Why do accountants need insurance?
What insurance is available for accountants?
Each business is unique – some accountants may also choose to have public liability insurance.
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 quoteInsurance for accountants: FAQs
What’s included in Hiscox professional indemnity insurance for chartered accountants?
Hiscox professional indemnity insurance is relevant to many complaints an accountant can face. It can help to cover allegations of negligence, accidental 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 be suitable for 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 help 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 be more relevant to businesses with frequent client interactions.
Is professional indemnity insurance mandatory for chartered accountants?
The organisations that facilitate the training and qualification of chartered accountants in the UK and globally will set the rules for their members’ professional indemnity requirements, and this will often include minimum limits for members to have in place for their business. The two main bodies for chartered accountants are ACCA and ICAEW.
- ACCA and professional indemnity insurance
ACCA (external link) is a global organisation for professional accountants. To become a member of the organisation and an ACCA chartered accountant, you must take and pass the ACCA Qualification. As a member, you are required to have professional indemnity insurance.
- ICAEW and professional indemnity insurance
The ICAEW (external link) is the only body in the UK that publishes minimum terms for the Professional Indemnity coverage it requires its chartered members to have. Hiscox has a Chartered Accountant policy wording that meets all the ICAEW minimum terms requirements.
Other professional bodies that ask for their members to have PI cover include:
Hiscox accountants’ insurance is comprehensive and flexible, so you can tailor the cover to meet the requirements of your professional body.
Meet our experts
“With 20 years in the industry, I am a professional indemnity insurance specialist. I champion keeping our policy wordings as ‘plain English’ as possible and stamping out unnecessary jargon. Clarity is key when talking to customers about their professional indemnity cover.”
- Liam Barry, PI Underwriting Manager (Emerging and Traditional)
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