Accountants Insurance
Accountant's professional indemnity insurance starting from £425 annually
What is accountants insurance?
Cover protects accounting professionals and their firms from risk and liabilities during the provision of their services. Accountant's insurance will typically includes Professional Indemnity, Public Liability, Employers' Liability, Cyber Insurance, and Directors and Officers (D&O) Insurance.
Accountants are entrusted with sensitive financial information, perfom an advisory role and provide financial guidance which carries significant responsibility, which means any errors or allegations of negligence can lead to serious financial damage. Adequate business insurance for accountancy firms is essential to mitigate their professional risks.
Why do accountants need insurance?
Accountancy firms need professional indemnity insurance because they are exposed to errors or miscalculations in the provision of technical or advisory services that can have far reaching consequences. Mistakes are not uncommon and can have costly implications - if your accountancy firm is unfortunate enough to become a target, even if the allegation has no merit, it can be very costly to defend.
Allegations of a professional wrongdoing often involve complex litigation when professional accountancy services are offered which means the stakes can be high in defending your interests. Cover can include a wide range of professional activities, including but not limited to audit, accounting, booking keeping, payroll services, tax consultancy, and company secretary work.
Working with the leading insurers for accountants:
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Accountants professional indemnity insurance protects against acts, errors or omissions, including:
Why Get Indemnity accountant's insurance?
We work with a wide range of insurers that can provide competitive and bespoke quotes tailored to meet your needs. As a specialist professional indemnity insurance broker we can assist accountancy firms with up to £100m turnover. Ensure your business purchases the most suitable and cost-effective accountants insurance.
Please call us on 0345 625 0711 or arrange a call back to discuss your needs
Types of insurance accountants should consider:
Professional Indemnity
This is crucial for accountants as it covers claims arising from errors, omissions, or negligence in the provision of your professional services. For example, incorrect tax advice or accounting errors resulting in client financial loss could trigger a substantial claim. Professional indemnity insurance will cover the legal costs associated with defending a compensation claim and will cover any damages, awards, or settlements.
Public Liability Insurance
At your firm, if you have clients or members of the public visit your premises, or if you visit clients at their premises, it's worth considering public liability insurance. Public liability insurance will provide a legal defence and cover the cost of damages from a client or member of the public that has suffered bodily injury or property damage. This could include a client slipping and suffering a back injury at your premises. Without adequate public liability this type of accident can become very costly.
Employers Liability Insurance
Nearly all accountancy firms employ staff, therefore you will be required to purchase employers liability insurance. The cover will provide a legal defence and cover the cost of damages from an employee who has suffered bodily injury or illness whilst working for you. An employers liability claim could entail an employee falling on the stairs as a result of a loose carpet.
Cyber Insurance
Given the sensitive nature of financial data handled by accountants, cyber insurance covers losses stemming from cyber-attacks, data breaches, or system downtime. Cyber threats pose a significant risk in today's digital landscape, which are now commonly excluded under professional indemnity insurance policies. Cyber insurance protection can cover your legal liability and expenses to mitigate the impact of a theft of customer data. While, crime insurance can cover the financial loss from a fraudulent theft of funds.
Management Liability
Directors and Officers Insurance provides protection against claims alleging wrongful acts, mismanagement, or regulatory breaches by firm's management team and board of directors. It will protect individuals for wrongful acts, by providing cover for defence costs, damages, settlements, awards, and insurable fines.It safeguards personal assets and defends reputations.
Property Insurance
Typically included under an Office Insurance policy, can include protection for contents, equipment, and business interruption cover, protecting the physical assets and operational continuity of the accounting practice.
Cost of accountants insurance
Insurance costs vary based on practice size, turnover, claims history, cover limits, and specific risks associated with the practice. The nature of the work you undertake will have a direct bearing on your professional indemnity premium.
Medium to high hazard accountant activities may come under increasing pressure to accept premium increases. Your PI insurance broker should engage with you early in the renewal process to ensure a sufficent remarketing exercise has been undertaken.
How to choose the right insurance provider?
Selecting the right provider involves considering the insurer's reputation, financial stability, policy terms, and claims handling efficiency. Accountants should seek detailed answers regarding cover specifics, exclusions, claims processes, and support services offered.
Policy Cover
Claims Handling
Premium Cost
At Get Indemnity™ chartered accountant insurance starts at £425 per year or £35.41 per month
As specialist professional indemnity insurance brokers, we can accommodate a wide range of needsAccountants insurance can provide cover for actuaries, auditors, bookkeepers, insolvency practitioners, management consultants, tax advisors and payroll specialists
Accountancy activities which pose a greater risk of PI insurance claims:
Lower risk activities:
Medium risk activities:
• General Insurance work
• Trusteeships / Directorships
• Financial Services work
• Insolvency work
• Corporate Finance
High risk activities:
• Audit & Accountancy - Publicly Listed companies
• Mergers & Acquisitions
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Frequently asked questions
Who are the professional accountant governing bodies?
• The Association of Chartered Certified Accountants (ACCA)
• The Institute of Chartered Accountants in England and Wales (ICAEW)
• The Chartered Institute of Management Accountants (CIMA)
• The Institute of Chartered Accountants of Scotland (ICAS)
• The Institute of Chartered Accountants in Ireland (ICAI)
• The Chartered Institute of Taxation (CIOT)
What are the market conditions for accountant's insurance?
At get indemnity™ we're starting to see a hardening of the market with less insurers willing to compete for professional indemnity insurance, especially if your business has paid claims or works in higher risk activities. There remains a number of specialist insurers that want to grow their portfolios within this space for well managed and claims free accountants. Please give one of team a call on 0345 625 0711 to discuss further.
What common exclusions are found in accountants insurance policies?
Accountants should be aware of typical policy exclusions, including deliberate fraud, intentional wrongdoing, pre-existing issues, and uninsurable regulatory fines or penalties.
How to avoid accountancy insurance claims?
Effective risk management includes maintaining accurate documentation, thorough record-keeping, regular staff training, robust cybersecurity protocols, and clear communication with clients. In addition it is best to promptly report potential claims and cooperating fully with insurers helps ensure efficient claims handling and resolution.
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