Professional Indemnity (PI) Insurance provides cover for the legal costs and expenses in defending a claim, as well as compensation payable to your client if you are found to be responsible for providing inadequate advice or services that cause your client financial loss.

Professional Indemnity Insurance protects accountants from legal claims arising from errors, omissions, or negligence in their work. It covers your legal defence costs and compensation payouts, ensuring financial stability if disputes arise from professional services provided.

Fidelity guarantee insurance (FGI) provides cover for your business against theft of the firm’s own money, securities or property by an employee, partner, contractor, or volunteer. FGI can also be known as first-party fraud, theft or employee dishonesty cover.

FGI cover can sometimes be confused with third-party fraud and dishonesty cover however third-party fraud and dishonesty refers to theft of the client’s money rather than the rm’s own money, and this tends to be covered within the main insuring clause (civil liability) of a professional indemnity policy.

Yes, the ACCA Regulations require that member firms in public practice with more than one staff member have a minimum of £100,000 cover in place for any one claim, to help protect the business and enable it to continue trading following a fraudulent act. Please note you must also ensure that your Fidelity guarantee insurance extends to cover your sub-contractors.

The PII regulations changed from 1 September 2023, and there are now two income bands, instead of three. These are Total Income above £600,000 and Total Income below £600,000.

• The previous lower and middle-income bands are now combined, and the total income limit is reduced from £700,000 to £600,000.

• The minimum PII limit of indemnity required is £100,000.

• The PII limits for each income band are now determined solely based on a firm’s total income, as follows:

• For firms with a total income under £600,000, the limit is (i) two and a half times the firm’s relevant total income or (ii) £100,000, whichever is the greater.

• For firms with a total income equal to or greater than £600,000, the limit is at least £1.5 million

Accountants should ensure their insurance meets regulatory requirements, provides comprehensive protection for their specific areas of practice, and includes both mandatory coverages (such as PII) and optional extras like cyber liability or public liability to suit their business needs.

The standard coverage includes Professional Indemnity Insurance (PII), Legal Expenses Insurance, and Employers’ Liability. Optional extras such as Office Insurance, Cyber and Data Liability Insurance, and Directors and Officers Liability Insurance are also available.

You’ll be supported by Lockton’s UK-based claims team, who know your business and are fully prepared to handle even the most complex claims. You also have access to a dedicated claims advocate and a free legal helpline.

The scheme offers easy renewal processes, pre-populated forms, 24/7 access to key documents through a client portal, and multiple user access to streamline the management of your insurance.