Do accountants need insurance?
Yes, accountants need business insurance.
For an accountant, every penny counts. If a client of yours loses money because of your bad advice or improper practices, you need to be prepared to deal with a claim.
Professional indemnity insurance is the main cover that accounts need. However, there are several other covers that accountant's should consider to get the most out of their cover. These include:
Do I need insurance to join a professional body?
Yes, professional indemnity insurance is a requirement to gain memberships to many of the top professional bodies for accountants.
|
Professional body |
Is Professional Indemnity required to become a member? |
|---|---|
| Institute of Chartered Accountant's in England and Wales (ICAEW) |
 |
| The Institute of Chartered Accountant's of Scotland (ICAS) |
|
| The Association of Chartered Certified Accountant's (ACCA) |
|
What does accountant's insurance cover?
For accountants, a business insurance policy will typically be made up of several covers that give you the best coverage for all your need.
Professional indemnity is the main cover of any policy for an accountant as this will cover you in the evet that your advice or services causes a client to lose money.
But, you would also benefit from public liability (to help with third-party claims of accidental injury or damage_ and possibly employers’ liability if you have anyone working for you (in case they get injured or fall ill due their work).
What type of insurance do accountants need?
Professional indemnity insurance for accountants
Accountants insurance is tailored to businesses like yours and, if you are a member of a Chartered Accountant Institution, it meets the standards of your professional body.
With professional indemnity insurance you can choose the level of cover you need. You’ll be protected from claims made against you if a client of yours loses money after following your advice or using your services.
Who needs professional indemnity?
All accountants who:
- Provide advice and consultancy
- Provide a professional service
- Handle people’s information
- Want to join a professional body
- Are working for a client who insists you have cover
Public liability insurance for accountants
Public liability insurance protects you if someone gets accidentally injured, or their property gets accidentally damaged because of your business. This could be anything from a client having a fall in your office, to you accidentally damaging their laptop.
You can set your cover level up to £5 million, though a client may ask that you have a certain level of cover before they are willing to work with you.
Who needs public liability?
Accountants who:
- Visit the offices of their clients
- Host clients at their offices
Employers’ liability for accountants
If you’ve got anyone working for you then employer’s liability insurance is a legal requirement.
It protects your employees if they get injured on the job or fall sick because of working for you. You’re required by law to have £5 million cover, but we give you £10 million as standard.
Who needs employers’ liability?
Any accountant who has people working for them is legally required to have this cover under the Employers’ Liability Act 1969. This includes:
- Full-time and part-time employees
- Self-employed contractors you hire
- Temporary staff, apprentices, and volunteers
- People taking part in work experience or training schemes
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Optional extras for accountans
When you need just a little extra cover, we have optional extras that can help. So, whether you need assistance to settle a dispute or protection for your essential tech, we’ve got your back.
Legal expense insurance for accountant's
If you want extra legal protection our legal expenses optional extra could be the right fit for you. With this cover you’ll get a little extra help to cover the cost of settling disputes brought against your business. Get cover up to £1 million and up to £100,000 for any single claim.
Business equipment insurance for accountants
Most of an accountants day to day work hinges on reliable access to the tech and systems that make your job possible. If something were to happen to the your computers you use, then business can come to a standstill.
Business equipment cover helps with the cost of replacing or repairing ant lost, stolen or accidentally damaged equipment. The level of cover you need depends on the equipment you’re insurance – always make sure to accurately value your equipment to avoid underinsurance.
How much does accountants insurance cost?
No two policies are the same, which is why their price isn’t either. There’s no one size fits all when it comes to insurance, so if you’d like to what it would cost you to insure your business with us, the easiest way to do that is to get a quote online and see exactly what you’d pay for the types and levels of cover you’d need.
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*The guidance is provided on behalf of AXA by Arc Legal Assistance Ltd who are authorised and regulated by the Financial Conduct Authority.