New ACCA PII Regulations

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Get the inside track from real business owners just like you The key factors to consider when arranging your professional indemnity insurance cover When it comes to assessing your professional indemnity arrangements and selecting the right limit, there are several key factors to consider.

What affects your premium?

Why not get in touch with Aqueous today to discuss your clients’ needs? – Authored by Stuart Barker, Head of Business Development – Professional Indemnity Protect against claims made by clients or partners 86% of businesses are happy with our customer service We compare a vetted panel of trusted business suppliers Bionic specialises in business insurance for small businesses and sole traders, like accountants Get cover to protect against claims from clients, partners and more. Bionic is trusted by UK businesses and won 'Highly Commended' at the 2025 Insurance Broker Awards When you’re dealing with accounts and tax returns for clients accuracy is key, but you can’t eliminate human error. Similarly, if you have an office or employ anyone, you could also run into risks of injury, fire or theft. That’s why it’s important to have sufficient business insurance in place.

13.1 What Tax Investigation Insurance does

If you’re a member of a professional body like the ICAEW or ACCA, you are required to have a certain level of professional indemnity cover to practice. We can tailor your accountancy insurance to your business needs so you can service clients with your back covered and without the worry of paying out of your own pocket. When carrying out daily work, as an accountant, you could run into many risks. You make a financial error in a client’s account You suffer a data breach that exposes sensitive client information A fire breaks out on your premises An employee suffers an injury at work A client suffers an injury at your workplace If you’re self-employed and not a chartered accountant, it isn’t mandatory. But if you’re licensed to practice accountancy by ACCA, AAT, ICAEW, ICAS or CIMA, then you’re required to take professional indemnity insurance out.

10.2 Group scheme considerations

If you employ anyone, you’ll need to take out employer’s liability insurance by law, whether you are chartered or not. The main addition to business insurance for accountants is a professional indemnity insurance policy, which helps protects you against any claims for professional negligence in your work. Take a look at the requirements for the regulatory bodies and associations below: ACCA registered accountants must have a level of professional indemnity insurance (PII) insurance that is linked to annual income. If your firm’s annual income is less than £600,000: If your firm’s annual revenue is less than £600,000, your cover limit must be 2.5 times higher than your firm’s annual income or £100,000, whichever is higher. If your income is more than £600,000: If your bet betting sites bonus without deposit (or your firms) total income is over £600,000. These include your regulatory body, client base and any potential exposures your practice may face.

Required levels of professional indemnity insurance

The minimum limit of indemnity on PII is £1.5 million. Professional Indemnity Insurance is an ICAS regulatory requirement for any member in practice, and it’s required under the Public Practice Regulations. The policy must be arranged with a participating insurer that complies with approved wording. This is related to the level of cover and scope of cover against any claims made by work carried out in the last 6 years. Professional indemnity insurance (PII) is compulsory for all ICAEW members who have a practising certificate and engage in public practice.

Covering past work – what is Retroactive PI Cover?

As of September 1, 2024 new regulations have come into play. Practising members generally must have a minimum indemnity limit of £2m for every single claim. Members with a gross fee income below £800,000 must have PI insurance that provides a minimum limit of indemnity equal to 2.5 times their gross fee income, with a minimum of £250,000. In case an employee gets ill or injured because of the work they do for you. A legal requirement if you have employees.

14.4 What firms must do

In case you injure someone or damage something while providing your services. In case a customer sues you for damages because of a mistake in your work. Protects your building from unforeseen property damage including fire, storms, floods but also arsonists and vandalism. To provide compensation if a listed event stops your business from running normally. Prices could start from around bet betting bonus app 54p per day*. It’s worth reviewing your arrangements throughout the year, not just at renewal, especially if you are venturing into a new area or taking on more work.

• Minimum indemnity limit typically £50,000 for members in practice
• Cover must be provided by an insurer authorized in the UK
• Policy must cover civil liability from professional business activities
• Run-off cover required upon retirement or cessation of practice

This will ensure that you are adhering to your regulatory obligations.

Importance of run-off cover

Find out what you need to protect your side hustle in this guide. Every year your business insurance is going to be due for renewal. But do you stay or switch insurer? How do you know if you need to make changes to cover? We've got it all covered in this guide. To help you establish the appropriate level of cover, you should consider the following factors during your assessment: ACCA has minimum insurance requirements that each member must adhere to how long your business has been established, including any predecessor firms historical claims – these can provide insight to potential future claims, especially

Do accountants need insurance?

A complex case as the wrong doer will have gone out of their way to cover their tracks. An accountant uses third-party information to research the latest tax insights. Taking the information at face value, they give the wrong advice leading to losses for the client. Be aware of the regulatory status of your client and the impact of this on the limits and cover you need to recommend and the markets you can and cannot approach. The primary capacity that Aqueous have secured is all fully compliant with the necessary accounts regulatory bodies.

6.3 Heads of damage in tax PI claims

Beyond regulatory hygiene, be clear about what matters most to your clients and how they operate. Each one is different, so you need access to a range of products that can be tailored to your customers’ needs. Look for comprehensive products that are simple and quick to arrange. At Aqueous, quoting and binding on our e-trade platform can take less than five minutes, with experienced underwriters on hand to give you all the information you need. All our products are underwritten by A-rated (or above) insurers, meaning quality and reliability is guaranteed.

Terms of engagement

Each product has been carefully designed to cover the risks faced by specific professions, based on our experience of the market. A comprehensive PI policy is an effective and efficient way to manage risk. As time-pressed business owners, your clients want to get the right cover without hassle or fuss. At Aqueous, we pride ourselves on the human touch. Professional underwriters offer personal attention and are always available if you need to discuss a policy. if there are any identifiable trends the maximum potential value of a single claim – this will be influenced by the largest transaction values undertaken the

How to calculate how much professional indemnity insurance you need

Because all businesses are different, it’s difficult to give a solid figure for what you’ll be paying for insurance without speaking to a broker. Your business is unique, and price depends on a number of factors, including: Extent of cover — The more cover you opt for, the more expensive your package will likely be. Your insurer — Depending on who is willing to insure you, the price for their policies will vary. Location — The location of your business is taken into consideration when calculating the cost of your premiums. Claims history — If you’ve made a claim on your policy or had claims made against you, it may affect your future premiums.

3.3 Aggregate cover and reinstatements

*The price is for a offices and surgeries policy – 10% of customers who were sold with one of our panel providers paid £197.16 or less annually (excluding any additional administration fees) between 01/01/25 & 31/12/2025. Equivalent to £16.43 a month or £0.54 a day (and excludes the extra costs for paying monthly). Your actual policy and price may vary based on your business requirements. At Bionic, we champion UK business owners and want to help in every way we can. That’s why we use a team of knowledgeable insurance brokers who work with a panel of trusted insurers to help you find coverage for your needs.

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).

Our UK-based team helps business owners daily to compare business insurance to find the right insurer that fits. Accountancy insurance could shield your professional reputation from financial and legal damages. Compare insurance quotes in three simple steps Speed up the process by submitting basic business details online – whenever you have time. Schedule a call with one of our insurance brokers to discuss the details to ensure they’re correct. Get your quotes from our panel of trusted insurers and through any questions with our team. total potential value of a series of related claims your likely exposure to claims – this is influenced by the practice areas undertaken and your typical clients.

Other Types of Small Business Insurance for an Accountant

You only need a few details to get started with getting a free business insurance quote online, so it’s best to have the following information ready to go: Your name and contact details to receive your quote options You may be asked additional questions about business activities Never spoken to a business insurance broker before? Here's what you need to know: from finding one that’s right for your business, to renewals, claims and more. Our Senior Technical Insurance Manager, Ollie Barrett, walks you through what to expect when arranging business insurance with a broker for the first time. We all love to make an extra bit of on the side, but what happens your side hustle goes sideways? If you don't have any business insurance in place, you could end up paying out the cash you've earnt in legal fees or otherwise. For example, corporate finance work and corporation tax tend to incur higher claims payments any activities that could expose your practice to risk, including the nature and level of undertakings accepted the

• Coverage must extend to all employees and subcontractors
• Exclusions for fraud or dishonesty are typically permissible
• Defence costs are usually included within the limit of indemnity
• Insurer must have a claims handling office in the UK

possibility of a claim being made against you in every department if the work is ongoing or on a one-off basis the maximum potential exposure of the client and other interested parties.

• Online portal submission of insurance certificates is mandatory
• Broker's letter of confirmation is an acceptable temporary proof
• ACCA may conduct random audits of PI insurance documentation
• Record keeping of policies and certificates for at least six years
• Changes in insurer or policy number must be reported promptly