Insurance Requirements When Closing Your Firm
Regulatory Standard Edition: January 2024 | Published: January 16, 2024
Closing firms must have discovery insurance in place for a period of at least six years to comply with firm obligations. Discovery insurance, also known as professional liability insurance in an unreduced amount, can be obtained through your insurance provider.
Members with firms that are no longer providing accounting services to the public or engaging in public accounting should submit a firm closure request. This includes retired members that are no longer operating. Members are required to maintain discovery insurance for a minimum of six years after the cessation of the firm to comply with firm obligations.