{"id":8447,"date":"2024-09-01T10:00:00","date_gmt":"2024-09-01T09:00:00","guid":{"rendered":"http:\/\/www.policybee.co.uk\/blog\/?p=8447"},"modified":"2025-10-14T13:39:27","modified_gmt":"2025-10-14T12:39:27","slug":"insurance-for-icas-accountants","status":"publish","type":"post","link":"https:\/\/www.policybee.co.uk\/blog\/insurance-for-icas-accountants","title":{"rendered":"What insurance do ICAS accountants need?"},"content":{"rendered":"
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\"ICAS<\/figure>\n<\/div>\n\n\n

When it comes to protecting your business, you can never be too careful. ICAS think so, too. That’s why they insist on ICAS insurance for all their chartered accountants.<\/p>\n\n\n\n

Professional indemnity (PI) insurance<\/a> to be more precise. It pays for a legal expert to defend you if one of your clients alleges you’ve made a mistake or been negligent.<\/p>\n\n\n\n

It also covers any damages or compensation you’re liable to pay unhappy clients. So, a business-saver on two fronts. <\/p>\n\n\n\n

Here’s what ICAS<\/a> have to say about your accountants’ insurance<\/a> requirements.<\/p>\n\n\n\n

<\/p>\n\n\n\n

ICAS insurance requirements<\/b><\/h2>\n\n\n\n

Not only does ICAS wants its practicing accountants to have professional indemnity insurance. It requires them to have a certain level of cover in order to be financially protected. <\/p>\n\n\n\n

According to ICAS, if your accountancy firm’s gross income is more than \u00a3800,000, you need \u00a32 million PI cover for ‘any one claim’ or ‘in the aggregate’<\/a>.<\/p>\n\n\n\n

Less than \u00a3800,000, and you just need 2.5 times your annual fee income and<\/strong> no less than \u00a3250,000 worth of cover. <\/p>\n\n\n\n

However much you get, your policy should be from an ICAS-approved insurer<\/a>. We work with several ICAS participating insurers, so if you’re looking to buy your accountants’ insurance from us, you’re in luck.<\/p>\n\n\n\n

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Anything else?<\/h2>\n\n\n\n

ICAS members who\u2019ve stopped trading need two years’ run-off cover<\/a>. This covers claims involving past work but not current or new work. After that, members must take ‘reasonable steps’ to secure another four years’ worth of run-off cover. <\/p>\n\n\n\n

If your accountants’ firm has employees, ICAS asks that each one is named on your insurance policy. This means telling your broker or insurer each time you take on new staff. Don’t remove past employees from the policy though \u2013 you still need cover in case claims arise for work they did before they left.<\/p>\n\n\n\n

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Risk management <\/b><\/h2>\n\n\n\n

As well as having insurance for when things go wrong, ICAS wants its accountants to reduce their chances of a claim in the first place. Seems sensible.<\/p>\n\n\n\n

It recommends you assess your risk level at least annually, ideally to coincide with your policy renewal, but more frequently if you make major company changes.<\/p>\n\n\n\n

Here are a few of its risk management suggestions:<\/p>\n\n\n\n