Firstly, it’ll pay your legal fees if you’re accused of professional negligence, and it’ll also cover any compensation you may be liable for.

10. ICPA member PI scheme

Further considerations

Related guides

Secondly, accountants professional indemnity insurance is a requirement of most accountancy regulatory bodies or membership associations, so if you don’t have in place, you’re unlikely to be able to sign up. PI insurance for accountants is a vital component of any accountancy insurance package for a number of reasons.

Pathways to Membership

Firstly, it’ll pay your legal fees if you’re accused of professional negligence, and it’ll also cover any compensation you may be liable for. Secondly, accountants professional indemnity insurance is a requirement of most accountancy regulatory bodies or membership associations, so if you don’t have in place, you’re unlikely to be able to sign up. PI insurance for accountants is a vital component of any accountancy insurance package for a number of reasons. What are the AAT insurance requirements?The AAT's require licence holders to hold professional indemnity insurance which:is on an 'any one claim' basisincludes civil liability coveris fully retroactiveThe limit of professional indemnity insurance the AAT require licence holders to hold is dependent on the firm's gross fee income, and:For sole traders, the required professional indemnity limit is the higher of:2.5 times the firm's gross fee income; or£50,000For partnerships, the required professional indemnity limit is the higher of:2.5 times the firm's gross fee income; or£100,000For limited companies, the required professional indemnity limit is the higher of:2.5 times the firm's gross fee income; or£100,000Additionally, if the gross fee income of your firm is greater than £400,000, the maximum level of cover required is £1,000,000.Please note this is provided for information purposes only and members should refer to the AAT website for full details. The AAT's require licence holders to hold professional indemnity insurance which: is on an 'any one claim' basis The limit of professional indemnity insurance the AAT require licence holders to hold is dependent on the firm's gross fee income, and: For sole traders, the required professional indemnity limit is the higher of: 2.5 times the firm's gross fee income; or For partnerships, the required professional indemnity limit is the higher of: 2.5 times the firm's gross fee income; or For limited companies, the required professional indemnity limit is the higher of: 2.5 times the firm's gross fee income; or Additionally, if the gross fee income of your firm is greater than £400,000, the maximum level of cover required is £1,000,000.

What Factors Affect the Cost of PI Insurance?

Please note this is provided for information purposes only and members should refer to the AAT website for full details. What are the ACCA insurance requirements?The ACCA's minimum professional indemnity insurance requirements is calculated in relation to your business' annual fee income.If your annual income is less than or equal to £200,000, the required professional indemnity limit is the higher of:2.5 times the firm's income; or25 times the largest fee raised by the firm during the relevant accounting year; or£50,000If your annual income is £200,000 - £700,000, the required professional indemnity limit is the higher of:the aggregate of £300,000 and your total income; or25 times the largest fee raised by the firm during the relevant accounting yearIf your annual income is over £700,000, the required professional indemnity limit is the higher of::£1,000,000; or25 times the largest fee raised by the firm during the relevant accounting yearPlease note this is provided for information purposes only and members should refer to the ACCA website for full details. The ACCA's minimum professional indemnity insurance requirements is calculated in relation to your business' annual fee income. If your annual income is less than or equal to £200,000, the required professional indemnity limit is the higher of: 2.5 times the firm's income; or 25 times the largest fee raised by the firm during the relevant accounting year; or If your annual income is £200,000 - £700,000, the required professional indemnity limit is the higher of: the aggregate of £300,000 and your total income; or 25 times the largest fee raised by the firm during the relevant accounting year If your annual income is over £700,000, the required professional indemnity limit is the higher of:: 25 times the largest fee raised by the firm during the relevant accounting year Please note this is provided for information purposes only and members should refer to the ACCA website for full details. What are the CIMA insurance requirements?A CIMA Member in Practice is required to hold professional indemnity insurance, however CIMA does not advise on the level of cover your business is likely to need.We offer a range of limits of professional indemnity insurance for CIMA members, and our article 'how much professional indemnity insurance do I need?' may assist with your decision.Please note this is provided for information purposes only and members should refer to the CIMA website for full details.

What is the difference between verifiable and non-verifiable ACCA CPD?

A CIMA Member in Practice is required to hold professional indemnity insurance, however CIMA does not advise on the level of cover your business is likely to need. We offer a range of limits of professional indemnity insurance for CIMA members, and our article 'how much professional indemnity insurance do I need?' may assist with your decision. Please note this is provided for information purposes only and members should refer to the CIMA website for full details. I need proof of cover to start work, do you provide this?Yes. We provide a dedicated 'Confirmation of Liability Insurance' document which gives full details about the cover you have with us. What are the AAT insurance requirements?The AAT's require licence holders to hold professional indemnity insurance which:is on an 'any one claim' basisincludes civil liability coveris fully retroactiveThe limit of professional indemnity insurance the AAT require licence holders to hold is dependent on the firm's gross fee income, and:For sole traders, the required professional indemnity limit is the higher of:2.5 times the firm's gross fee income; or£50,000For partnerships, the required professional indemnity limit is the higher of:2.5 times the firm's gross fee income; or£100,000For limited companies, the required professional indemnity limit is the higher of:2.5 times the firm's gross fee income; or£100,000Additionally, if the gross fee income of your firm is greater than £400,000, the maximum level of cover required is £1,000,000.Please note this is provided for information purposes only and members should refer to the AAT website for full details. The AAT's require licence holders to hold professional indemnity insurance which: is on an 'any one claim' basis The limit of professional indemnity insurance the AAT require licence holders to hold is dependent on the firm's gross fee income, and: For sole traders, the required professional indemnity limit is the higher of: 2.5 times the firm's gross fee income; or For partnerships, the required professional indemnity limit is the higher of: 2.5 times the firm's gross fee income; or For limited companies, the required professional indemnity limit is the higher of: 2.5 times the firm's gross fee income; or Additionally, if the gross fee income of your firm is greater than £400,000, the maximum level of cover required is £1,000,000. Please note this is provided for information purposes only and members should refer to the AAT website for full details.

16. Sole-practitioner economics: why small does not mean cheap

What are the ACCA insurance requirements?The ACCA's minimum professional indemnity insurance requirements is calculated in relation to your business' annual fee income.If your annual income is less than or equal to £200,000, the required professional indemnity limit is the higher of:2.5 times the firm's income; or25 times the largest fee raised by the firm during the relevant accounting year; or£50,000If your annual income is £200,000 - £700,000, the required professional indemnity limit is the higher of:the aggregate of £300,000 and your total income; or25 times the largest fee raised by the firm during the relevant accounting yearIf your annual income is over £700,000, the required professional indemnity limit is the higher of::£1,000,000; or25 times the largest fee raised by the firm during the relevant accounting yearPlease note this is provided for information purposes only and members should refer to the ACCA website for full details. The ACCA's minimum professional indemnity insurance requirements is calculated in relation to your business' annual fee income. If your annual income is less than or equal to £200,000, the required professional indemnity limit is the higher of: 2.5 times the firm's income; or 25 times the largest fee raised by the firm during the relevant accounting year; or If your annual income is £200,000 - £700,000, the required professional indemnity limit is the higher of: the aggregate of £300,000 and your total income; or 25 times the largest fee raised by the firm during the relevant accounting year If your annual income is over £700,000, the required professional indemnity limit is the higher of:: 25 times the largest fee raised by the firm during the relevant accounting year Please note this is provided for information purposes only and members should refer to the ACCA website for full details. What are the CIMA insurance requirements?A CIMA Member in Practice is required to hold professional indemnity insurance, however CIMA does not advise on the level of cover your business is likely to need.We offer a range of limits of professional indemnity insurance for CIMA members, and our article 'how much professional indemnity insurance do I need?' may assist with your decision.Please note this is provided for information purposes only and members should refer to the CIMA website for full details.

Maintain a valid MOT certificate if the vehicle is over the required age, as insurance may be void without it.
Keep the vehicle in a roadworthy condition; insurers may refuse claims for defects that caused an accident.
Do not use the vehicle for any purpose excluded by the policy, such as racing or track days.
Secure the vehicle against theft by using appropriate locks and alarms as specified by the insurer.

4. ACCA Professional Indemnity Insurance Regulations

I need proof of cover to start work, do you provide this?Yes.

7. ATT licensed members — the tax technician position

Find out more on the Financial Services Register. We are a division of Markel International, a Lloyd’s of London market insurer that wrote gross premium totals of £2.4bn in 2023 As a specialist insurer of accountants and bookkeepers, we provide a range of useful services for you to access, included as standard with certain covers: Find out more about the new PII Regulations. With effect from 1 September 2023, the ACCA has introduced new Professional Indemnity Insurance (PII) regulations. PII is a mandatory purchase for practising ACCA members in the UK and Ireland and a PII policy is there to cover you in the event a mistake is made, for which you are sued or investigated (or both). The update in regulation comes as part of a series of planned modernisation and improvements to the Global Practising Regulations and the ACCA Rulebook.

Stage 2: Plan

This is in light of significant change in the PII insurance market in recent times and the importance of PII in the public interest. In summary, the update in regulation is a simplification of the rules. Although there are a number of amendments, we have outlined below those that we see as most notable. The minimum limit of indemnity has increased from £50,000 to £100,000. This mirrors the minimum level for ICAEW members.

What is professional indemnity insurance in simple terms?

The ‘twenty-five times the largest fee’ multiplier has been removed to calculate PII limits and instead has been replaced with new bandings: For firms generating income under £600,000, the PI limit needs to be the greater of two and a half times the relevant total income or £100,000For firms generating income in excess of £600,000 the minimum limit of indemnity is set at £1.5Million. For firms generating income under £600,000, the PI limit needs to be the greater of two and a half times the relevant total income or £100,000 For firms generating income in excess of £600,000 the minimum limit of indemnity is set at £1.5Million. Where firms have (in some cases) needed to purchase significant limits on their PII policy, the changes in regulation mean that they may now be able to purchase a lower limit moving forwards – which could help to reduce the costs of their PII policy. Combine this with signs of a softening market, this will be welcome news for ACCA member firms. If you would like to discuss this topic further and understand the implications this may have on your firm, please don’t hesitate to contact the team. We provide a dedicated 'Confirmation of Liability Insurance' document which gives full details about the cover you have with us. This gets emailed to you once your policy is purchased. I need proof of cover to start work, do you provide this? Is there a limit of cover I should choose?Many industries state that you need a minimum level of cover before you can undertake any work for a client, so be sure to check this before you take out any cover. If you're unsure, or it's the first time you have arranged cover, consider the worst-case scenario and what costs could be involved in putting your mistake right. Is there a limit of cover I should choose?

Why should accountants buy cover?

This gets emailed to you once your policy is purchased. I need proof of cover to start work, do you provide this? Is there a limit of cover I should choose?Many industries state that you need a minimum level of cover before you can undertake any work for a client, so be sure to check this before you take out any cover. If you're unsure, or it's the first time you have arranged cover, consider the worst-case scenario and what costs could be involved in putting your mistake right. Is there a limit of cover I should choose?

How many CPD hours does ACCA require per year?

Many industries state that you need a minimum level of cover before you can undertake any work for a client, so be sure to check this before you take out any cover. Why should I choose Markel’s insurance?With over 25 years of experience insuring contractors, consultants and self-employed professionals, Markel has proven experience in ensuring you have the cover you need. We insure over 200,000 micro businesses and are highly rated by our customers at Feefo.com.We are a division of Markel International, a Lloyd’s of London market insurer.To discuss your insurance requirements and better understand what cover we can provide, call us on 0371 705 3182 or get a quick quote online. Why should I choose Markel’s insurance? With over 25 years of experience insuring contractors, consultants and self-employed professionals, Markel has proven experience in ensuring you have the cover you need.

How is the premium calculated?

We insure bet best uk betting sites new over 200,000 micro businesses and are highly rated by our customers at Feefo.com. We are a division of Markel International, a Lloyd’s of London market insurer. To discuss your insurance requirements and better understand what cover we can provide, call us on 0371 705 3182 or get a quick quote online. How are Markel Direct regulated?Markel Direct is a trading name of Markel International Insurance Company Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Find out more on the Financial Services Register.We are a division of Markel International, a Lloyd’s of London market insurer that wrote gross premium totals of £2.4bn in 2023 Markel Direct is a trading name of Markel International Insurance Company Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Many industries state that you need a minimum level of cover before you can undertake any work for a client, so be sure to check this before you take out any cover.

Audit rights

Why should I choose Markel’s insurance?With over 25 years of experience insuring contractors, consultants and self-employed professionals, Markel has proven experience in ensuring you have the cover you need. We insure over 200,000 micro businesses and are highly rated by our customers at Feefo.com.We are a division of Markel International, a Lloyd’s of London market insurer.To discuss your insurance requirements and better understand what cover we can provide, call us on 0371 705 3182 or get a quick quote online. Why should I choose Markel’s insurance?

Report any accident or incident to the insurer within the timeframe specified in the policy document.
Cooperate fully with the insurer's appointed claims handler or loss adjuster during a claim.
Do not admit liability at the scene of an accident; let the insurers handle the investigation.
Obtain a police report for any accident involving injury, significant damage, or a hit-and-run.
Keep detailed records and photographs of damage, the scene, and other parties involved.

With over 25 years of experience insuring contractors, consultants and self-employed professionals, Markel has proven experience in ensuring you have the cover you need. We insure bet best uk betting sites new over 200,000 micro businesses and are highly rated by our customers at Feefo.com. We are a division of Markel International, a Lloyd’s of London market insurer. To discuss your insurance requirements and better understand what cover we can provide, call us on 0371 705 3182 or get a quick quote online. How are Markel Direct regulated?Markel Direct is a trading name of Markel International Insurance Company Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Find out more on the Financial Services Register.We are a division of Markel International, a Lloyd’s of London market insurer that wrote gross premium totals of £2.4bn in 2023 Markel Direct is a trading name of Markel International Insurance Company Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Find out more on the Financial Services Register.

Maintain a valid motor insurance certificate (Certificate of Motor Insurance) for each vehicle.
Ensure the insurance policy covers at least third-party liability as a minimum legal requirement.
Display a valid insurance disc on the vehicle's windscreen if required by local jurisdiction.
Notify your insurer immediately of any changes to vehicle details or registered keeper.
Inform the insurer of any modifications that could affect the vehicle's risk profile.

We are a division of Markel International, a Lloyd’s of London market insurer that wrote gross premium totals of £2.4bn in 2023 As a specialist insurer of accountants and bookkeepers, we provide a range of useful services for you to access, included as standard with certain covers: Find out more about the new PII Regulations. With effect from 1 September 2023, the ACCA has introduced new Professional Indemnity Insurance (PII) regulations. PII is a mandatory purchase for practising ACCA members in the UK and Ireland and a PII policy is there to cover you in the event a mistake is made, for which you are sued or investigated (or both). The update in regulation comes as part of a series of planned modernisation and improvements to the Global Practising Regulations and the ACCA Rulebook. This is in light of significant change in the PII insurance market in recent times and the importance of PII in the public interest. In summary, the update in regulation is a simplification of the rules.

Ensure the policy meets the minimum requirements for any associated finance or leasing agreement.
If using the vehicle for ride-sharing or delivery services, obtain specific business use coverage.
For modified vehicles, seek a specialist policy or endorsement that covers the modifications.
Verify coverage for driving in other countries if planning a trip abroad (may require a Green Card).

Although there are a number of amendments, we have outlined below those that we see as most notable. The minimum limit of indemnity has increased from £50,000 to £100,000. This mirrors the minimum level for ICAEW members. The ‘twenty-five times the largest fee’ multiplier has been removed to calculate PII limits and instead has been replaced with new bandings: For firms generating income under £600,000, the PI limit needs to be the greater of two and a half times the relevant total income or £100,000For firms generating income in excess of £600,000 the minimum limit of indemnity is set at £1.5Million. For firms generating income under £600,000, the PI limit needs to be the greater of two and a half times the relevant total income or £100,000 For firms generating income in excess of £600,000 the minimum limit of indemnity is set at £1.5Million. Where firms have (in some cases) needed to purchase significant limits on their PII policy, the changes in regulation mean that they may now be able to purchase a lower limit moving forwards – which could help to reduce the costs of their PII policy. Combine this with signs of a softening market, this will be welcome news for ACCA member firms. If you would like to discuss this topic further and understand the implications this may have on your firm, please don’t hesitate to contact the team.

Provider / Scheme Name	Type of Offering	Key Features / Notes	Contact Method
ACCA Approved Scheme (via Lockton)	Dedicated scheme for members	Competitive rates, ACCA-approved policy wording.	Online portal / dedicated phone line
Marsh Commercial	Broker with ACCA expertise	Tailored quotes for accountancy practices.	Broker website and direct contact
Hiscox	Direct insurer	Specialist in professional and financial risks.	Online quote system
Travelers	Direct insurer	Offers comprehensive practice insurance packages.	Via appointed brokers