Professional liability insurance
To fill out your declaration and pay your premium, go to the plan administrator’s (ACPAI Insurance) website. To do so, you will need your CPA member number.
IMPORTANT: Do you have any claims to make for 2017-2018?
A new insurer will subscribe to the entirety of the group insurance plan this year. It is, therefore, imperative that you review your files and report before April 1, 2018 any claim made, any written or verbal allegation, or any act, error, omission or circumstance which may give rise to a claim under the group insurance plan, other than those already reported. Failure to report these to ACPAI Insurance before April 1, 2018 could lead to a denial of coverage by the insurer for this reason alone.
If you are aware of any claims or situations likely to result in a claim, you must report them in writing at email@example.com.
While the CPA status gives you rights, it also imposes certain obligations aimed at protecting the public. One of these obligations is participating in a group professional liability insurance plan. Under the Règlement sur l’assurance de la responsabilité professionnelle des membres de l’Ordre des comptables professionnels agréés du Québec, all CPAs must be enrolled in the Order’s group professional liability insurance plan, regardless of whether they provide their services directly to third parties; are employed by a business, an institution or a government; or are retired or not active professionally.
All CPAs are required to take out the Order’s professional liability insurance so that they are all covered by the same insurer, even if they work outside Quebec or Canada. For that purpose, you must submit your declaration to the plan administrator selected by the Order. This declaration makes it possible for all CPAs to determine which category of insureds they belong to and pay the corresponding premium based on the professional activities they perform and the income they earn from the professional services they provide to third parties. All CPAs must submit the declaration to the plan administrator and pay the premium by March 15 of each year.
The insurance premium is based on the risk associated with the various categories of professional activities. It varies from $30 to $1,750 and is tax deductible. CPAs who are employed by a company, an institution or a government and provide few or no services at all to third parties, which is the case of most of the Order's members, merely have to pay the modest premium of $60. This premium insures them in the event that a professional liability proceeding is instituted and their employer's insurance is insufficient or non-existent, and in case they occasionally provide some professional services to third parties, including those they provide for free. For example, CPAs who prepare tax returns for their friends and family, assist in the bookkeeping of an association or sports club or give financial management advice to acquaintances incur their own professional liability and can be taken to court as a result.
It should be noted that the policy covers $1 million per claim, has no total annual limit, and that in the event that you cease to practice or cease to be a member of the Order, you continue to be covered for any professional liability proceeding for six years afterward.
Categories of insureds and corresponding premiums
|Members who provide professional services valued above $9,999 to third parties within a firm or other entity or as self-employed members, either as partners, shareholders or employees who have been given the authority to sign reports or other documents
|Members who are employed by a self-employed CPA or a firm that provides professional services to third parties (unless they have signing authority)||$500|
|Members who provide professional services valued below $10,000 to third parties within a firm or other entity or as self-employed members, either as partners, shareholders or employees||$60|
|Members who work in a business or an institution, in the public service or education, or operate a business, in Quebec or elsewhere
If you also provide services to third parties, refer to the previous category.
|Members who do not practice the CPA profession under any circumstances, whether compensated or not, or who are unemployed||$60|
|Retired members with no income1||$30|
|Retired members with income2 between $1 and $24,999 who work in a business or an institution, in the public service or education, or who operate a business, in Quebec or elsewhere.||$30|
This insured category is reserved for members who have retired member status or who will request retired member status with a view to obtaining it by next April 1 for purposes of the annual dues payable to the Order on March 15.
|Retired members who provide professional services valued below $10,000 to third parties within a firm or other entity or as self-employed members, either as partners, shareholders or employees who have been given the authority to sign reports or other documents.||$30|
|Retired members who provide professional services valued above $9,999 to third parties within a firm or other entity or as self-employed members, either as partners, shareholders or employees who have been given the authority to sign reports or other documents.||$1,750|
This category of insureds is reserved for members who have retired member status and who have been recognized as life members by the Order. To be life members, CPAs must have been entered on the roll of the Order for 50 years (consecutive or not) and have signed a declaration covering their obligations. CPAs may have been members in another province, but must have been members of the Quebec CPA Order for at least 25 years. Life members who are not retired or who are still active professionally (whether or not they are retired) are not included in this category.
|Retired life members who are not active professionally||$0|
Any notice to the Insurer(s) may be sent by any recognized means of communication to the Insurer(s) or its authorized representative. It is incumbent upon the sender to prove that such notice was received.
Continental Casualty Company
1800, McGill College Avenue, Suite 520
Montréal (Québec) H3A 3J6
April 1, 2018
Need more clarification on what is covered by the mandatory professional liability group insurance plan and the categories of insureds, the selected plan administrator and insurers or other aspects of the plan?
If you still have questions, contact the Order by phone at 514 789.1233, or toll free at 1 800 363.4688 , or by email at firstname.lastname@example.org.