If you are setting up business in your own account as an accountant, then you are probably aware that continued registration with your professional body requires you to hold accountants’ professional liability insurance. It all adds up, of course, being largely a matter of common sense – both you, your clients, and your professional body will benefit from the reassurance that any claims arising from the exercise of your professional judgment

The risks – if you set up in business as an accountant, then you are, of course, offering your services on the basis of your qualifications as an accountant. In other words, the standard of any advice and knowledge offered must conform to professional standards. This, in turn, leads customers to expect a professional service and therefore has the effect of raising the stakes with respect to claims against any advice given or recommendations made. The cost of any mistakes, errors or omissions made by the qualified accountant, therefore, can be significantly higher;

The cover – the level of cover required will, of course, vary from one accountancy practice and individual accountant to another. Typically, however, cover is provided for up to £1 million with respect to any one claim;

Clients’ property – it is common practice to include in accountants’ professional liability insurance provision for cover in the event of loss or damage to clients’ property, such as documents, records and other data temporarily in the possession of the instructed accountant.
Wide coverage

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Professional indemnity insurance is unlikely to prove sufficient insurance coverage in itself for those engaged in the provision of accountancy services. Public liability insurance – to provide protection against other claims from members of the public and clients – office contents insurance, general contents insurance, premises insurance and employers’ liability insurance are all additional areas of cover which an accountancy business might wish to consider.

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Indeed, the range of options is so extensive and can be tailored so exactly to meet particular business needs that it can prove useful to seek the advice and guidance of a specialist insurance intermediary in order to identify a suitable accountants’ professional indemnity insurance.