Count on this
Professional indemnity insurance for accountants. Pick a package (if your turnover's under £50,000) or build your own.
When the numbers don't add up
Your clients expect the utmost care and attention. Not unreasonable considering it's their money in your hands.
But even the safest hands drop the ball now and then, and a mistake could cost you time, money and your reputation. PI insurance for accountants saves you all three.
If you’re a chartered or certified accountant, or a member of a professional accountancy association, professional indemnity insurance is compulsory.
But not just any old professional indemnity will do – it has to have an ICAEW approved policy wording. (You'll always get this if you get your cover from us.)
Oh, and if you have employees the law says you need employers’ liability insurance too.
To some extent, this decision is made easy by what ACCA, CIMA, ICAEW and various professional associations stipulate:
Income up to £200k: two and a half times your firm’s gross fee income for the last financial year or 25 times the largest fee, whichever is greater.
Income £200k-£700k: the aggregate of £300k and your firm’s total income or 25 times the largest fee, whichever is greater.
Income £700k or more: £1m or 25 times the largest fee, whichever is greater.
Income less than £600k: two and a half times your firm’s gross fee income.
Income more than £600k: £1.5m.
Sole traders have to have at least £50,000; all other firms at least £100,000. Perhaps oddly, there’s a maximum too: £1,500,000. Firms with large turnovers or specific client requirements can get more, however.
An ICAEW approved wording is industry standard and already has everything you need. The insurer has to note any changes they’ve made to this wording by including a ‘difference in conditions’ clause.
Otherwise, you need to make sure your cover is backdated at least six years. If you haven’t been trading for at least six years, backdate it to when you first started your practice. This is called ‘retroactive cover’.
Glad you asked.
The simple answer is: we know what we're doing. Professional insurance is all we do so we know what you need, even if you don't.
We also know that buying insurance can be, well, a bit of a pain. So we make sure getting yours is quick and hassle-free.
We do all that while treating you like a human being, too. You won't find a call centre here. Or a phone menu. And we've banned nonsense insurance jargon.
Plus, every insurance-related question you can think of is answered in our School of Risk, and you'll get our quarterly risk advice email – 'The Waggle' – to help you avoid problems in the first place.
If you're after a second opinion, have a look at our customers' feedback. They're the ones you should really listen to.