Institute of Certified Bookkeepers

Insurance for Using and Referring Software

Insurance Made Easy (ICB preferred broker) has confirmed that the IME / Chubb policy does cover our members for any loss of business records due to their involvement in that data even if that data is on the software company's server. In addition IME advises the cover extends to your involvement in or being instrumental in the referral to use that software.

Bookkeepers use a Variety of Software

Increasingly the bookkeeper will be working with data that maybe on the desktop, but also maybe on desktop that is synchronised to an external server, or the program and data are all on the server of a software company ie browser based software (such as MYOB Essentials, Intuit QuickBooks Online, Reckon One, Xero). In this latter case the data is on the software company's server, in the "synchronised" scenario it is on both the local machine and the software company's server or it may be on a provided ("Hosted") server.

Where are the Business Records?

The business records include the record of the transaction within software. Increasingly the prime business (purchase from supplier) invoice records are also being stored on a server. So please note “Cloud” type software records are specifically included.

Risks for a Bookkeeper

Arguably in many of these cases our members do not have "custody" of the data, but they may have arranged for the data to be on a server, they will certainly be operating on data that is on the server.

The IMS policy includes where you don’t take "custody" of the business records in a physical sense. You may be instrumental in the placing of digital / electronic business records on computers or on servers. Where you are in physical custody of the business records or data this is also covered. Policy details includes current covers which stay in the policy:

  • Installation, set up, Configuration, training and use of accounting and financial management software
  • Data File management at client site or at different location including remote access software
  • A loss of documents section, which covers loss or damage of documents for which the insured has been entrusted due to wrongful act

For further details regarding PI Insurance from Insurance Made Easy, click here.