Professional Liability Insurance

The overwhelming majority of interactions between CPAs and their clients are smooth and seamless. However, if things go wrong, professional liability insurance can protect our members and the public. The CPA Nova Scotia Board of Directors has implemented a Professional Liability Insurance Policy. This policy requires all members or registered firms who engage in public accounting or a regulated service to carry professional liability insurance.

"How Much Insurance Must I Carry?"

The minimum amount of insurance you carry depends on the nature and size of your firm:

If you are a sole proprietorship, where only one member will be practicing public accounting or a regulated service, you must carry coverage of at least $1,000,000 per claim and $1,000,000 in aggregate. Defense costs should be in addition to these limits.
If you are a registered professional corporation or partnership, with two to three members practicing public accounting/regulated services, you must carry coverage of at least $1.5 million per claim and $1.5 million in aggregate. Defense costs should be in addition to these limits.
If you are a registered professional corporation or partnership, with four or more members practicing public accounting/regulated services, you must carry coverage of at least $2 million per claim and $2 million in aggregate. Again, defense costs should be in addition to these limits.
If you are a limited liability partnership, please refer to the CPA Nova Scotia By-Laws.

Further coverage requirements including discovery period and prior acts coverage can be found in the CPA Nova Scotia By-Laws  and CPA Nova Scotia Professional Liability Insurance Policy. 

 

Important Note: 

Registered firms are required to carry professional liability insurance and must report and confirm this coverage at least annually to CPA Nova Scotia.  This can be done through the Firms Annual PLI Declaration form.

The form is due on September 30th of each year.