Professional Indemnity Insurance for Accountants
Are you an accountant in need of professional indemnity (PI) insurance?
As a practice providing professional services to its clients, you must ensure that you’re protected should anything go wrong. Having the right accountants’ Professional Indemnity Insurance in place is the answer.
Join ICPA for enhanced, ICAEW-compliant insurance to protect yourself and secure your practice against unforeseen client claims.
Cover Provided by AXA – An ‘A’ Rated Insurer
- check_small Through our membership, ICPA members benefit from insurance provided by AXA. We are proud to be working with such a reliable and credible professional liability insurance provider.
- check_small Members will be pleased to know that AXA is A-rated, demonstrating their excellent ability to pay out in the case of a claim.
Tailored Policies for Accountants
- check_small Professional indemnity insurance is vital for any professional services business - but different types of businesses have different needs.
- check_small Rather than choosing a one-size-fits-all PII policy, we’ve partnered with AXA for cover that is specifically designed to meet the unique needs of accounting professionals.
Competitive Pricing and Comprehensive Cover
- check_small Purchasing standalone liability cover for accountants can be costly. With an ICPA membership you benefit from the value for money and peace of mind that come with comprehensive, compliant insurance - as well as all of our other membership benefits.
ICAEW Compliant Cover
- check_small ICAEW affiliation requires individuals and small practices to meet incredibly stringent requirements in a range of areas. This includes their accounting insurance policies.
- check_small Our professional indemnity insurance meets these requirements, making ICPA membership an ideal choice for ICAEW affiliates.
Financial Protection and Client Confidence
- check_small Taking out professional indemnity insurance will cover any legal fees you need to pay any damages awarded against you, safeguarding your financial stability.
- check_small PII sends a clear message to your clients that there is financial backing in the very unlikely event of a mistake. This can enhance their trust in your practice.
The Importance of PII for Accountants
Your clients put a great deal of trust in your professional expertise and years of experience. They trust you with their personal information and sensitive financial data – and they pay you for your expert advice.
Most of the time, your client’s work will be plain sailing. However, there’s always the possibility that something could go wrong.
We are all human, after all: it’s always possible that your practice could make errors or unintentional omissions or that you could provide advice that leads to a client’s financial loss. Should they decide to take legal action as a result, the financial burden on your practice could be significant.
Professional indemnity insurance provides you with a safety net. It ensures that you are able to defend your practice against any potential legal claims from clients without footing the full financial cost yourself.
Dedicated insurance for small accounting practices will give your clients peace of mind – as well as safeguard your professional reputation and underpin your financial stability.
Liability Cover Options
Each of our three membership options features different indemnity insurance options. As standard, Pro members receive £300K of cover, Premium members receive £500K of cover, and Essentials members receive £100K of cover. Our policies can be tailored to suit you, and the cover can be for £1M if required.
Pro Members – £300k Cover
- ICPA Pro members receive £300K of professional indemnity cover as standard - conditional on the individual or practice having fees no greater than £250K per annum. If fees exceed this figure, or if the member conducts certain types of work, additional premiums may be incurred.
Premium Members – £500k Cover (New)
- ICPA Premium members receive an increased level of cover - an upgrade to our former single membership package. As with the cover for Pro members, this cover is subject to certain conditions.
Essentials Members – £100k Cover
- ICPA Essentials members receive £100K of PII cover as standard. Special conditions apply, and further details of this cover are still to be confirmed.
Membership Conditions and Additional Premiums
As with any insurance policy, ICPA’s PII cover is subject to certain membership conditions – and there are instances where additional premiums may be required:
Fee Limitations Up to £250k
- Our standard PII cover applies to members whose annual fees total up to £250,000.
Additional Premiums for Higher Fees or Specific Work
- Should members exceed this £250K annual fee threshold – or should they conduct certain types of work – they may incur additional premiums. After completing a declaration before the policy term begins, members will be informed as to whether this applies.
Application Process and Declarations
- Before our accountants’ PI insurance cover can begin, ICPA members will need to complete an application and declaration process. This should be completed accurately to ensure that your professional liability insurance is valid and that you receive the appropriate coverage, tailored to your exact needs.
Choosing the Right Level of Coverage
While it can be tempting to choose a PII policy based on price, you need to ensure that you are getting the right level of coverage for your money. “The right level of cover” will vary from practice to practice and depend on several factors.
The size of your practice will have a part to play, as well as the complexity of the services that you offer. The makeup of your client base and the types of work that you do will also affect the cover level you choose: the higher the potential financial impact of a claim against you, the higher the level of cover you will need.
PII policies, like any other insurance policies, are priced based on potential risk. Risk factors included in pricing calculations include the categories of work your practice undertakes, any claims history, your practice’s fee income and the ratio of partners or directors to staff at your practice.
Once you have chosen a potential policy, be sure to read the documentation carefully. Before you proceed, you’ll want to make sure that every element of cover you need is included and that you have a strong understanding of the policy wording.
How to Access Our PI Insurance
If you want to take advantage of our professional indemnity insurance cover – along with all of our other membership benefits – join the ICPA today.
Joining ICPA
Because we want to make ICPA membership as accessible as possible, we have simple joining criteria. As long as you have at least three years of experience in working in practice in a taxation or accounting role at a manager or partner level; or hold a practice certificate or licence with a qualifying organisation, we’d love to have you on board.
Completing the Application
Once you are an ICPA member, we’ll send you full details of how to complete your accountants’ PI insurance application. When you apply, you’ll need to include information such as your total annual fees and information on the types of work you conduct, so be sure to have this to hand.
Read the declarations in the policy application carefully: a failure to disclose information accurately and fully may mean that your cover is invalid.
Common Risks Covered by PII
Professional indemnity insurance for accountants tends to cover four key areas of risk, namely:
- Negligence. This includes any oversight or mistakes resulting from your firm’s work, such as providing incorrect advice or miscalculations.
- Loss of documents or data. Your practice will have a large amount of client data and documentation in its care. Should this data or documentation become damaged or lost, your PII policy will have you covered.
- Defamation. A client may make a defamation claim if you say or publish something in your professional capacity that results in their reputation being damaged.
- Breach of confidentiality. Whether intentional or unintentional, the sharing or loss of confidential client data can have significant consequences for their business. PII can cover the cost of compensation payouts and legal fees should this happen, protecting your practice’s finances.
How else can the ICPA help you?
There are plenty of ways in which you can benefit from being a member of the ICPA. Find out more below.
FAQs on Professional Indemnity Insurance for Accountants
Feel free to contact us with any further questions you have about our PII cover – or see our frequently asked questions below:
Professional indemnity insurance (PII) is available for all types of professionals, including accountants. It protects you in the rare event that a client files a claim against your business, believing that they have suffered loss or damage as a result of something that your practice has done.
They could claim that you have offered negligent advice. They could claim that you have provided negligent services or breached your professional duty. Professional indemnity insurance will cover you should such a claim occur.
When you register for ICPA membership, we’ll send you all the information you need to apply for your PII cover. Be sure to complete the form accurately and in detail so that your insurance is valid, and suits your needs.
The cover limit depends on your membership package: £300K for Pro members, £500K for Premium members, and £100K for Essentials members.
Yes. Our professional indemnity cover is suitable only for those with annual fees up to £250K – and there may be further restrictions depending on the type of work you conduct.
Yes, Professional Indemnity Insurance for accountants can cover your practice for claims relating to work you have carried out in the past.
Yes. We offer fully ICAEW-compliant insurance thanks to our partnership with AXA – an A-rated insurer.
Requirements will vary from organisation to organisation. However, most industry associations will require at least a minimum level of cover to protect you against any client allegations of wrongdoing.
The cost of professional indemnity insurance for accountants will vary depending on the insurer you choose, the level of cover required, and your practice’s risk level. However, premiums can start from as low as £5 per month.
To fully protect your practice against anything that could go wrong, additional types of cover you should consider include employers’ liability insurance, public liability insurance, office & business equipment insurance, cyber insurance, and directors’ & officers’ insurance.
For accountancy practices, a minimum of £5 million of employers’ liability insurance is required if you employ staff – even if employed on a casual or part-time basis.
Public liability insurance for accountants provides cover for any property damage or injuries caused by your business activities.
The AAT requires insurance on an “any one claim” basis, including civil liability cover. Limits depend on the practice’s gross fee income.
ACCA insurance requirements are based on your practice’s annual fee income. They have specific formulae to calculate the minimum level of cover required.
Yes. CIMA Members in Practice must hold professional indemnity insurance for accountants. However, CIMA does not specify the exact level of cover that is required.
Become an ICPA member by signing up today!
The benefits of joining ICPA are clear. On average, members save thousands a year with the ICPA, as well as benefiting from unrivalled support and resources.
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Contact Us for More Information
Looking for more information on our professional indemnity insurance cover – or on our other fantastic membership benefits? Get in touch!
If you’re not sure which ICPA membership package is right for you, we’re here to help. Drop us a line for personalised advice or a customised quote – we look forward to welcoming you on board!
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