Professional Indemnity Insurance is the most common type of insurance that accountants need. Other covers generally included are Public Liability, Cyber Insurance and Business Insurance.

A Professional Indemnity policy for an accounting business can provide cover for exposures, such as incorrect tax advice or preparation, accounting & bookkeeping errors, business valuations, failure to comply with an audit undertaking, confidentiality breaches, misleading analysis and interpretation of numerical data. There are numerous other exposures that a Professional Indemnity policy can provide cover for, subject to each insurer’s specific policy wording.

Yes, we can provide Professional Indemnity policies that meet the requirements of professional accounting organisations such as CPA Australia, Chartered Accountants Australia & NZ, The Tax Institute and Tax & Super Australia.

Public Liability insurance is also recommended for accountants as it protects their legal liability in the event of personal injury or damage to the property of others during the daily activities of the business.

For example, Public Liability insurance protects the accounting business if it requires clients or the public to visit the business premises or if the accountant visits the business or home of a client.

The minimum insurance cover required for Accountants is set by the association where membership is held. Generally, a cover of at least $2,000,000 is required.

Yes, we also provide Professional Indemnity Insurance for Bookkeepers and registered BAS Agents & Tax Agents.

Yes, registered BAS agents and Tax agents must have their own Professional Indemnity insurance per regulations set out by the Tax Practitioners Board.

The minimum insurance cover required for BAS and tax agents is based on their annual turnover, as determined by the Tax Practitioners Board.

Professional Indemnity insurance protects accountants from financial loss arising from claims of professional negligence or errors and omissions. Public Liability insurance protects accountants from claims arising from third-party bodily injury or property damage.

You can purchase accounting insurance as a sole trader if you provide professional accounting services.

Exclusions and limitations vary depending on the policy, so it is important to review the policy document carefully before purchasing cover. Your insurance broker can assist you with answering any questions you might have. 

The typical claim process involves the following;

1. Immediately informing the insurer of the incident.
2. Providing evidence and documentation of the claim, including contracts, emails etc..
3. Following instructions or requirements from the insurer.
4. Making payment of your excess (depending on if your excess is ‘inclusive’ or ‘exclusive’).
5. Executing a deed of release if a settlement is reached.

The time it takes to receive a payout after making a claim on accounting insurance can vary depending on the complexity of the claim. Typically, a Professional Indemnity claim will go for weeks/months and in some cases years.