Accountant's professional liability insurance: why does it matter?

In short: an accountant covered by professional liability insurance is your safety net should an error creep into your tax returns. This is the first of over 67 criteria that Bankeo checks before recommending someone to you. You don't have to check or pay anything.

When choosing an accountant, we think about price, availability, and friendliness. We rarely think about insurance. Yet, it's probably the most tangible protection you have if something goes wrong.

What is professional liability insurance for an accountant?

Professional liability insurance (often called professional liability insurance, or errors and omissions insurance) covers the consequences of a mistake, error, or omission made by an accountant in the course of their work. A poorly completed tax return, a forgotten tax credit, a missed deadline: if this causes you financial harm and the accountant is liable, their insurance may compensate you.

Without this insurance, your only recourse would be to go directly against the accountant and hope they have the means to make the repairs. With it, there's an insurer behind it, and therefore a real capacity for compensation.

Why does this change everything for you?

An accountant is human, and even the best can make mistakes. The real question isn't "Will he/she ever make a mistake?", but "If that happens, am I protected?".

In practical terms, an updated professional liability insurance policy provides you with three things:

• A real recourse if a mistake costs you money (penalties, interest, compensation).
• A sign of seriousness : a professional who takes out insurance is a professional who takes their responsibilities seriously.
• Peace of mind : if you're going to entrust your figures to someone, it might as well be someone who's covered.

In Quebec, CPAs who are members of the Order are required to carry insurance. However, not all accountants are CPAs, which is precisely why it's necessary to verify each case individually.

How to check for yourself (and why it's tedious)

If you wish to do it yourself, here's how to proceed:

• Ask the accountant for a current professional liability insurance certificate ;
• check that it is valid (the dates) and that the amount of coverage is sufficient for your situation;
• For a CPA, you can cross-reference with their status with the Quebec CPA Order .

It's possible, but it's an extra step that you'll have to repeat for each accountant you consider. Most entrepreneurs don't have the time or the inclination to do it.

How Bankeo verifies it for you

This is exactly the work Bankeo does for you, free of charge. Professional liability insurance is the first criterion of the Bankeo Index : before an accountant joins the network and we introduce them to you, we make sure they are covered.

So you don't have to check anything. You describe your needs, we filter the network, and we present you with an accountant who has already been audited, insurance included. You compare, you choose, and we remain by your side. You never pay Bankeo: you only pay the fees of the accountant you choose, directly to them.

Find an audited accountant, insurance included. Get started for free.

In summary

• Professional liability insurance protects you , not just the accountant, in case of error.
• Not all accountants are insured in the same way: it is necessary to check, with supporting documentation.
• Bankeo checks it for you, free of charge, as the first criterion of the Bankeo Index .