For accountants and book-keepers, trust is placed in you by individuals and businesses who seek your expertise, knowledge and attention to detail. With that trust, however, comes risk – and that's why it's essential to consider being covered by professional indemnity (PI) insurance for accountants.
At Gallagher, we specialise in supporting accountants and accountancy firms across the UK. We work with you to provide a level of accountants’ professional indemnity insurance that suits your unique needs. And we can also draw on our risk management experience to guide you with any questions you might have about the cover you need. Why not contact us now to learn more?
What is accountants' professional indemnity insurance?
We know that most – if not all – accountants strive to uphold the highest professional standards. But for all the care you take with looking out for your clients, things can sometimes go wrong. It might be a genuine error, maybe you forgot to submit some paperwork on time. The effect it can have on your client, however, can be substantial and leave you open to a claim.
By taking out professional indemnity insurance for accountants, you'll have cover in the event that a third-party claim is made against you. It helps protect you from the legal costs involved if you should make a mistake, leave something out or provide incorrect advice. Got any queries about accountants' PI insurance? Call us on 0800 138 7581 or get in touch online today.
Why do I need professional indemnity insurance for accountants?
Not all accountancy and book-keeping professionals will be chartered. Nor are they members of one of the UK's professional or regulatory bodies. As such, not all professionals are required to take out accountants' professional indemnity insurance to do their job. If you are a chartered accountant or you're accredited by a recognised professional body, however, you may be required to have a minimum level of professional indemnity cover.
Even if it isn't a requirement, professional indemnity insurance for accountants should still be considered. For some clients, it's one more reason for them to trust you. It shows that you take your responsibilities to them seriously. But there are also some more important reasons to make sure that you have adequate cover in place:
- Has a client come to you for advice? If you make the wrong recommendation, you could be held liable if that advice results in a fine, financial loss or legal action for your client.
- Are you responsible for dealing with your client's books? If you fail to make sure the right paperwork is submitted to HMRC on time, it could land your client with a huge bill.
- Have you been provided with commercially sensitive data, payroll records, and employee records? The risk of cyber security breaches is a major concern for businesses in the digital age. If you're the victim of a hack, you could be liable if client data falls into the wrong hands.