The recently updated information is available now in the TPB's PI insurance and continuing professional education Explanatory papers.
The TPB recently published:
“The TPB recognises the emerging threat of cyber-attacks and the importance of tax practitioners proactively protecting themselves, their practice and their clients”, acting Chair of the TPB, Greg Lewis said.
“One way that tax practitioners can protect themselves is to consider whether they should take out additional professional indemnity (PI) insurance cover to assist with first party losses arising from a cyber-attack. Such losses can include a ‘denial of service’ attack or the costs of rectifying harm done, such as repairing and restoring systems that have been damaged by malicious acts.”
The TPB also recognises that cyber security awareness training can assist tax practitioners protect themselves from a cyber-attack. As a result, the TPB now specifically recognises that cyber security training a tax practitioner undertakes will contribute to them meeting their continuing professional education/development requirements with the TPB and their obligations under the Code of Professional Conduct. The TPB policy paper on BAS Agents PII requirements has been updated to recommend the inclusion of insurance against Cyber Risk.
"Once an agent has assessed the risk of a cyber-attack, the TPB recommends they consider whether they require additional protection against cyber threats, including losses that an agent may suffer from a cyber-attack (first party losses)"
While the TPB has not required additional Insurance, ICB recommends members include it in the policy. The ICB Directors and Advisory Board are considering a proposal for it to be a required inclusion.
ICB has arranged suitable coverage with our preferred Insurance provider IME.
We are now extremely reliant upon the internet and the cloud. As a bookkeeper, this means that you carry much responsibility to protect your client's data, privacy and access to banking. So for you, the thoughts around “what if” are becoming increasingly important.
The good news is that your IME/Chubb Professional Indemnity covers most of these “what if's”. You can also read practical tips on protecting your practice from cyber threat.