ACCA Professional Indemnity Insurance (PII) regulation update

If you own a premises, office insurance covers your office buildings, contents and computer equipment against accidental damage (including theft) whilst on your business premises.

8. AAT Licensed Member PI requirements

It protects you in your capacity as a director or officer of the company against against allegations of wrongful acts and any damages subsequently awarded against you. Cover is also provided to defend you against disqualification as a director, investigations and extradition proceedings. If your accountancy firm operates as a limited company, you may wish to consider directors and officers insurance. Office insuranceIf you own a premises, office insurance covers your office buildings, contents and computer equipment against accidental damage (including theft) whilst on your business premises. In addition, you can insure portable business equipment (such as laptops and mobile phones) on a worldwide basis, and protect your business against loss of income or additional trading expenses with business interruption insurance. Occupational personal accident insuranceOccupational personal accident insurance can provide you with a weekly payment in the event you are injured (resulting in temporary total disablement) in the course of your work (subject to a 14-day deferment period) and unable to work.

• Financial penalty for non-compliance can be up to £5,000
• Suspension of membership is a potential consequence
• ACCA's Professional Standards Department monitors compliance
• Members must notify ACCA of any material change in cover
• Breach of requirement is considered misconduct

Many self-employed professionals choose this cover to maintain a regular source of income should an unexpected accident at work happen.Additionally, it can provide you with a lump sum payment in the event of:- Loss of hearing- Loss of speech- Loss of limb(s)- Loss of sight- Permanent Disablement- Death Occupational personal accident insurance can provide you with a weekly payment in the event you are injured (resulting in temporary total disablement) in the course of your work (subject to a 14-day deferment period) and unable to work.

Many self-employed professionals choose this cover to maintain a regular source of income should an unexpected accident at work happen.

Optional extras for accountans

It pays for your legal fees as well as any compensation which you may be liable for in the event of an allegation of professional negligence. Public liability insurance for accountants is another important cover to consider, protecting your business in the event someone is injured (or their property damaged) as a result of a mistake you make. Aside from these two important pieces of cover, there are a number of other forms of insurance for accountants you should consider. Rated 4.8 stars from 351 customer reviews at Google Employers' liability insuranceIf your accountancy practice has employees, employers' liability insurance is essential cover. It protects against allegations of injury or illness suffered by employees in the course of their employment with you.

Accountancy insurance is our speciality. We understand the risks facing accounting professionals and practices, including members of the Association of Chartered Certified Accountants (ACCA), Chartered Institute of Management Accountants (CIMA), Institute of Financial Accountants (IFA) and Association of Accounting Technicians (AAT).

Legally, you are required to hold a minimum of £5m worth of cover (we provide £10m cover as standard), and it should be arranged for anyone who works for you - including temporary or casual staff. If your accountancy practice has employees, employers' liability insurance is essential cover. Legal expenses insuranceLegal expenses insurance covers a wide range of legal costs and expenses that could be incurred in the course of your business - including contract disputes, tax enquiries, attending jury service, debt recovery, personal injury, as well as any award you are required to pay following an employment dispute with an employee. Legal expenses insurance covers a wide range of legal costs and expenses that could be incurred in the course of your business - including contract disputes, tax enquiries, attending jury service, debt recovery, personal injury, as well as any award you are required to pay following an employment dispute with an employee. Directors and officers insuranceIf your accountancy firm operates as a limited company, you may wish to consider directors and officers insurance. Additionally, it can provide you with a lump sum payment in the event of: Cyber and data risks insuranceCyber and data risks insurance is an important cover that protects against the costs

• Review policy exclusions for cyber liability and data breaches
• Consider standalone cyber insurance as a supplement to PI
• Fidelity cover (for employee theft) is often a separate policy
• Legal expenses insurance can be a valuable addition
• Policy excess (deductible) should be set at an affordable level
• Ensure the policy territory is worldwide for international clients
• Negotiate a waiver of subrogation for key client contracts

involved with a cyber attack, including:restoring data and equipmentinforming clientsmeeting ransom demandsloss of your net profitIt covers your defence costs, as well as any damages you are liable to pay third parties.

You may wish to consider this cover to protect against confidential information about your clients' finances being stolen from internet-connected devices.

Cyber and data risks insurance is an important cover that protects against the costs involved with a cyber attack, including: It covers your defence costs, as well as any damages you are liable to pay third parties.

How to Get Professional Indemnity Insurance with ICPA

Covers such as bookkeepers’ insurance for instance, will protect you allegations of poor or incorrect bookkeeping, or the theft of a laptop containing important and confidential client data. Even with many years' experience in accountancy, an unexpected circumstance could see a claim brought against you. For instance a client could claim that you have breached their confidentiality, while another might suffer an injury at your premises and hold you responsible. Without comprehensive accounting insurance in place, your business could struggle to survive such claims. Other unexpected circumstances, such as the theft of computer equipment, or a fire or flood at your business premises, could be financially damaging for your business.

Do accountants need public liability insurance?

Accounting business insurance can protect you and make the difference. Most accountancy associations (including the ACCA, AAT, CIMA and ICAS) require members to hold a minimum level of accountants’ professional indemnity insurance to protect you if a client alleges you have made a mistake in your work - such as not filing their accounts on time, making an error in a VAT return or providing poor advice in relation to a self-assessment. Our specialist accountants’ insurance can be tailored to provide cover however you need it, as well as giving you complementary access to a 24-hour legal advice helpline and legal hub for any business-related legal issues. Professional indemnity insurance for accountants covers the cost of defending your business against allegations of professional negligence (such as giving your client incorrect or wrongful advice). If your defence should be unsuccessful, it also covers the cost of damages awarded against you. Public and product liability insurancePublic and product liability insurance provides cover if someone is injured, or their property damaged, in the course of conducting your accountancy business.

How Much Are Your Contracts Worth?

Again, Lockton can readily assist you (or the potential buyer) with this to ensure that past liabilities can be protected appropriately. Finally, and by way of immediate comfort to those accountants who are considering retiring from ongoing practices, there is better news: their past liability should continue to be covered by the firm’s PI policy on an ongoing basis. Often after retirement, many accountants continue to practise as consultants to the firm and the majority of PI policies will continue to provide cover for such work. Nevertheless, in each scenario, we strongly suggest that the policy wording be reviewed to make sure that cover is correctly in place; again, Lockton can help with this. Finally, if you have any questions, please contact your Lockton account manager for further advice or email accountants@uk.lockton.com.

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Lockton is ACCA’s recommended broker for professional indemnity insurance. Specialist insurance for accountants from £5 a month* Fast, easy online quote in 90 seconds Fast, easy online quote in 90 seconds Accountant insurance covers a great deal of risks that could face you and your business, but from professional indemnity insurance through to employers’ liability insurance policies and more – Markel have you covered. Accountants insurance is an important form of business insurance designed to protect your business against the unexpected. It’s worth noting that it’s not a single product, but rather a group of covers that can be tailored to suit you and your business needs. It can protect you against the costs involved in defending allegations of professional negligence (such as making a mistake in a piece of work), causing injury to a third party, or damage to vital equipment (or property) you use for business. This could be, for example, if a visitor to your office were to slip on a wet floor, or if you were to accidentally damage a client's laptop during a meeting (e.g.

9. IFA Practising Certificate PI requirements

Making a mistake in a piece of work could cause a financial loss to your client, and they may take legal action against you to recover their losses. This cover is crucial when it comes to protecting accountants. It’s generally considered essential protection for accountants and is usually a requirement of your regulatory body or membership association. See our ‘Frequently Asked Questions’ section below to learn more about how AAC, ATTA and CIMA requirements can affect the type of cover you should be applying for. In the meantime, here are some examples of claims that accountants’ professional indemnity insurance could protect against: Failing to inform a client that their business has breached the VAT threshold Failing to properly prepare and file end of year accounts Providing incorrect advice regarding a company structure Professional indemnity Insurance for accountants is available with limits ranging from £50,000 to £5m.

How much do ACA vs ACCA salaries compare?

Starting at £5 per month* (depending on your business requirements), arranging accountants insurance with Markel Direct is fast and easy. Our simple quote form will collect a few details about your business bet online betting apps with free bonus and provide you with a quotation for a range of covers. You can then select which covers you want to include in your policy, ensuring you only ever pay for the cover you want and no unnecessary extras. There are no hidden fees or cancellation charges when you arrange cover with Markel Direct, and you can spread the cost of your policy over 10 interest free instalments. Professional indemnity insurance for accountants is often considered a priority.