Minimum professional indemnity insurance (PII) requirements under CPA Australia’s By-Laws:

  • the policy must be underwritten by an APRA-authorised general insurer or insurers
  • minimum of $2 million in PII cover for members in Australia and NZ$1 million for members located in New Zealand
  • provision for one or more automatic reinstatements following a claim
  • provision for an excess for each and every claim
  • cover for losses arising out of dishonesty (fidelity cover)
  • indemnity for all of the Public Accounting Services that you provide
  • retroactive date no later than seven years before the beginning of the period of insurance
  • cover for everyone affiliated with the practice 
  • cover for defence costs in addition to the minimum limit
  • provision for run-off cover for a period of not less than seven years.

A detailed explanation of the requirements can be found in Managing your risks with insurance (PDF).

CPA Professional indemnity insurance offer

PII is mandatory for all CPA Australia Public Practice Certificate holders, as well as other members providing public, honorary or private accounting services, whether paid or unpaid.

CPA Australia PII Scheme

PII for members earning over $10,000 in gross fees per calendar year.

CPA Australia Mini Policy

PII for members earning less than $10,000 in gross fees per calendar year and performing private accounting services as an individual.

CPA Australia Global PII Policy

PII for members providing pro bono or voluntary accounting services in the community.

Find out more

Chubb Elite Master Policy and the Chubb Elite Excess PII Policy

The Chubb Elite Master Policy (Policy), which provided protection from 8 October 2017 to 15 October 2019 during the Scheme Gap Period* and extended to cover ‘representatives’ of financial planners excluded from the 2017 Professional Standards Scheme (Scheme), has expired. The new Scheme due to commence on 23 December 2019 is more inclusive and has made the Policy redundant. However, the Policy is replaced by the new Chubb Elite Excess Professional Indemnity Insurance Policy (Run-Off Policy) (PDF), which may boost eligible public practitioner’s professional indemnity insurance for public accounting services by between $2-5 million for causes of action arising from the Scheme Gap Period* up to an aggregate limit of $25 million for the Period of Insurance^. Run-off cover is a type of liability insurance that provides cover for work done by a business in the past.

The Run-Off Policy covers PAS conducted during the course of your business, but excludes the following:

  • Computer consultancy or management consulting activities unless services are ancillary to other PAS
  • Auditing, merger, acquisitions and business valuations of publicly listed companies
  • Insurance agency
  • Superannuation fund management/trusteeship
  • Dealing in securities
  • Financial product and investment advice, except for:
    • SMSF Services including applying for, acquiring, varying, issuing or disposing of an SMSF interest
    • SMSF establishment, contributions or pensions
    • Class of product advice including superannuation products, securities, simple managed investment schemes, general insurance products, life risk insurance products and basic deposit products described in the Corporations Regulations 2001 (Cth) at s.7.6.1BA(3), 7.6.04(3), 7.8.12A(4) and 7.8.14B(3).
State or territory Period of Insurance^ Scheme Gap Period*
NSW

 

 

 

15 October 2019 to 15 October 2024

8 October 2017 to 23 December 2017 
WA 8 October 2017 to 30 December 2017 
QLD 8 October 2017 to 1 January 2018
ACT 8 October 2017 to 1 January 2018
NT 8 October 2017 to 18 January 2018
SA 8 October 2017 to 24 January 2018
TAS 8 October 2017 to 21 February 2018
VIC 8 October 2017 to 19 March 2018

Other insurance

Contact

CPA Australia
1300 73 73 73
publicpractice@cpaaustralia.com.au

Fenton Green & co.
1300 760 123 (within Australia)
+61 3 8625 3333 (outside of Australia)
cpa@fentongreen.com.au