At Simcox Brokers, we can arrange Professional Indemnity (PII) insurance for Accountants.
Professional Indemnity insurance is a compulsory cover for all regulated Accountants such as members of the Institute of Chartered Accountants in England and Wales and the Association of Chartered Certified Accountants.
As an independent broker we have built strong working relationships with a wide panel of specialist insurers in this sector and can assist you throughout the application process, helping best present your firm to the insurers and fully supporting you in the event of a claim.
Members of the ICAEW must adhere to the following:
The required cover is two and a half times the income of the firm for its last financial year (including nonrecurring income) subject to a minimum of £100,000 and a maximum of £1.5 million. This figure may include an excess of up to £30,000 per principal. For example, if you only require the minimum level of indemnity of £100,000, you could have a policy with a £30,000 excess and £70,000 sum insured. The policy will pay the excess of the claim over £30,000; you have to pay the first £30,000.
Please note, you are required to take reasonable steps to meet claims arising from professional business. Although the regulations do not require more than £1.5 million of cover, this limit may not be adequate for your firm.
Members of the ACCA must adhere to the following limits of indemnity:
The minimum limit of indemnity is £50,000
For firms with income less / equal 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
There are other governing bodies and these include the Chartered Accountants in Ireland, the Chartered Institute of Taxation, the Association of Accounting Technicians, the Institute of Chartered Accountants of Scotland and CIMA – Chartered Institute of Management Accountants.
*Limits are correct as of February 2021, please note that limits may change and we advise you check with your regulatory body to ensure you have the correct requirements at the time of taking out your policy. Please note, you are required to take reasonable steps to meet claims arising from professional business. Although the regulations do not require more than the above cover, this limit may not be adequate for your firm.
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