting Firm Dashboard and Select Firm to choose the Appropriate Firm. Now click on Professional Liability Insurance and select Update Insurance Information.
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Professional Liability Insurance

All firms engaged in the practice of public accounting or in "providing accounting services to the public" must have professional liability insurance. These terms are defined in CPA Ontario's By-law.

Registering firms must provide satisfactory proof of professional liability insurance before they can complete their firm registration and begin to practice public accounting or provide accounting services to the public. Proof of coverage must also be provided on an annual basis on the anniversary date of the insurance policy and within five business days of the expiry of its policy.

Once you stop practising public accounting or providing accounting services to the public you must maintain discovery insurance for six years from the date of cessation. For more information, refer to Discovery Policies below.

If a firm practises public accounting or provides accounting services to the public without proof of insurance in accordance with Regulation 14-1, the Registrar shall suspend the firm and its firm representative. The Registrar will deregister the firm and revoke the firm representative's membership 30 days after the imposition of a suspension unless before that date, the firm provides proof of insurance, and the Registrar has reinstated the firm and the firm representative. 

Prescribed Levels of Insurance

Minimum Professional Liability Insurance Requirements

The minimum amount of professional liability insurance required to be maintained is set out in Regulation 14-1. The minimum amounts apply to all firms engaged in the practice of public accounting or providing accounting services to the public.

Maximum Allowable Deductible

Regulation 14-1 requires that any deductible amount must be reasonable in relation to the total revenue of the firm and shall not exceed 50 per cent of the required minimum amount of insurance to be maintained. Each firm must set aside assets (cash or cash equivalents) that are at least equal in value to the amount of the deductible that is specified in the professional liability insurance policy.


Members who do not currently have coverage are urged either to contact their own insurance brokers, or one of the following:

Members are reminded to read the fine print in the insurance contract to ensure that the policy provides the coverage needed to meet the mandatory professional liability insurance requirements of Regulation 14-1.


Please contact your insurance provider for detailed premium and coverage information. Also check limits per claim as well as the aggregate limit.

Keep in mind that each provider may offer different features. For instance, check whether:

  • Directors & Officers coverage is provided, at no additional cost for qualifying boards.
  • There is a deductible reduction if a claim is successfully settled using an alternative method than going to court.
  • Traditional and non-traditional CPA services are covered, and whether coverage is provided for public company related services.
  • Defence costs are covered in addition to the policy limit.
  • There is innocent partner coverage.
  • True worldwide coverage can be added to your policy to respond to a lawsuit presented in a country outside North America where the services are rendered.
  • There are separate charges for a discovery policy in your circumstances when you cease the practice public accounting or providing accounting services to the public.

Discovery Policies

Regulation 14-1 requires that professional liability insurance in an unreduced amount must continue to be maintained for a period of at least six years after the member, in general terms, ceases to be involved in the practice of public accounting or providing accounting services to the public or the practice is dissolved. More specific details on the circumstances are provided in Regulation 14-1. This type of policy is generally referred to as a "discovery policy".

Should a member pass away, the estate should maintain coverage for the six-year discovery period.

The CPA Professional Liability Plan Inc. has a special discovery policy for sole practitioners (under certain circumstances) at no cost, as long as the practitioner meets their requirements of eligibility. Please contact the CPA Professional Liability Plan Inc. for further information.

Policy for Members Providing Assurance Services Without Reward for NPOs

Members who engage in the practice of public accounting without reward, under certain conditions, are exempted from the requirement to be licensed. They must still however, have professional liability insurance coverage.

If you are a member providing assurance services without reward for small charitable or not-for-profit organizations, CPA Ontario has approved a policy to provide insurance coverage at no cost provided that you register with CPA Ontario and meet certain terms and conditions.

One of the conditions is that each organization for which assurance services are provided without reward have annual gross revenue from all sources of $100,000 or less. (See Public Accounting Licence for more information on the exemption and how to apply for the policy arranged by CPA Ontario). Members who provide assurance services without reward for organizations having annual gross revenue of more than $100,000 or who otherwise do not meet the prescribed terms and conditions must obtain their own insurance coverage. 

Professional Liability Insurance FAQs

Find answers to common questions about Professional Liability Insurance.
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