Making it All Add Up - Accountants' Professional Indemnity Insurance

If you are setting up business in your own account ascover is provided for up to £1 million with
an accountant, then you are probably aware thatrespect to any one claim;
continued registration with your professional body- Clients' property - it is common practice to include in
requires you to hold accountants' professional liabilityaccountants' professional liability insurance provision for
insurance. It all adds up, of course, being largely acover in the event of loss or damage to clients'
matter of common sense - both you, your clients, andproperty, such as documents, records and other data
your professional body will benefit from thetemporarily in the possession of the instructed
reassurance that any claims arising from the exerciseaccountant.
of your professional judgmentWide coverage
- The risks - if you set up in business as anProfessional indemnity insurance is unlikely to prove
accountant, then you are, of course, offering yoursufficient insurance coverage in itself for those
services on the basis of your qualifications as anengaged in the provision of accountancy services.
accountant. In other words, the standard of any advicePublic liability insurance - to provide protection against
and knowledge offered must conform to professionalother claims from members of the public and clients -
standards. This, in turn, leads customers to expect aoffice contents insurance, general contents insurance,
professional service and therefore has the effect ofpremises insurance and employers' liability insurance
raising the stakes with respect to claims against anyare all additional areas of cover which an accountancy
advice given or recommendations made. The cost ofbusiness might wish to consider.
any mistakes, errors or omissions made by theIndeed, the range of options is so extensive and can
qualified accountant, therefore, can be significantlybe tailored so exactly to meet particular business
higher;needs that it can prove useful to seek the advice and
- The cover - the level of cover required will, ofguidance of a specialist insurance intermediary in order
course, vary from one accountancy practice andto identify a suitable accountants' professional
individual accountant to another. Typically, however,indemnity insurance.