Terms & Conditions

Don't forget it was a third party claim that sunk BDO by them 'standing by their accounts'. My renewal from Bluefin this month was £200.20. inc IPT, that covered fees above the £2,000 the OP mentioned.

The ACCA levels

It's like saying because you only drive your car for 2,000 miles a year, any accidents you have won't be serious. It should never be a "mandatory" insurance anyway, if someone chooses not to have it, that's their business. Except it's not just their business if they get it wrong - they could bring a client's business down. The mandatory PI is to protect the client, not the accountant. Spurious claimsIt's not enough to do your job properly.

4.5 Run-off

You need PI to defend against spurious claims. It's not uncommon for accountants to get blamed for stuff that is the clients fault and it can be very costly to defend. To be more specific I should have said that "the reason why the professional bodies make the holding of PI cover mandatory .. is about protecting etc." Yes in the event of a claim the accountant will be able to retain assets that he might have lost without insurance. PI cover usually has a minimum level of cover and does not start at nil. Maybe the OP needs to try to win one more client to cover the extra cost, at £200 that is all that would bet betting sites uk best be needed.

• 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

However I am actually not renewing with them( nothing wrong with Bluefin) as I am moving my cover to the ICPA offering ( I joined them during the last year) .

PII Limit of Insurance Tables for Accountants

We are a division of Markel International, a Lloyd’s of London market insurer that wrote gross premium totals of £2.4bn in 2023 As a specialist insurer of accountants and bookkeepers, we provide a range of useful services for you to access, included as standard with certain covers: PI insurance seems to be annoying in that it doesn't cater for accountants who may be literally practising on the side for no more than say £2k worth of gross fee income. I'm considering doing so in the future and I know about the usual annoyances with ACCA and their (IMO biased) certificate requirements for even part time accountants, but PI insurance is difficult to find for less than £15 a month and I find it silly that over 10% of the gross fee income should be sucked away by an almost un-necessary insurance policy (given the size of the people who have asked me being so micro it's barely a blip on Companies House). Does anyone know a provider of PI insurance that can keep the PI insurance to single digit figures per month? Comments for this post are now closed. Trafalgar Insurance Company offer a reduced rate to AAT Members in Practice (about £50 a year), might be worth looking at them.

10.2 Group scheme considerations

i use hiscox _ they have a scheme for Att members, and could have something. Less than 10% of your gross fee income of £2k, rather than more? Insurance and professional body fees are necessities if you want to offer your services to the public. Even at £15pm, it’s not really expensive for a qualified accountant engaging in practice, no matter how small that practice is. Maybe the cost isn't the problem, but your very small fee income is. Whilst the monthly sub of £55 is obviously more, when looked at in the round re online publication access, Anti Money Laundering software access etc plus other perks, it appeared to me reasonable value. I'm thinking out loud....does this work require a Practicing Certificate as I recall a link between holding this and the PII requirement? (I stand to be corrected, and aren't suggesting going without insurance is advisable). There would be no point, Farmer Giles, in having comprehensive motor insurance if your tractor doesn't leave the field? We offer specialist advice for your business.

What insurance do accountants need?

a vote for Trafalgar are excellent and so our Qdos I use Trafalgar £139.00 for year which covers and they use Hiscox Public Liability Insurance = £1,000,000 any one claim Legal Expenses £25000 any one claim £500,000 aggregate I am sure your professional body will offer the same . I use a different company for employees liability. Unfortunately they [Trafalgar Insurance Company for AAT cover] won't cater for ACCA because it falls outside the scope - quite how it does is beyond me, it's just a bunch of letters after all, but hey bottom line, they're being nitpicky and I'm back to square one - was worth a try though. I'll give them [Hiscox for ATT cover] a try - but I bet they'll go the same way as the other one. It seems for whatever odd reason simply being Chartered means they have the right to jack your cover up by £200+ a year.

Replies (31)

It's still the same level of income and risk for gods sake, if anything the premium should be LOWER because you're less likely to get it wrong!! You say that you are ACCA qualified and yet don't appear to understand that the risks inherent in the work of a chartered certified accountant are completely different from those of an accounting or tax technician. By your calculations, a consultant surgeon's premiums should be lower than a school nurse because he's "less likely to get it wrong"! When I started out in the profession, an understanding of how to assess risk was a fundamental part of my training. Perhaps you can trade through a limited company as a way of reducing your personal exposure ? Our PI insurance experts have a wealth of experience, and work with a wide range of insurers to find you the right cover on competitive terms. PI insurance provides you with protection should your client claim they have suffered financial loss as a result of your professional negligence, which could involve: Breach of a professional duty of care. Your PI insurance policy should provide adequate cover for the services your accountancy business offers and the unique risks you face.

How to Get Professional Indemnity Insurance with ICPA

If you use a company, do bet online betting bonus offers you need PI cover ? Yes of course you need PI cover if you practise as a qualified accountant through a company. Just think how many millions the big 4 could save, never mind the rest of the profession, if they incorporated, if doing so meant no PI cover was required. PI cover is about protecting clients not accountants' assets. Please can you expand on your statement that 'PI cover is about protecting clients not accountants assets'.

Third party rights

Do you mean that, in the event of a claim, there is some money available to correct the situation ? Affordable PI coverI was in a similar situation , with low fee income many of the Insurers seem to eat a lot of the profits, I eventually got suitable cover from Simply Business and later Caunce O'Hara - either might suit you. this is literally a side thing for friends of friends . That is to say the highest possible risk for he insurer. Regardless of your own position the "bit on the side" accountant is often very inexperienced, working outside areas of their expertise and has no review process. Civil liability (such as damages and costs) for breach of duty. Legal fees and expenses in defending a claim.

• 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

Helplines to provide guidance on managing risks. Our dedicated team of PI insurance experts is focused on providing a high standard of service to the professional services sector.

9. IFA Practising Certificate PI requirements

For about £180 you get £300k worth of cover with hiscox. Just take another few jobs to justify the fix costs. If you think £50 for PI cover is too much have you looked at any practice software yet. Its not about level of fee income they are covering its the cost of putting right a mistake you could make, £50 policy wouldnt buy you much cover. My boat is only worth about £10k but i was required to have £3m worth of cover on it to keep it in the marina.

Can I switch from ACCA to ACA (or vice versa)?

This was not to cover the replacement cost if it sank but to cover the potential damage I could cause if I drove it into someone else, (and they probably saw how I drove it). The same principle applies to motor insurance of course. Although one may only be dealing with friends of friends, they will soon stop being your friends if they have suffered a loss that they think is your fault. Also its not just clients that might make a claim. Presumably those clients will be asking you for mortgage references, or they will be selling their businesses and so third parties will be putting reliance on your accounts. Working with Marsh Commercial provides you with additional benefits such as: An in-house team of specialist claims handlers. Free 24-hour legal and counselling advice helplines.

• 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

Free tax advice helpline for you and on behalf of your clients.

Insurer Category	Acceptability for ACCA	Minimum Financial Rating (e.g., S&P)	Policy Requirements
UK Admitted Insurer	Fully Acceptable	A-	Must meet ACCA minimums
EEA Insurer (Passporting)	Acceptable	A-	Must meet ACCA minimums
Lloyd's of London Syndicate	Acceptable	Secure Syndicate	Must meet ACCA minimums
Non-EEA Insurer	Case-by-case approval	A	Stricter review, may need reinsurance

As part of Marsh, global leader in insurance broking and risk management, we have the ability to evolve your cover as your business grows. We support a full range of accountancy clients including those engaging in more complex activities, such as: Policy exclusions and restrictions may exist based on your unique requirements.

Table of contents

So a high risk prospect to take on. You should therefore expect a chunky premium. The insured risk is not limited to your fees, but what you may cost your clients. no insurer goes below £50,000 cover and wants loads of cover. Insurers should maybe look at the facts more and rely less on their automated checklist calculating their premiums.

What’s included in Hiscox professional indemnity insurance for chartered accountants?

That is because they are aware of the ACCA PI regulations. PI minimum cover per claim required for turnover up to £200,000 is the higher of: • 2.5 times the total income; • 25 times the largest fee raised during the previous accounting year; and • £50,000 I was having the same issue while choosing between the best Insurance and I was professionally guided by the people on the following website. Do Visit and you'll find the solution of your problem. I never understand why practitioners equate low fee income with requiring a low level of cover. It doesn't matter if your fee income is only £2,000 - you could still get the doomsday claim and £50K will go nowhere. In today's increasingly litigious world, ACCA tutors might wonder if they need Professional Indemnity Insurance to protect their professional practice. While it's not a legal requirement, this insurance provides essential protection against claims of professional negligence or errors in advice, which can lead to significant financial losses.