Accountants Insurance

What Is Accountants’ Insurance?

Accountants insurance, or accountancy insurance as it’s also known, is a specialist form of cover designed to meet the needs of accountants and accountancy firms.  A typical policy protects accountancy professionals against risks, such as professional indemnity insurance in case of a miscalculation or perceived poor advice, loss of business contents, and cyber insurance.

What does Accountants’ Insurance Cover?

Insurance for accountants through Jensten Insurance Brokers can offer a range of protections.  The exact makeup will depend on the cover you take out, but a typical policy will include the following:

• • Professional Indemnity Insurance – should the advice you give or the services you offer cost the client money or be deemed not up to standard, this protects you in case of legal action.  A significant risk for many accountants is inaccurate filings with HMRC.  These can result in your client facing a larger tax bill and could also mean they are fined and suffer reputational damage.  If this happens, you could face a claim for damages.
  • Employers’ liability insurance – if you have any employees, then this is a legal requirement
  • Directors’ and officers’ insurance  – protects practice executives from legal action resulting from their business’s activities
  • Cyber insurance – protects against things such as data loss, ransomware, and the accidental infection of a third-party’s system with a virus
  • Business Contents – everything from computers to records and office equipment

Why Do You Need Accountants Insurance?

The costs of a professional indemnity claim can be high, and clients often make having a policy in place a condition of undertaking work for them.  Financial services firms are also prime targets for cyber-attacks, according to cybersecurity firm Trellix in the Q3 2022 report – and if you have any employees in your practice, you will need employers’ liability insurance by law.  This all makes having good quality accounts insurance in place a wise move for accountants and accountancy firms.

 How Much Does Accountancy Insurance Cost?

The cost of your accountants’ insurance quote will depend on factors such as:

• • The turnover of your business
  • The nature of your business and the projects you do
  • If you do work for overseas businesses or multinationals
  • Whether you have any employees
  • The size of the clients you work with
  • Your claims history

 Accountants’ Insurance FAQ

This is one of the more complex cover areas, so to help you get the protection you need, here is our accountants’ insurance frequently asked questions.  We hope they will help, but if you’d like some independent advice, please call us on 01903 444 951 , and the team will be happy to help.