Professional indemnity insurance

Public accountants

Professional indemnity insurance

If you provide public accounting services in Australia or New Zealand then you need to hold professional indemnity insurance (PII) that contains specific features.

The minimum professional indemnity insurance requirements under CPA Australia's By-Laws are:

• coverage of at least $2 million with an APRA registered insurer for members in Australia or NZ$1 million for members in New Zealand with an insurer licensed by the Reserve Bank of 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
• 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.

Public Practice Certificate holders are required to update details of their professional indemnity insurance annually in their member account.

If you have adequate professional indemnity insurance, you may also be eligible for the Professional Standards Scheme to limit your liability.

Approved insurance policies

To make insurance simpler for you, CPA Australia has negotiated several optional insurance policies with reputable partners. 

Opting for one of these policies may benefit you by:

• Ensuring you have adequate cover to protect your business and meet your certificate requirements
• Your insurance is automatically updated at renewal to reduce administration
• Meeting the criteria for the Professional Standards Scheme to limit liability for eligible members. 

Fenton Green Professional Indemnity Insurance Policy for members in Australia.

Apex Insurance Professional Indemnity Insurance Policy for members in New Zealand.

Chubb Elite Professional Indemnity Insurance Policy (Run-Off Policy).

Chubb Elite Excess Professional Indemnity Insurance Policy

The Chubb Elite Excess Professional Indemnity Insurance Policy (Run-Off Policy) started on 23 December 2019. Run-off cover is a type of liability insurance that provides cover for work done by a business in the past.

This policy 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.

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
• sealing 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).
    
    

Contacts

CPA Australia
1300 73 73 73
[email protected]

Fenton Green & Co.
1300 760 123 (within Australia)
+61 3 8625 3333 (outside of Australia)
[email protected]