If you are an Accountant seeking cost effective professional indemnity insurance from someone who understands your business, we can help you.
All our quotations are individually underwritten so you can be sure the premium reflects your firm's unique circumstance.
At Collegiate in addition to providing cover for Accountants who are members of professional bodies we also offer insurance to those who are unqualified but highly experienced in their field.
Professional indemnity insurance is compulsory for members of the Institute of Chartered Accountants in England and Wales (ICAEW) and the Association of Chartered Certified Accountants (ACCA). Cover must comply with a minimum standard policy wording and be placed with an approved insurer. The Collegiate/Hiscox policy meets the requirements of both professional bodies.
The minimum levels of professional indemnity required by the ICAEW for policies incepting after 1 January 2008 are as follows:
- For firms with a fee income of less than £600,000-
- The indemnity limit must be 2½ times the gross fees of the practice for the last financial year, subject to a minimum of £100,000
- For Firms with fees greater than £600,000-
- The indemnity limit must be a minimum of £1.5 million
Firm should always consider whether the above limits are appropriate for their circumstances, maximum limits can, of course, be extended upon request.
Run-Off Insurance.
All Professional Indemnity Insurance is on a claims made basis, that means you must have an active PI policy at the time a claim or allegation is made against you. It is important to remember that once a PI policy expires you can no longer make any claims against it. Therefore you need to consider maintaining your PI insurance once you cease trading. This is called Run-Off Insurance and provides protection against any claims which may arise from work you undertook in the past. The ICA require all of their members to carry Run-Off insurance for a minimum of two years once they cease trading, they also recommend that members actually carry it for at least six years.
Run-Off is an annually renewable policy, the premiums will usually reduce each year to reflect the reducing exposure to insurers.
For further information about our Accountants policy please click on the 'Fact Sheet' opposite:
