Accountants insurance

Specialist insurance for accountants from £5 a month*

Fast, easy online quote in 90 seconds
24hr legal advice helpline included
No hidden fees or cancellation charges

Accountancy insurance is our speciality. We understand the risks facing accounting professionals and practices, including members of the Association of Chartered Certified Accountants (ACCA), Chartered Institute of Management Accountants (CIMA), Institute of Financial Accountants (IFA) and Association of Accounting Technicians (AAT).

Accountant insurance covers a great deal of risks that could face you and your business, but from professional indemnity insurance through to employers’ liability insurance policies and more – Markel have you covered.

What is accountants’ insurance?

Accountants insurance is an important form of business insurance designed to protect your business against the unexpected. It’s worth noting that it’s not a single product, but rather a group of covers that can be tailored to suit you and your business needs. It can protect you against the costs involved in defending allegations of professional negligence (such as making a mistake in a piece of work), causing injury to a third party, or damage to vital equipment (or property) you use for business. Covers such as bookkeepers’ insurance for instance, will protect you allegations of poor or incorrect bookkeeping, or the theft of a laptop containing important and confidential client data.

Do accountants need insurance?

Even with many years' experience in accountancy, an unexpected circumstance could see a claim brought against you. For instance a client could claim that you have breached their confidentiality, while another might suffer an injury at your premises and hold you responsible. Without comprehensive accounting insurance in place, your business could struggle to survive such claims.

Other unexpected circumstances, such as the theft of computer equipment, or a fire or flood at your business premises, could be financially damaging for your business. Accounting business insurance can protect you and make the difference.

Most accountancy associations (including the ACCA, AAT, CIMA and ICAS) require members to hold a minimum level of accountants’ professional indemnity insurance to protect you if a client alleges you have made a mistake in your work - such as not filing their accounts on time, making an error in a VAT return or providing poor advice in relation to a self-assessment.

Our specialist accountants’ insurance can be tailored to provide cover however you need it, as well as giving you complementary access to a 24-hour legal advice helpline and legal hub for any business-related legal issues.

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Professional indemnity insurance for accountants

Professional indemnity insurance for accountants covers the cost of defending your business against allegations of professional negligence (such as giving your client incorrect or wrongful advice). If your defence should be unsuccessful, it also covers the cost of damages awarded against you. Making a mistake in a piece of work could cause a financial loss to your client, and they may take legal action against you to recover their losses.

This cover is crucial when it comes to protecting accountants. It’s generally considered essential protection for accountants and is usually a requirement of your regulatory body or membership association.

See our ‘Frequently Asked Questions’ section below to learn more about how AAC, ATTA and CIMA requirements can affect the type of cover you should be applying for.

In the meantime, here are some examples of claims that accountants’ professional indemnity insurance could protect against:

Failing to comply with filing deadlines
Failing to inform a client that their business has breached the VAT threshold
Failing to properly prepare and file end of year accounts
Providing incorrect advice regarding a company structure

Professional indemnity Insurance for accountants is available with limits ranging from £50,000 to £5m.

How much does accountants insurance cost?

Starting at £5 per month* (depending on your business requirements), arranging accountants insurance with Markel Direct is fast and easy. Our simple quote form will collect a few details about your business and provide you with a quotation for a range of covers.

You can then select which covers you want to include in your policy, ensuring you only ever pay for the cover you want and no unnecessary extras. There are no hidden fees or cancellation charges when you arrange cover with Markel Direct, and you can spread the cost of your policy over 10 interest free instalments.

What insurance do accountants need?

Professional indemnity insurance for accountants is often considered a priority. It pays for your legal fees as well as any compensation which you may be liable for in the event of an allegation of professional negligence.

Public liability insurance for accountants is another important cover to consider, protecting your business in the event someone is injured (or their property damaged) as a result of a mistake you make.

Aside from these two important pieces of cover, there are a number of other forms of insurance for accountants you should consider.

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Policy Documents

Cover starting at £5 a month

Tailor your accountants insurance in minutes with these covers

Employers' liability insurance

If your accountancy practice has employees, employers' liability insurance is essential cover. It protects against allegations of injury or illness suffered by employees in the course of their employment with you. Legally, you are required to hold a minimum of £5m worth of cover (we provide £10m cover as standard), and it should be arranged for anyone who works for you - including temporary or casual staff.
Legal expenses insurance

Legal expenses insurance covers a wide range of legal costs and expenses that could be incurred in the course of your business - including contract disputes, tax enquiries, attending jury service, debt recovery, personal injury, as well as any award you are required to pay following an employment dispute with an employee. Limit of £100,000.
Directors and officers insurance

If your accountancy firm operates as a limited company, you may wish to consider directors and officers insurance. It protects you in your capacity as a director or officer of the company against against allegations of wrongful acts and any damages subsequently awarded against you. Cover is also provided to defend you against disqualification as a director, investigations and extradition proceedings. Limits range from £100,000 to £5m.
Office insurance

If you own a premises, office insurance covers your office buildings, contents and computer equipment against accidental damage (including theft) whilst on your business premises. In addition, you can insure portable business equipment (such as laptops and mobile phones) on a worldwide basis, and protect your business against loss of income or additional trading expenses with business interruption insurance.
Occupational personal accident insurance

Occupational personal accident insurance can provide you with a weekly payment in the event you are injured (resulting in temporary total disablement) in the course of your work (subject to a 14-day deferment period) and unable to work. Many self-employed professionals choose this cover to maintain a regular source of income should an unexpected accident at work happen.

Additionally, it can provide you with a lump sum payment in the event of:

-       Loss of hearing

-       Loss of speech

-       Loss of limb(s)

-       Loss of sight

-       Permanent Disablement

-       Death
Cyber and data risks insurance
Cyber and data risks insurance is an important cover that protects against the costs involved with a cyber attack, including:
- restoring data and equipment
- informing clients
- meeting ransom demands
- loss of your net profit
It covers your defence costs, as well as any damages you are liable to pay third parties. You may wish to consider this cover to protect against confidential information about your clients' finances being stolen from internet-connected devices.
Public and product liability insurance

Public and product liability insurance provides cover if someone is injured, or their property damaged, in the course of conducting your accountancy business. This could be, for example, if a visitor to your office were to slip on a wet floor, or if you were to accidentally damage a client's laptop during a meeting (e.g. by knocking it off a table). It covers the legal costs involved with defending your business, as well as any compensation that may be due to third parties. Limits range from £1m to £5m.

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Frequently asked questions

Cover starting at £5 a month

Frequently asked questions

Do accountants need professional indemnity insurance?

PI insurance for accountants is a vital component of any accountancy insurance package for a number of reasons. 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.
What are the AAT insurance requirements?
The AAT's require licence holders to hold professional indemnity insurance which:
- is on an 'any one claim' basis
- includes civil liability cover
- is fully retroactive
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
- £50,000
For partnerships, the required professional indemnity limit is the higher of:
- 2.5 times the firm's gross fee income; or
- £100,000
For limited companies, the required professional indemnity limit is the higher of:
- 2.5 times the firm's gross fee income; or
- £100,000
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.
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; or
- 25 times the largest fee raised by the firm during the relevant accounting year; or
- £50,000
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::
- £1,000,000; or
- 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.
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. This gets emailed to you once your policy is purchased.
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.
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.
How are Markel Direct regulated?

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.

Access specialist business services as part of your policy cover

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: