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For members of the ACCA, the minimum limit of indemnity is £50,000. For firms with income up to £200,000, the limit of indemnity must be 2.5 times the total income or 25 times the largest fee in the previous accounting year. For firm’s whose income is between £200,000 and £700,000, the greater of £300,000 plus the total income or 25 times the largest fee. For firms with income exceeding £700,000, it is the greater of £1,000,000 or 25 times the largest fee.
The other governing bodies include the Chartered institute of Chartered Accountants in Ireland (ICAI), the Chartered Institute of Taxation (CIOT), the Association of Accounting Technicians (AAT), the institute of Chartered Accountants of Scotland (ICAS) and the Association of Chartered Certified. If you are member of one of these bodies, please get in touch and we would be happy to discuss what their requirements are.
Unlike many of our competitors who are only tied to one insurer we are independent and can approach our wider panel of approved insurers to make sure you are getting the best deal available in the marketplace.
Professional Indemnity insurance is a compulsory cover for all accountants who are members of the Institute of Chartered Accountants in England and Wales and the Association of Chartered Certified Accountants. All members of the ICAEW must obtain insurance from a participating insurer. These insurers have all agreed to meet the requirements of the ICAEW’s minimum approved policy wording.
Members of the ICAEW must adhere to the following limits of indemnity:
• If income is less than £600,000, the practice is required to have a limit of indemnity which is 2.5 times the gross fees of the practice for the last financial year. This is subject to a minimum of £100,000.
• If gross income fees exceed £600,000, the minimum limit of indemnity must be £1.5M any one claim.