Making a mistake in a piece of work could cause a financial loss to your client, and they may take legal action against you to recover their losses.
| Step | Description | Deadline (Relative to Renewal Date) |
|---|---|---|
| 1. Review Practice Changes | Assess new services, staff changes, fee income increase. | 8-10 weeks before |
| 2. Contact Broker/Insurer | Initiate renewal discussion and request updated quotation. | 6-8 weeks before |
| 3. Complete Proposal Form | Update all information accurately and comprehensively. | 4-6 weeks before |
| 4. Review Renewal Terms | Check coverage, limits, exclusions, and premium. | Upon receipt of documents |
| 5. Accept and Pay | Formally accept the policy and arrange payment. | Before expiry of current policy |
| 6. Notify ACCA | Upload new certificate of insurance to member's account. | Within 7 days of renewal |
This cover is crucial when it comes to protecting accountants.
- Keep proof of insurance accessible, either in physical or digital form, for presentation to authorities.
- Ensure all named drivers on the policy are disclosed and meet the insurer's eligibility criteria.
- Pay insurance premiums on time to avoid policy lapse and potential legal penalties.
- Understand the policy's territorial limits and ensure coverage applies for where you drive.
It’s generally considered essential protection for accountants and is usually a requirement of your regulatory body or membership association.
- Understand the claims process, including how to contact the insurer's emergency helpline.
- Know what is not covered (exclusions) such as wear and tear, mechanical breakdown, or damage from certain events.
- Check if the policy provides a guaranteed hire car following a non-fault accident.
- Be aware of the insurer's approved repairer network and any implications for using it.
See our ‘Frequently Asked Questions’ section below to learn more about how AAC, ATTA and CIMA requirements can affect the type of cover you should be applying for.
What type of insurance do accountants need?
Under the ICAEW Professional Indemnity Insurance Regulations (effective September 2024), the previous £100,000 minimum has been abolished. For 2026, most chartered accountancy firms are now required to maintain a minimum limit of indemnity of £2 million for any one claim and in the aggregate. However, for smaller practices with a gross fee income of less than £800,000, the minimum limit is calculated as two and a half times the firm's gross fee income, subject to a absolute minimum of £250,000. Additionally, firms must ensure their policy excess does not exceed the higher of £3,000 or 3% of their gross fee income. As of 2026, the ACCA has simplified its requirements into two primary income bands, having increased the absolute minimum limit from £50,000 to £100,000.
What is the difference between verifiable and non-verifiable ACCA CPD?
For firms with a total income below £600,000, the required PII limit is the greater of bet free bets no deposit uk real money two and a half times the firm's total income or £100,000. For firms with a total income of £600,000 or more, the minimum limit of indemnity is now fixed at £1.5 million. Note that the old '25 times the largest fee' multiplier has been removed from the standard calculation to simplify compliance. Accountants who are not chartered technically don't have any obligation to buy PII. That said, it is widely recommended for all accountants to have professional indemnity insurance. In the meantime, here are some examples of claims that accountants’ professional indemnity insurance could protect against: Failing to inform a client that their business has breached the VAT threshold Failing to properly prepare and file end of year accounts Providing incorrect advice regarding a company structure Professional indemnity Insurance for accountants is available with limits ranging from £50,000 to £5m.
What to do next
Covers such as bookkeepers’ insurance for instance, will protect you allegations of poor or incorrect bookkeeping, or the theft of a laptop containing important and confidential client data. Even with many years' experience in accountancy, an unexpected circumstance could see a claim brought against you. For instance a client could claim that you have breached their confidentiality, while another might suffer an injury at your premises and hold you responsible. Without comprehensive accounting insurance in place, your business could struggle to survive such claims. Other unexpected circumstances, such as the theft of computer equipment, or a fire or flood at your business premises, could be financially damaging for your business. Starting at £5 per month* (depending on your business requirements), arranging accountants insurance with Markel Direct is fast and easy.
| Member Type / Firm Size | Minimum Limit of Indemnity (per claim) | Minimum Excess (per claim) | Policy Basis |
|---|---|---|---|
| Practising Certificate Holder (Sole Practitioner) | £100,000 | £2,500 | Civil Liability |
| Firm (1-3 Partners) | £250,000 | £5,000 | Civil Liability |
| Firm (4-10 Partners) | £500,000 | £10,000 | Civil Liability |
| Firm (11+ Partners) | £1,000,000 | £25,000 | Civil Liability |
Our simple quote form will collect a few details about your business and provide you with a quotation for a range of covers.
Why should accountants buy cover?
As such, when you are contemplating retirement or cessation of practice, you must also consider the importance of addressing the continuing need for PI cover and be sure that it is placed properly. We therefore recommend that in the year or so you before you intend to close down or sell your practice, you must ensure that your PI cover is placed with a stable, A-rated insurer and that you engage the services of a specialist PI insurance broker such as Lockton to assist you with the vagrancies of the PI market. Should you be considering the sale of your practice, you also must give due consideration to run-off cover. Again, Lockton can readily assist you (or the potential buyer) with this to ensure that past liabilities can be protected appropriately. Finally, and by way of immediate comfort to those accountants who are considering retiring from ongoing practices, there is better news: their past liability should continue to be covered by the firm’s PI policy on an ongoing basis.
How is the premium calculated?
Often after retirement, many accountants continue to practise as consultants to the firm and the majority of PI policies will continue to provide cover for such work. Nevertheless, in each scenario, we strongly suggest that the policy wording be reviewed to make sure that cover is correctly in place; again, Lockton can help with this. Finally, if you have any questions, please contact your Lockton account manager for further advice or email accountants@uk.lockton.com. Lockton is ACCA’s recommended broker for professional indemnity insurance. The guidance on this site is based on our own analysis and is meant to help you identify options and narrow down your choices. You can then select which covers you want to include in your policy, ensuring you only ever pay for the cover you want and no unnecessary extras. There are no hidden fees or cancellation charges when you arrange cover with Markel Direct, and you can spread the cost of your policy over 10 interest free instalments.
What claims actually look like
We do not advise or tell you which product to buy; undertake your own due diligence before entering into any agreement. The amount of insurance an accountant needs depends on whether or not they're a chartered accountant, with which professional body they hold membership and how much they collect in fees. Let's look at how these factors affect the limit of professional indemnity insurance (PII) an accountant needs. Rated 4.7 out of 5 stars on Reviews.co.uk Chartered accountants must have a professional indemnity insurance (PII) policy, and this policy must meet certain requirements. For starters, PII for a chartered (or chartered certified) accountant must be considered 'qualifying insurance'.
Occurrence-Based Policies
Underwriters issuing qualifying insurance agree to abide by certain minimum terms on accountant PII, to make sure all chartered accounts maintain a certain standard of protection. Next, chartered accountants have to abide by certain minimum limits of insurance as stipulated by their accountancy body membership (e.g., ICAEW, ACCA). The required amount of professional indemnity dictated by these bodies is linked to fee income (both annual fee income and largest client fee income). BUT many accountancy businesses need to hold more depending on their fees and the work they do. Let's have a look at the minimum PII requirements as stipulated by the Institute of Chartered Accountants in England and Wales (ICAEW) and the Association of Chartered Certified Accountants (ACCA), since these are the two largest accountancy bodies in the UK. Professional indemnity insurance for accountants is often considered a priority.
ACCA's Outcomes-Based CPD Cycle
Accounting business insurance can protect you and bet best betting offers sign up make the difference. Most accountancy associations (including the ACCA, AAT, CIMA and ICAS) require members to hold a minimum level of accountants’ professional indemnity insurance to protect you if a client alleges you have made a mistake in your work - such as not filing their accounts on time, making an error in a VAT return or providing poor advice in relation to a self-assessment. Our specialist accountants’ insurance can be tailored to provide cover however you need it, as well as giving you complementary access to a 24-hour legal advice helpline and legal hub for any business-related legal issues. Professional indemnity insurance for accountants covers the cost of defending your business against allegations of professional negligence (such as giving your client incorrect or wrongful advice). If your defence should be unsuccessful, it also covers the cost of damages awarded against you. It pays for your legal fees as well as any compensation which you may be liable for in the event of an allegation of professional negligence. Public liability insurance for accountants is another important cover to consider, protecting your business in the event someone is injured (or their property damaged) as a result of a mistake you make.
Accountants Guide to Professional Indemnity Insurance
To figure out how much you need, you can still follow the guidance issued by the ICAEW and ACCA or speak with a specialist broker or agent regarding limits of insurance. We've calculated the minimum PII limits for accountants of various sizes according to ACCA and the proposed new ICAEW requirements in the table below. As you can see, we varied both the total annual fees and the largest fees earned from one client in the past year (which factor into the ACCA calculations). While these figures show a range of accountancy business sizes, if your business size is not displayed here then you can use the formulas shown in the previous section to calculate what you would need. Use these figures as a rough-and-ready guide to give you an indication of what is basically required; calculating the amount of insurance an accountant needs can certainly be a complicated answer.
What is professional indemnity insurance in simple terms?
A professional insurance specialist can help also you figure it out if you still have questions. Rated 4.8 out of 5 stars on Reviews.co.uk Specialist insurance for accountants from £5 a month* Fast, easy online quote in 90 seconds Fast, easy online quote in 90 seconds Accountant insurance covers a great deal of risks that could face you and your business, but from professional indemnity insurance through to employers’ liability insurance policies and more – Markel have you covered. Accountants insurance is an important form of business insurance designed to protect your business against the unexpected. It’s worth noting that it’s not a single product, but rather a group of covers that can be tailored to suit you and your business needs. It can protect you against the costs involved in defending allegations of professional negligence (such as making a mistake in a piece of work), causing injury to a third party, or damage to vital equipment (or property) you use for business.