AAT Members Professional Indemnity Insurance

Other considerations when deciding how much professional indemnity insurance is enough
What does AAT require for PI?
How do claims from “going concern” or insolvency advice get treated?
Limits of Cover
Does PI cover advice on cryptoassets?
Membership Conditions and Additional Premiums
What does “qualifying insurance” mean for ICAEW firms?

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. 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 and provide you with a quotation for a range of covers.

Other considerations when deciding how much professional indemnity insurance is enough

What if my firm has become insolvent?

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. 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. 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. 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.

Jurisdiction	Minimum Statutory Limit	ACCA Recommended Minimum	Legal Basis
England & Wales	GBP 5,000,000	GBP 10,000,000	Employers' Liability (Compulsory Insurance) Act 1969
Scotland	GBP 5,000,000	GBP 10,000,000	Same as England & Wales
Northern Ireland	GBP 5,000,000	GBP 10,000,000	The Employers' Liability (Defective Equipment and Compulsory Insurance) (Northern Ireland) Order 1972

It protects against allegations of injury or illness suffered by bet free bet sportsbook sign up employees in the course of their employment with you.

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.

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.

What does AAT require for PI?

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. It covers the legal costs involved with defending your business, as well as any compensation that may be due to third parties. Public and product liability insurance provides cover if someone is injured, or their property damaged, in the course of conducting your accountancy business. Do accountants need professional indemnity insurance?PI insurance for accountants is a vital component of any accountancy insurance package for a number of reasons. Firstly, it’ll pay your bet bonus bet casino no deposit legal fees if you’re accused of professional negligence, and it’ll also cover any compensation you may be liable for.

Accountancy Body PII Limits of Insurance

Secondly, accountants professional indemnity insurance is a requirement of most accountancy regulatory bodies or membership associations, so if you don’t have in place, you’re unlikely to be able to sign up. PI insurance for accountants is a vital component of any accountancy insurance package for a number of reasons. What are the AAT insurance requirements?The AAT's require licence holders to hold professional indemnity insurance which:is on an 'any one claim' basisincludes civil liability coveris fully retroactiveThe limit of professional indemnity insurance the AAT require licence holders to hold is dependent on the firm's gross fee income, and:For sole traders, the required professional indemnity limit is the higher of:2.5 times the firm's gross fee income; or£50,000For partnerships, the required professional indemnity limit is the higher of:2.5 times the firm's gross fee income; or£100,000For limited companies, the required professional indemnity limit is the higher of:2.5 times the firm's gross fee income; or£100,000Additionally, if the gross fee income of your firm is greater than £400,000, the maximum level of cover required is £1,000,000.Please note this is provided for information purposes only and members should refer to the AAT website for full details. The AAT's require licence holders to hold professional indemnity insurance which: is on an 'any one claim' basis The limit of professional indemnity insurance the AAT require licence holders to hold is dependent on the firm's gross fee income, and: For sole traders, the required professional indemnity limit is the higher of: 2.5 times the firm's gross fee income; or For partnerships, the required professional indemnity limit is the higher of: 2.5 times the firm's gross fee income; or For limited companies, the required professional indemnity limit is the higher of: 2.5 times the firm's gross fee income; or Additionally, if the gross fee income of your firm is greater than £400,000, the maximum level of cover required is £1,000,000. Please note this is provided for information purposes only and members should refer to the AAT website for full details. 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.

Document Type	Required For	Submission Frequency	ACCA Retention Period
Certificate of Insurance	All practising certificate holders	Annually upon renewal	7 years
Policy Schedule & Wording	New applications, material changes	On request	Duration of membership
Statement of Fact	Initial application for PII	Once, unless circumstances change	7 years
Run-off Cover Confirmation	Cessation of practice	Upon termination	10 years

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.

Failure to display the EL certificate can result in a £1,000 fine.
Records of EL insurance must be kept for 40 years, as claims can be made long after exposure.
Even if you are a limited company, inadequate insurance can pierce the corporate veil in cases of negligence.
Business rates or utility providers may require proof of insurance before providing services.
Minimum requirements are a baseline; adequate cover should be based on a full risk assessment.
Online business portals may require uploading insurance certificates to maintain seller status.
Employee count fluctuations must be reported to your insurer to maintain valid EL cover.

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

UK employers must have Employers' Liability (EL) insurance with a minimum cover of £5 million.
The EL certificate must be displayed at each business premises where employees work.
Insurance must be provided by an authorised insurer under the Financial Services and Markets Act 2000.
Cover is required for all employees, including temporary, casual, and contracted staff.
Certain businesses, like family businesses with no direct employees, may be exempt.
Failure to have EL insurance can result in fines of up to £2,500 per day.

How do claims from “going concern” or insolvency advice get treated?

What are the ACCA insurance requirements?The ACCA's minimum professional indemnity insurance requirements is calculated in relation to your business' annual fee income.If your annual income is less than or equal to £200,000, the required professional indemnity limit is the higher of:2.5 times the firm's income; or25 times the largest fee raised by the firm during the relevant accounting year; or£50,000If your annual income is £200,000 - £700,000, the required professional indemnity limit is the higher of:the aggregate of £300,000 and your total income; or25 times the largest fee raised by the firm during the relevant accounting yearIf your annual income is over £700,000, the required professional indemnity limit is the higher of::£1,000,000; or25 times the largest fee raised by the firm during the relevant accounting yearPlease note this is provided for information purposes only and members should refer to the ACCA website for full details. The ACCA's minimum professional indemnity insurance requirements is calculated in relation to your business' annual fee income.

1.1 Statutory and quasi-statutory roles

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. 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.

For office-based businesses, minimum often includes EL, Public Liability, and contents insurance.
For construction contractors, minimum typically includes EL, Public Liability, and Contract Works insurance.
For consultants, minimum often includes Professional Indemnity and Public Liability insurance.
For retail businesses, minimum includes EL, Public Liability, and Product Liability insurance.
For hospitality, minimum includes EL, Public Liability, and Employers' Liability.

Limits of Cover

Register of Overseas Entities

Firstly, it’ll pay your bet bonus bet casino no deposit legal fees if you’re accused of professional negligence, and it’ll also cover any compensation you may be liable for. Secondly, accountants professional indemnity insurance is a requirement of most accountancy regulatory bodies or membership associations, so if you don’t have in place, you’re unlikely to be able to sign up. PI insurance for accountants is a vital component of any accountancy insurance package for a number of reasons.

Does PI cover advice on cryptoassets?

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

9.3 Run-off

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: Cyber and data risks insuranceCyber and data risks insurance is an important cover that protects against the costs 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. 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. What are the AAT insurance requirements?The AAT's require licence holders to hold professional indemnity insurance which:is on an 'any one claim' basisincludes civil liability coveris fully retroactiveThe limit of professional indemnity insurance the AAT require licence holders to hold is dependent on the firm's gross fee income, and:For sole traders, the required professional indemnity limit is the higher of:2.5 times the firm's gross fee income; or£50,000For partnerships, the required professional indemnity limit is the higher of:2.5 times the firm's gross fee income; or£100,000For limited companies, the required professional indemnity limit is the higher of:2.5 times the firm's gross fee income; or£100,000Additionally, if the gross fee income of your firm is greater than £400,000, the maximum level of cover required is £1,000,000.Please note this is provided for information purposes only and members should refer to the AAT website for full details.

Membership Conditions and Additional Premiums

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 bet free bet sportsbook sign up employees in the course of their employment with you. 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.

Office Break In and Equipment Loss

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. 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. The AAT's require licence holders to hold professional indemnity insurance which: is on an 'any one claim' basis The limit of professional indemnity insurance the AAT require licence holders to hold is dependent on the firm's gross fee income, and: For sole traders, the required professional indemnity limit is the higher of: 2.5 times the firm's gross fee income; or For partnerships, the required professional indemnity limit is the higher of: 2.5 times the firm's gross fee income; or For limited companies, the required professional indemnity limit is the higher of: 2.5 times the firm's gross fee income; or Additionally, if the gross fee income of your firm is greater than £400,000, the maximum level of cover required is £1,000,000. Please note this is provided for information purposes only and members should refer to the AAT website for full details.