New ACCA PII Regulations

Plus there are other types of business insurance accountants might need or want.

Difficulty: Which is Harder, ACA or ACCA?

What are the PI requirements for ICAEW, AAT, ACCA, CIMA or CIA? 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.

Applicable law and jurisdiction

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. If you work for a large accountancy firm you shouldn't need to buy these coverages yourself, but you would need to buy the cover you want if you run your own accountancy business. For example, if you have any staff you're probably required by law to have a valid employers' liability insurance policy, if you see clients in person you may want public liability insurance and expensive computer equipment can be protected with business contents insurance. And any accountant, whether independent or working for a large firm, may even need to make changes to their personal car insurance if they visit clients or risk driving uninsured. Below we explain each type of accountant insurance in more detail, answer FAQs and show sample quotes to give you an idea of insurance costs for an accountant. Finally, we'll show you the best way to get quotes.

Getting a quote for professional indemnity insurance

Contact our friendly team today to discuss your insurance needs. Whether you call us bet in play betting odds for a chat or drop us an email. 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.

Professional indemnity cover

Here are a few tips on how to get better cyber insurance terms from an insurer. In partnership with Lockton, ACCA runs regular webinars providing insight and guidance into PII. Common claims trends and risk management of claims against accountants. You can register here to watch them on demand. Previous webinars looked at practical issues with engagement letters, and practical issues with AML. Professional Indemnity is one of the most important types of business liability insurance for accountants. It protects against clients who claim your professional advice or service was negligent. PII provides financial bet gambling websites sports protection by covering the cost of defending a claim and also any compensatory damages you're required to pay. PII is a requirement for members of The Institute of Chartered Accountants in England and Wales (ICAEW), the Association of Chartered Certified Accountants (ACCA), and other professional bodies. Not only that, but accountant PII has to meet certain requirements like meeting certain minimum limits of cover, being issued by a qualifying insurer and adhering to published minimum wording. You can read more at the ICAEW website here. A retail company receives a loan from a bank based on financial information that had been audited by an accountant. The company later defaults on the loan, and the financial information was subsequently found to be fraudulent. The bank sues the accountant for their loss, claiming negligence. A startup company grows, seeing its turnover exceed £90,000 during the 2025/2026 tax year. The company's accountant does not advise the startup to register for VAT despite exceeding the updated £90,000 VAT threshold threshold (which applies to the 2024/25 tax year onwards).

The client subsequently sues the accountant for the resulting tax liability and penalties. Depending on the size of your business, you may need or want other types of business insurance.

12. Audit-specific PI considerations

Since accountants give professional advice and service related to their clients' finances, professional indemnity insurance can help protect an accountant. And what other insurance will an accountant need? Below we'll discuss these questions and more, as each business's needs differ depending on the type of work done and if clients are seen in person or there are employees or business property to protect. Here's all you need to know to find the best insurance for your accountancy business. How much PII does an accountant need?

How many PI insurers are there?

Where can I get accountant insurance quotes? Which companies sell PII insurance to accountants? As with any occupation giving professional advice or service to clients, accountants may be obligated to buy professional indemnity insurance (PII). In fact, professional indemnity insurance is required for membership to the main UK accountancy bodies. Even when not required due to an exemption, accountants may prefer to have PII for protection. Do you own or rent office space?

Let's run through some of the options you might want to consider. If you hire employees or even an apprentice you'll probably need to buy employers' liability insurance (EL)—it's required by law in almost all cases. EL insurance can feel expensive compared to other types of business insurance but it protects against compensation claims by current or former employees if they fall ill or are injured because of their work for you. It covers both legal fees in defending yourself from a claim and any compensation you're required to pay.

Accountants PI Insurance Frequently Asked Questions

What does Accountants professional indemnity insurance cover? 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.

4.6 Disclosure obligations

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. 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. Employers' Liability Example: An employee suffers from a back injury due to work. They blame you for supplying poor equipment and sue you for negligence. Public liability insurance can be useful for accountants who meet with their clients in person, whether at the accountants business premises or whilst visiting clients at their homes or businesses. If a client (or for that matter any other third party) is accidentally injured or their property is damaged and they blame your business, they can sue you.

• Coverage must extend to all employees and subcontractors
• Exclusions for fraud or dishonesty are typically permissible
• Defence costs are usually included within the limit of indemnity
• Insurer must have a claims handling office in the UK

Public liability insurance protects accountants against accidental injury and damage claims made by third parties, covering both legal expenses to defend your business and compensation claims if you're found liable. How much public liability insurance would you want as an accountant? It's up to you but keep in mind that public liability insurance is commonly available with £1 million, £2 million, £5 million and £10 million of cover in the UK. Bodily Injury: A client visiting your accountancy offices slips and falls on a freshly mopped floor, seriously injuring themselves.

• Claims-made policies are the standard for professional indemnity
• Extended reporting periods (ERPs) may be required for prior acts
• Insurers must be rated at least 'A' by a recognized rating agency
• Dual insurance is not permitted to meet the minimum limit
• Aggregate vs any one claim limits must be clearly understood
• Directors' and officers' liability is not a substitute for PI

Property Damage: A fire in your office damages a neighboring business. Contents insurance can cover you against accidental damage, loss or theft of valuable equipment, furniture & furnishings, computers and other business items that can be expensive to replace. Having contents cover not only protects you financially for the value of these goods, it also helps get you back up and running if you do face a physical disaster like theft, fire or flood.

Insurance for accountants: FAQs

You can register here to watch those on demand. Webinar on AML and the risks to your insurance cover Webinar on AML and the risks to your insurance cover Webinar on engagement letters and the risk to your insurance cover Webinar on engagement letters and the risk to your insurance cover LEP will arrange cover to meet with your regulatory requirements under the ICAEW, ACCA and ICAS, or other, as a minimum. We do not believe that there is a one solution fits all product so any Minimum Terms & Conditions are exactly that. We will work with you to understand any unique business requirements that you may have in providing a bespoke Professional Indemnity Insurance solution. We are mindful of your evolving world and your need to be offering services beyond that of the traditional accountant.

Telegraphic Transfers and Faster Payments

This may include outsourcing services, corporate finance or software management to name a few. There are also the additional risks that may be associated with your membership of an accountancy network or international associations. As a client of LEP you will receive a proactive approach to your insurance requirements. We can undertake a confidential review of your current arrangements and work with you to ensure that you have best value and cover available for your business. Rated 4.7 out of 5 stars on Reviews.co.uk Over 300,000 quotes completed per month The guidance on this site is based on our own analysis and is meant to help you identify options and narrow down your choices. Contents cover can be important for accountants, whether you rent or own your business premises. A fire in your accountancy office destroys everything.