Professional Indemnity Insurance UK | Everything You Need to Know (2026)

In line with the ACCA regulations which were effective from September 2023, your FGI cover must also extend to cover any sub-contractors.

FGI has traditionally been covered by a separate section or clause within the professional

What Does Professional Indemnity Insurance Cover?

We've got it all covered in this guide. Sign-up to The Backbone, our free fortnightly newsletter for anyone who owns, runs, or works in one of the millions of businesses across the UK. Get the inside track from real business owners just like you Guarding against first-party fraud or theft Fidelity guarantee insurance (FGI) exists to protect your firm or organisation 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. ACCA’s Regulations require that member firms in public practice with more than one member of staff have at least £100,000 cover in place for any one claim, to help protect the business and enable it to continue trading following a fraudulent act. indemnity insurance (PII), with ACCA practising regulations stating that ‘FGI may, but need not, form

What to look for with PI cover

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. 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? a single policy with such PII and all such PII and FGI must remain in force for all of the period during which a relevant practising certificate is held’.

• For young or inexperienced drivers, consider telematics (black box) policies to potentially reduce premiums.
• Build a No Claims Discount (NCD) by driving claim-free; protect the NCD if the policy offers that option.
• Declare any business use accurately, as using a vehicle for business on a social-only policy invalidates cover.
• Ensure all drivers hold a valid license for the vehicle category and have the insurer's permission to drive.
• Provide accurate annual mileage estimates to the insurer, as significant underestimation can affect claims.
• For classic cars, ensure the policy is specifically designed for classic or vintage vehicles with agreed value.

Importantly, FGI cover should not be confused with third-party fraud and dishonesty cover.

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Claims history — If you’ve made a claim on your policy or had claims made against you, it may affect your future premiums. *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.

What is the Assigned Risks Pool?

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. 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.

10.2 Group scheme considerations

Get your quotes from our panel of trusted insurers and through any questions with our team. 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? Third-party fraud and dishonesty refer to theft of the client’s money, as opposed to the accountancy firm's

What insurance do accountants need?

Professional indemnity insurance (PII) is compulsory for all ICAEW members who have a practising certificate and engage in public practice. 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.

14.4 What firms must do

A legal requirement if you have employees. 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.

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Prices bet best sign up offers bookies could start from around 54p per day*. 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. own money, and is usually covered within the main insuring clause (civil liability) of a professional indemnity policy.

The regulatory backdrop — what ICAEW, ACCA and AAT require

Make sure to compare the coverage and exclusions of each policy. Review Policy Terms: Carefully read through the policy details to ensure it covers all the essential risks specific to your role as an ACCA tutor. This includes checking for coverage on legal costs, settlements, and any other relevant areas. Understanding the factors that influence the cost of ACCA tutor insurance is essential after determining the right coverage for your profession. The cost of professional indemnity insurance for an ACCA tutor depends on several key elements.

6.4 Run-off

Firstly, the level of coverage you need directly affects the premiums. Tutors with larger client bases or those offering specialised services may face higher costs. Secondly, your experience and claims history play a significant role; a clean record can help lower your premiums. Thirdly, the location and regulatory environment also impact costs. Lastly, the reputation of the insurance provider and the specifics of their policy terms, such as deductibles and exclusions, are important considerations.

Stage 1: Assess

Evaluating these factors ensures that ACCA tutors secure appropriate and cost-effective professional indemnity insurance. Live support for students and tutors - the quickest way to talk with us. 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. Fraud claims have increased in both frequency and value in the past few years.

• Ensure the policy meets the minimum requirements for any associated finance or leasing agreement.
• If using the vehicle for ride-sharing or delivery services, obtain specific business use coverage.
• For modified vehicles, seek a specialist policy or endorsement that covers the modifications.
• Verify coverage for driving in other countries if planning a trip abroad (may require a Green Card).

There are several reasons for this, but the main factor is that online banking makes it so much easier to fraudulently transfer money.

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That’s why it’s important to have sufficient business insurance in place. 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.

14.5 Looking forward

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. 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.

Acca Insurance

If your income is more than £600,000: If your (or your firms) total income is over £600,000. 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. Lockton has handled many claims for first- and third-party fraud. In one case, a member of staff was able to transfer funds from both the accountancy firm’s own bank account and those of its clients directly into the bank accounts of close relatives.

• Report any accident or incident to the insurer within the timeframe specified in the policy document.
• Cooperate fully with the insurer's appointed claims handler or loss adjuster during a claim.
• Do not admit liability at the scene of an accident; let the insurers handle the investigation.
• Obtain a police report for any accident involving injury, significant damage, or a hit-and-run.
• Keep detailed records and photographs of damage, the scene, and other parties involved.