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Is Professional Indemnity Insurance Compulsory?

Insurance for accountants: FAQs
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Accountants Professional Indemnity Insurance
Average Cost of Accountant Insurance

Protection for your business if a client alleges negligent acts, errors/omissions/actual negligent acts or offered poor advice. Financial support for claims made against the company, its senior staff or its Directors’s & Officers’ Add our Office Insurance policy to provide cover for business premises and equipment against disasters such as a flood or fire, accidents, acts of vandalism and burglary. Cyber Cover offers assistance to you and third parties if a Cyber Event occurs. Provides cover for loss of money and other property resulting from fraudulent or dishonest acts committed by an employee or volunteer. This can come standard with Office Insurance Policies too. Insurance to keep your vehicles and surveyors on the road.

New practices must secure insurance before commencing work
ACCA provides a list of approved insurance brokers for guidance
The requirement applies to all ACCA members offering professional services
Certain non-practicing roles may be exempt from mandatory PI
Scope of services offered dictates the necessary level of cover

What does Accountants professional indemnity insurance cover?

Insurance for accountants: FAQs

With professional indemnity insurance you can choose the level of cover you need. You’ll be protected from claims made against you if a client of yours loses money after following your advice or using your services. Are working for a client who insists you have cover Public liability insurance protects you if someone gets accidentally injured, or their property gets accidentally damaged because of your business. This could be anything from a client having a fall in your office, to you accidentally damaging their laptop. You can set your cover level up to £10† million, though a client may ask that you have a certain level of cover before they are willing to work with you.

Cancellation and termination

If you’ve got anyone working for you then employer’s liability insurance is a legal requirement. It protects your employees if they get injured on the job or fall sick because of working for you. You’re required by law to have £5 million cover, but we give you £10 million as standard. Any accountant who has people working for them is legally required to have this cover under the Employers’ Liability Act 1969. People taking part in work experience or training schemes Don’t let a claim derail your business – get Electricians’ insurance with AXA today and Future You will thank you.

Cover starting at £5 a month

When you need just a little extra cover, we have optional extras that can help. So, whether you need assistance to settle a dispute or protection for your essential tech, we’ve got your back. If you want extra legal protection our legal expenses optional extra could be the right fit for you. With this cover you’ll get a little extra help to cover the cost of settling disputes brought against your business. Get cover up to £1 million and up to £100,000 for any single claim. Accountants Professional Indemnity Insurance covers claims made against you by a client or third party that alleges negligence, a breach of trust or confidentiality, or defamation. The policy covers the cost of any damages awarded, claimants’ costs and the costs of defending the claim. What other insurance does an Accountant need? The other insurance you need will be based on your circumstances. Looking to close your business, then you may need Run Off Cover. If the Limit of indemnity needs to increase, then you need Excess Layer Insurance.

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Most of an accountants day to day work hinges on reliable access to the tech and systems bet sign up bonus sites that make your job possible. If something were to happen to the your computers you use, then business can come to a standstill. Business equipment cover helps with the cost of replacing or repairing ant lost, stolen or accidentally damaged equipment. The level of cover you need depends on the equipment you’re insurance – always make sure to accurately value your equipment to avoid underinsurance. No two policies are the same, which is why their price isn’t either.

4.4 Bye-Law 8 and the conduct overlay

There’s no one size fits all when it comes to insurance, so if you’d like to what it would cost you to insure your business with us, the easiest way to do that is to get a quote online and see exactly what you’d pay for the types and levels of cover you’d need. Our customers’ reviews, independently moderated and managed by feefo. *The guidance is provided on behalf of AXA by Arc Legal Assistance Ltd who are authorised and regulated by the Financial Conduct Authority. †Not all occupations are eligible for £10 million coverage, the best way to find out which level of cover you are eligible for is to get a quote. Existing customers may want to consult their policy documents.

Your instructions to us

Professional Indemnity Insurance for Accountants and Accounting Practices Unfortunately, your chosen career path means small mistakes could have enormous consequences if a claim should arise for your clients and you. That’s why Professional Indemnity Insurance for Accountants and Accounting Practices is essential. Choosing a broker to act on your behalf is also essential, as it’s not just a simple case of picking an off-the-shelf PI product. We have worked with many Accountants and Accounting Practices to secure their Professional Indemnity Insurance when they are members of ICA, ICAEW, AAT, ACCA, CIMA or CIA. UK-based expert support, online and on the phone. Do you need to cover past works, then we can work with you to put a Retroactive Date on your PI Cover If you have employees, you will need Employers Liability Insurance. Do you have equipment that needs protecting? Then an Office Insurance policy can provide cover for your furniture, IT equipment, technical surveying equipment If you don’t want to be personally liable as a Director, a Directors’ and Officers’ insurance policy covers your defence costs and any compensation you must pay. What are the PI requirements for ICAEW, AAT, ACCA, CIMA or CIA?

Firm/Individual Category	Minimum Limit per Claim (GBP)	Aggregate Limit (GBP)	Basis of Calculation
Sole Practitioner	100,000	1,500,000	Annual Fee Income
Partnership (2-5 partners)	500,000	3,000,000	Aggregate Fee Income
Corporate Practice	1,000,000	5,000,000	Turnover & Risk Profile
Insolvency Licence Holder	1,500,000	10,000,000	Statutory Requirement

Each regulatory body has its minimum Limit of Indemnity (LOI) levels of Professional Indemnity Cover required by members, which is based on your fee income. You should look at your Associations website for further information. What if my Accountancy firm is unable to obtain PII? If your firm is unable to obtain PII in the insurance market via your existing broker, then we may still be able to help. As a last resort, you can apply to enter the assigned risks pool of your Association for ’emergency’ cover for a period of up to two years so that you can continue to practice. Do I need Professional Indemnity Insurance after I've ceased to practice? Yes – it is essential that you secure ‘run-off’ cover for your previous practice after you cease to practise. This is to cover you for claims for work done while in practice but arising after the practice ceased. This requirement is in your own interests, whether or not you think you might have claim in future. Contact our friendly team today to discuss your insurance needs.

Accountants Professional Indemnity Insurance

Some clients, such as local authorities and lenders, may ask for higher limits on certain transactions. Larger client contracts involving sums greater than the compulsory primary indemnity limits need to be carefully reviewed. If you decide that upcoming work potentially creates a higher-than-average risk, additional premium for top-up insurance needs to be factored into your decision about whether you accept the retainer. Taking the above into consideration will help you avoid an uninsured loss. The purpose of your insurance policy is to transfer risk and for insurers to pay claims, so ideally, your liability as a practice should be limited to the policy excess (deductible) that you have selected.

Key takeaways

If you have any questions on your policy, please contact our team, who will be more than happy to assist with any queries you may have. Muazzez Acar Cert CII – Account Executive, Lockton Companies LLP If you have any questions about professional indemnity insurance, please contact your Lockton Account Manager for further advice or email ACCAaccountants@uk.lockton.com. Lockton is ACCA’s recommended broker for professional indemnity insurance If a client of yours loses money because of your bad advice or improper practices, you need to be prepared to deal with a claim. Professional indemnity insurance is the main cover that accounts need. However, there are several other covers that accountant's should consider to get the most out of their cover.

3.6 Subsidiary undertakings, networks and overseas branches

Yes, professional indemnity insurance is a requirement to gain memberships to many of the top professional bodies for accountants. For accountants, a business insurance policy will typically be made up of several covers that give you the best coverage for all your need. Professional indemnity is the main cover of any policy for an accountant as this will cover you in the evet that your advice or services causes a client to lose money. But, you would also benefit from public liability (to help with third-party claims of accidental injury or damage_ and possibly employers’ liability if you have anyone working for you (in case they get injured or fall ill due their work). Accountants insurance is tailored to businesses like yours and, if you are a member of a Chartered Accountant Institution, it meets the standards of your professional body. Whether you call us for a chat or drop us an email.

Minimum indemnity limit typically £50,000 for members in practice
Cover must be provided by an insurer authorized in the UK
Policy must cover civil liability from professional business activities
Run-off cover required upon retirement or cessation of practice

We will aim to respond within 24 working hours. We look forward to helping you find what you’re looking for. Cyber insurance can be expensive, and it can be difficult to get the best terms.

Average Cost of Accountant Insurance

Specific Claims and Risk Management advice, along with technical bulletins are provided throughout the policy period. Accountants can use our facility whether a sole practitioner or part of a larger practice. MFL is trusted by thousands of Professionals. Compliant quotations can be obtained by completing the Accountants proposal form, which has been tailored bet free bets sign up no deposit to the specialist activities and advice of the Accountancy profession. We start with our making sure your Professional Indemnity Insurance cover is based on your circumstances and is compliant with your governing body, you can then choose to add on extras that suit you and your risk appetite. Here are a few tips on how to get better cyber insurance terms from an insurer.

Coverage Element	Description	Typical Inclusion
Civil Liability	Covers negligence, error, or omission in professional services.	Standard
Defence Costs	Legal and investigation costs, often in addition to limit.	Standard
Loss of Documents	Covers costs to replace or restore lost/damaged client documents.	Standard
Libel & Slander	Covers defamation claims arising from professional activities.	Often Included
Fidelity Guarantee	Covers client money loss due to employee dishonesty.	Optional / Recommended

In partnership with Lockton, ACCA runs regular webinars providing insight and guidance into PII. Common claims trends and risk management of claims against accountants.