{"id":8412,"date":"2014-07-02T12:00:37","date_gmt":"2014-07-02T12:00:37","guid":{"rendered":"http:\/\/www.policybee.co.uk\/blog\/?p=8412"},"modified":"2025-10-14T13:40:50","modified_gmt":"2025-10-14T12:40:50","slug":"insurance-cima-accountants","status":"publish","type":"post","link":"https:\/\/www.policybee.co.uk\/blog\/insurance-cima-accountants","title":{"rendered":"CIMA insurance for accountants explained"},"content":{"rendered":"
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\"CIMA<\/figure>\n<\/div>\n\n\n

It’s easy to see why many accountants join professional bodies like the Chartered Institute of Management Accountants (CIMA). But did you know that before you can sign up, you have to get some CIMA insurance?<\/p>\n\n\n\n

Being a member of an organisation like CIMA proves you’re on top of your game. It also reassures your clients that your work complies with the highest ethical and professional standards.<\/p>\n\n\n\n

Part of those high standards means having CIMA professional indemnity insurance (PI). It protects your business by paying for an expert solicitor to defend you and covering any damages if an unhappy client claims your mistake or poor work cost them money.<\/p>\n\n\n\n

Here’s what CIMA<\/a> has to say about it.<\/p>\n\n\n\n

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Who should your CIMA insurance cover? <\/b><\/h2>\n\n\n\n

It may sound obvious, but if you’re a sole practitioner with no other employees, CIMA says your PI should be in your name, including any trading names.<\/p>\n\n\n\n

However, if you\u2019re a practice employee, your insurance policy must name every practicing partner <\/b>or principal in your firm. This is so your policy covers all members of the firm.<\/p>\n\n\n\n

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How much CIMA professional indemnity insurance do you need?<\/h2>\n\n\n\n

Unlike other professional bodies for accountants, CIMA isn’t fussy. It doesn’t specify a minimum level of cover, or insist on you using a particular insurer. It just wants you to have some insurance.<\/p>\n\n\n\n

Although ultimately you’ll have to decide how much cover to opt for, CIMA offers some useful advice .<\/p>\n\n\n\n

It recommends asking an insurer or broker about the best level of cover. As an independent broker ourselves, we’d say at least 2.5 times your annual fee income is a good place to start. The more the better, frankly. <\/p>\n\n\n\n

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Consider your clients<\/b><\/h2>\n\n\n\n

When assessing your insurance needs, CIMA recommends giving some thought to your clients. It’s a simple and effective way of minimising your risk of a claim. <\/p>\n\n\n\n

Thinking about the following may help identify if your client carries a higher-than-average risk of triggering a claim:<\/p>\n\n\n\n