Thinking of closing or selling your practice?

Contents cover can be important for accountants, whether you rent or own your business premises.

• Insurance requirements can be stipulated in the Articles of Association for limited companies.
• Shareholders' agreements may mandate specific Directors' and Officers' Liability cover levels.
• Bank loans or financing agreements often require asset and key person insurance as collateral.
• Landlord lease agreements frequently require tenants to have Public Liability insurance.

A fire in your accountancy office destroys everything. Your landlord is responsible for covering the damage to the building; you claim on your business contents insurance for the loss of your computers, printers, office furniture, phones and other business property. Declaring business use to a personal car insurance provider is critical for covering driving between multiple work locations or to see clients.

• Check if your business needs Professional Indemnity insurance as mandated by your professional body.
• Review client contracts, as they often specify minimum insurance levels for Public Liability.
• Assess the value of assets and potential business interruption to determine adequate property insurance.
• Consider Cyber Liability insurance, increasingly required in contracts for handling client data.

If you use your car in these ways but don't declare business use, then your regular car insurance (e.g., social, domestic and pleasure driving, commuting use) could be deemed invalid and you'd essentially be driving uninsured. Read more in our article What Car Insurance Does an Accountant Need?.

Importance of run-off cover

Where can I get accountant insurance quotes? Which companies sell PII insurance to accountants? As bet bookmakers online free with any occupation giving professional advice or service to clients, accountants may be obligated to buy professional indemnity insurance (PII). In fact, professional indemnity insurance is required for membership to the main UK accountancy bodies. Even when not required due to an exemption, accountants may prefer to have PII for protection.

Do I still have to pay if I have ceased trading?

Plus there are other types of business insurance accountants might need or want. If you work for a large accountancy firm you shouldn't need to buy these coverages yourself, but you would need to buy the cover you want if you run your own accountancy business. For example, if you have any staff you're probably required by law to have a valid employers' liability insurance policy, if you see clients in person you may want public liability insurance and expensive computer equipment can be protected with business contents insurance. And any accountant, whether independent or working for a large firm, may even need to make changes to their personal car insurance if they visit clients or risk driving uninsured. Below we explain each type of accountant insurance in more detail, answer FAQs and show sample quotes to give you an idea of insurance costs for an accountant. You have an at-fault accident while driving your personal car to visit a client to go over their year end accounts.

Does PI cover work done before joining the practice?

Finally, we'll show you the best way to get quotes. Professional Indemnity is one of the most important types of business liability insurance for accountants. It protects against clients who claim your professional advice or service was negligent. PII provides financial protection by covering the cost of defending a claim and also any compensatory damages you're required to pay. PII is a requirement for members of The Institute of Chartered Accountants in England and Wales (ICAEW), the Association of Chartered Certified Accountants (ACCA), and other professional bodies.

6.3 Heads of damage in tax PI claims

Not only that, but accountant PII has to meet certain requirements like meeting certain minimum limits of cover, being issued by a qualifying insurer and adhering to published minimum wording. You can read more at the ICAEW website here. A retail company receives a loan from a bank based on financial information that had been audited by an accountant. The company later defaults on the loan, and the financial information was subsequently found to be fraudulent. The bank sues the accountant for their loss, claiming negligence. Luckily, you had previously declared and paid for business use on your car insurance policy so your insurance covers the damage to your vehicle and another vehicle involved in the crash.

Professional indemnity insurance

They blame you for supplying poor equipment and sue you for negligence. Public liability insurance can be useful for accountants who meet with their clients in person, whether at the accountants business premises or whilst visiting clients at their homes or businesses. If a client (or for that matter any other third party) is accidentally injured or their property is damaged and they blame your business, they can sue you. Public liability insurance protects accountants against accidental injury and damage claims made by third parties, covering both legal expenses to defend your business and compensation claims if you're found liable. How much public liability insurance would you want as an accountant? Roughly speaking, legal expenses policies cover many situations that are not covered by other types of liability insurance.

Key areas of risk for Accountants

We’re here to answer any questions you have and guide you towards the cover that’s right for you. Just give us a call on 0345 222 5391 and we'll be happy to help. In the meantime, remember that budgeting for insurance (at whatever level of cover) is always going to be easier – and cheaper – than budgeting for a disaster. And that's why we advise you to buy the highest level of cover you can afford. Rated 4.7 out of 5 stars on Reviews.co.uk Over 300,000 quotes completed per month The guidance on this site is based on our own analysis and is meant to help you identify options and narrow down your choices.

Business Use Car Insurance for Accountants

Since accountants give professional advice and service related to their clients' finances, professional indemnity insurance can help protect an accountant. And what other insurance will an accountant need? Below we'll discuss these questions and more, as each business's needs differ depending on the type of work done and if clients are seen in person or there are employees or business property to protect. Here's all you need to know to find the best insurance for your accountancy business. How much PII does an accountant need? Business legal expenses insurance (LEI) gives you access to an expert legal team and pays your legal defence costs in certain situations up to the policy limit for situations such as: Legal Expenses Insurance Example: You have a dispute with a client that ends in them not paying you for your work.

Required levels of professional indemnity insurance

A startup company grows, seeing its turnover exceed £90,000 during the 2025/2026 tax year. The company's accountant does not advise the startup to register for VAT despite exceeding the updated £90,000 VAT threshold threshold (which applies to the 2024/25 tax year onwards). The client subsequently sues the accountant for the resulting tax liability and penalties. Depending on the size of your business, you may need or want other types of business insurance. Do you own or rent office space?

1.3 Long claim tails

Let's run through some of the options you might want to consider. If you hire employees or even an apprentice you'll probably need to buy employers' liability insurance (EL)—it's required by law in almost all cases. EL insurance can feel expensive compared to other types of business insurance but it protects against compensation claims by current or former employees if they fall ill or are injured because of their work for you. It covers both legal fees in defending yourself from a claim and any compensation you're required to pay. Employers' Liability Example: An employee suffers from a back injury due to work. Your LEI insurance covers the cost of legal assistance to pursue a claim against the client. Cyber insurance can be an important aspect of business insurance coverage for an accountant or any other profession that holds sensitive client information such as names, addresses, banking information and private financial details. Cyber insurance covers losses related to hacking, data breaches, viruses and other cyber crimes, paying both direct costs incurred by your business and also claims from third parties that were harmed by an attack on your business.

Is HMRC tax investigation cover the same as PI?

It's up to you but keep in mind that public liability insurance is commonly available with £1 million, £2 million, £5 million and £10 million of cover in the UK. Bodily Injury: A client visiting your accountancy offices slips and falls on a freshly mopped floor, seriously injuring themselves. Property Damage: A fire in your office damages a neighboring business. Contents insurance can cover you against accidental damage, loss or theft of valuable equipment, furniture & furnishings, computers and other business items that can be expensive to replace. Having contents cover not only protects you financially for the value of these goods, it also helps get you back up and running if you do face a physical bet best uk gambling sites 2026 disaster like theft, fire or flood. Cyber Insurance Example: You open an email attachment with a virus that allows hackers to gain access to company files and sensitive client information. Cyber insurance pays for experts to deal with the situation, including paying a ransom, credit score monitoring for customers, etc. An age-old question—how much insurance do I need?

Professional indemnity insurance for chartered accountants' level of cover

AKA 'risky' areas that cost insurers lots to fix. So it’s really important you read your policy wording carefully and speak to your insurer (or a broker like us) if you think you need more cover. A word of warning about reducing your level of cover. We're sometimes asked about this by customers who've been working on high-value contracts that have come to an end. The thing about reducing your level of cover is that it changes your policy retrospectively too.

15.4 Run-off after an IP ceases practice

You should always think about your previous work and consider whether your insurance is still enough to pick up any claims that could arise from it. Most claims come from jobs and contracts you’ve already completed and they’ll be subject to the level of cover you have now, not what you had when the work was done. We can’t give a recommended level of professional indemnity insurance in this blog. As you’ve seen, it depends on your individual circumstances. We know how confusing getting the right PI insurance can be, though. Professional indemnity insurance for accountants is typically offered with a limit of insurance between £50,000 and £5 million, but large firms can source higher limits with excess cover. The recommended amount of professional indemnity for an accountant is typically linked to the level of its fee income. Calculating the amount of insurance an accountant needs can certainly be a complicated answer and a broker or insurer can help you figure it out.