Why do accountants need insurance?
A costly miscalculation
If you file accounts with HM Revenue and Customs and a miscalculation means thousands of pounds aren’t accounted for, your client could find themselves facing a larger-than-expected tax bill. If this happens, they may blame you and take legal action to reclaim the lost money. For an accountant, Hiscox business cover can be tailored to include professional indemnity insurance, which helps with the cost of defending and settling the case. It’s welcome protection, whether your accountancy firm makes a mistake or faces false accusations.
Hackers hold data to ransom
When hackers access a chartered accountant’s files, they can do real damage. Confidential client data could be stolen, and a ransom may be demanded in exchange for its return. Customise Hiscox business insurance for accountants to include cyber and data risk insurance and you’ll be able to speak to cyber specialists in such a case. This promotes a speedy bounce-back and may help to strengthen your data security against future threats.
Protect your equipment
Running a busy accountancy firm can bring a keen sense of responsibility for your clients, who trust you with intricate business details. To service them effectively, you’ll need functioning kit and a secure office environment. If you lose your laptop or damage your business smartphone, operations may grind to a halt. Office insurance can fund new equipment for a swift return to business as usual and even help with lost earnings.
What insurance is available for accountants?
These are just some of the types of business insurance for accountants that we can offer. We can provide other specific types of cover and build them into a policy that’s tailored to the exact needs of your business.Get your quote
Insurance for accountants: FAQs
What’s included in Hiscox professional indemnity insurance for accountants?
Hiscox professional indemnity insurance covers a wide range of complaints an accountant may face, including allegations of negligence, breach of confidence and giving poor business advice.
Should you provide good-faith tax guidance which turns out to be misplaced, we may help to pay related legal fees and compensation. Likewise, if your cashflow forecasts turn out to be incorrect and a client sues, insurance can help with the aftermath.
Our professional indemnity insurance can also cover tax accountants and company registrars as well as auditing and payroll professionals. This means a wide range of industry activities, from filing to invoicing, are covered.
Do accountants need public liability insurance?
Every business entity is liable to members of the public for injuries or property damage that might occur because of its activities. Public liability insurance is designed to absorb the cost of such cases.
Many businesses can face public liability claims, even if they aren’t public-facing – for instance, an office sign could fall from a commercial building.
However, public liability insurance might become more important with frequent client interactions. If an accountant invites people into their home or office to discuss business, then this cover could be beneficial.
Is professional indemnity insurance mandatory for chartered accountants?
Having professional indemnity (PI) cover as part of a business insurance policy may be mandatory for chartered accountants who are licensed to practise.
Professional bodies that ask for their members to have PI cover include:
- ACCA (external link)
- AAT (external link)
- ICAEW (external link)
- ICAS (external link)
- CIMA (external link)
Hiscox accountants’ insurance complies with the guidelines of these organisations, so chartered professionals can take out a policy with the reassurance it meets required regulations.
It’s a good idea for members to get in touch with these bodies to verify the essentials.
If you aren’t a chartered accountant, PI may not be a requirement, but it may still be a welcome addition to a comprehensive insurance policy.
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