New ACCA PII Regulations

To obtain a no obligation accountants professional indemnity insurance quotation, simply download and complete one of our accountants PI proposal forms.

Alternatively, send us a copy of the insurance proposal form completed for your existing broker. If your insurance policy is not yet due for renewal, register your interest now and we will arrange to contact you prior to the renewal of your current policy. Professional Indemnity insurance provides cover in the event that there has been some form of financial loss accruing to your client due to professional negligence.

The regulatory backdrop — what ICAEW, ACCA and AAT require

(If you bought your policy through us you can be sure it is.) All institute-approved policy wordings are basically the same, regardless of which insurer underwrites it. The insurer must highlight any changes they've made to the wording with a 'difference in conditions' clause. The rules are quite simple: your level of cover has to be at least two and a half times your firm's gross fee income for the past financial year. The minimum level of cover is £250,000. If your firm has a gross income of over £800,000, then you need to have at least £2m cover.

16.2 The typical sole-practitioner cost band

For probate firms, the minimum cover is £500,000 for any bet best cash out betting apps one claim. This means that your cover has to be enough to cover a claim of this amount. For firms involved in insurance distribution activities, the structure changes slightly. They need to have the minimum level of cover prescribed to them by the FCA. A maximum excess is also important when it comes to accountants' professional indemnity insurance requirements.

5.1 The ICAS minimum

The 'excess' is the amount that you have to pay if you claim, while the 'aggregate excess' is the total of all claims paid in a policy year. According to the ICAEW, the maximum aggregate excess for accountancy firms should not exceed £3,000 or 3% of a firm's gross fee income (whichever is higher). Smaller accountancy firms, with a gross fee income of less than £100,000, are permitted an aggregate excess of no more than £3,000. You need to make sure your policy has retroactive cover (insurance jargon for backdated cover) of at least six years. If your business hasn't been going for at least six years, cover should be backdated to when your practice started. This would normally be because advice has been provided incorrectly.

What does ICAEW require for PI?

For more information on insuring your car properly if you're an accountant, read our article "What Car Insurance Does an Accountant Need?" The amount of PII a chartered accountant needs is determined by their professional body based on fee income and the nature of their work. In 2026, the current binding minimum levels of cover for small practices are £100,000 for ACCA members and £250,000 for ICAEW members. It is important to note that these are absolute baselines; most firms are required to hold significantly higher indemnity limits[symbol:-dash]often up to £2 million[symbol:-dash]calculated as a multiple of their gross fee income to ensure adequate protection against modern litigation risks. Whether an accountant is chartered or not, if they retire or take a break from work they'll still need a form of PII to protect them in case a claim against them arises later on. Claims can be brought up to six years from the time the work occurred, so accountants need to buy run-off cover for six years.

12.5 Audit committee scrutiny

Run-off cover for accountants is professional liability insurance that a business or person uses after they stop trading. It protects against claims made against work done earlier, while the business was still actively trading (and fully insured). Run-off cover is typically cheaper than full PII because there's a lower risk of claims as time passes. Most problems will have arisen closer to the time of the work, and the further away you get, the less chance you have of a claim. Rated 4.7 out of 5 stars on Reviews.co.uk If you're a chartered or certified accountant, or a member of a professional accountancy association, you'll know that there are certain accountants' insurance requirements you must meet.

Get accountant professional indemnity insurance quotes.

Did you also know that accountants' professional indemnity insurance requirements specify a minimum level of cover? And that you need to keep your insurance going for a certain number of years? First of all, you need to make sure your policy is from a 'participating insurer'. If it is, you can rest assured it meets the minimum requirements of the ICAEW's approved wording. Check your insurer is on the list by clicking here. For example, if a tax return was not completed correctly by the accountant and as a result the client has to pay for additional fees or a fine. It would also cover a situation where client is advised to do one thing but it turns out they should have done something else and they suffer financially because of that negligent advice.

Does PI cover work done before joining the practice?

Many accountants start their careers at a large accountancy practice, then leave (with or without having become a chartered accountant) to set up shop on their own. Non-chartered accountants can set up a very successful small business, working to provide professional accountancy and taxation assistance to individuals or other small businesses. A non-charted accountant will not be authorised to carry out any audit, insolvency, investment business and probate activities, but they can have a very active business engaged in payroll, VAT and bookkeeping activities as well as producing annual accounts for businesses. Non-chartered accountants who run their own accountancy business are under no obligation to hold PII, since they're not members of the organisations that require it (e.g., ICAEW, ACCA)—but PII is still essential to protect an accountancy business and even personal assets. In fact, PII is critical for accountants operating as sole traders because they do not have the protection of a company.

The full picture

If an uninsured accountant is sued for negligence by a client, their personal finances may be at risk—their home, savings, retirement investments and more. PII protects accountants if they're sued by a client for negligence by covering legal defence costs as well as settlement payments. So while PII might not be required for non-chartered accountants, it is still a crucial aspect of risk management for any working accountant. For information on how much PII cover you should have as a non-chartered accountant, see our updated 2026 guide and tables for chartered accountants here. These tables reflect the current 2026 regulatory thresholds and serve as an essential benchmark for determining adequate coverage levels even if you are not governed by the ICAEW or ACCA.

Always read the policy documents!

ICAEW Chartered and ACCA Chartered Certified accountants and regulated firms are obligated to hold professional indemnity insurance (PII)—in fact, membership with these organisations is dependent upon having qualifying PII cover in place. Chartered accounts must ensure they are covered by PII that: meets the rules for minimum limits of cover Chartered accountants working for a practice or a private company will not need to buy their own PII, as their employer will provide this cover for them. But chartered accountants who have set up their own business must abide by the PII regulations. In addition to bet new gambling sites 2026 PII, any accountant running their own business needs additional types of business insurance to cover operational risks. You can learn more about how these coverages work in our concise guide to accountant insurance. Depending on the insurer, PI Insurance can cover other things such as Data Protection breaches, loss of documents and costs for attending court in the event of a claim.

• Public Liability insurance is not a legal minimum but is often required for contracts and leases.
• Professional Indemnity insurance is a legal requirement for certain professions like financial advisors.
• Motor insurance is a legal minimum for any company vehicles, with at least third-party cover.
• Product Liability insurance may be required if you manufacture, supply, or repair goods.
• Directors' and Officers' Liability insurance is not legally required but is critical for risk management.

In all insurance contracts, you can find out who your insurers are actually covering by looking in the policy wording.

• 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.

This will normally define the persons covered as “You/Your” and in most cases, this will be the company, past, present or future partners, members or directors and any Employee.

It is worth noting that insurers may not automatically cover past or future directors/partners/principals unless they have been specifically advised that you require cover for these individuals and that the policy covers any past trading styles or previous company names.

What professional indemnity insurance covers

Finally, if and when you decide to call it a day, accountants' professional indemnity insurance requirements mean you'll need to have run-off cover for at least two years (although we'd recommend six years just to be on the safe side). If you're wondering, run-off cover is for claims made against you after you've stopped trading but which relate to work you did when your business was up and running. Put simply, the liability for your work exists even when your company doesn't and run-off is what's needed to cover it. Gross fee income...minimum cover...maximum aggregate excess...there's a lot to take in with accountants' professional indemnity insurance. If you're not sure bet best new bookmaker offers today your current accountants' insurance ticks all these boxes, feel free to speak to one of the team on 0345 222 5391 and they'll have a look for you.

Recommendations for firms

We're happy to arrange the cover you need if there's something missing. If you are a member of a professional institute or association then you will be required to purchase professional indemnity insurance. PI Expert is able to provide insurance cover that meets the requirements of all of the professional bodies that represent Accountants and Book-keepers in the UK. We are also able to provide cover for any person who gives advice in this area or offers similar services in a professional capacity. Our specialist, experienced and dedicated accountants professional indemnity team has access to all qualifying insurers which enables us to offer the most appropriate advice and most cost-effective professional indemnity insurance available. There are a number of things to consider.

For example, most accountants are regulated and are required to have a minimum level of PI insurance cover. As of September 2018, the following limits of PI cover are required by the following regulation bodies: ICAEW (Institute Of Chartered Accountants In England and Wales) If the firms turnover is in excess of £600,000, the minimum level of professional indemnity required is £1,500,000 for each and every claim and in total, unless.

• Insurance policies must be reviewed annually to ensure they meet updated legal minimums.
• Notify your insurer immediately if your business activities change to avoid invalidating cover.
• Keep all insurance certificates and policy documents accessible for inspection by authorities.
• Use a broker specializing in your industry to navigate complex minimum requirement landscapes.