Professional Indemnity (PI) Insurance for Accountants

• Errors & Omissions / Negligence / Malpractice: Coverage for your mistakes while performing services for clients. 

  For example, if you run an Accounting practice and make mistakes while auditing financial statements, your clients could file a civil suit against you for malpractice. 

• Defamation: Coverage if you are found guilty of libel or slander.
  

  For instance, you make verbal claims (slander) and written claims (libel) about a competitor’s services that are later found to be untrue, resulting in you being sued. 

• Retroactive Claims: Coverage for mistakes that occurred before you bought Professional Indemnity Insurance.
  

  Professional Indemnity Insurance is usually structured on a “Claims Made” basis. This means that even if your claimable event occurred several years ago, as long as you file a claim while your current policy is active, you will be protected. You must have held uninterrupted Professional Indemnity coverage for this retroactive protection to apply.

• Subcontractor Errors: Coverage for subcontractor mistakes that harm your clients.
  

  For instance, you run a construction company and subcontract work to electricians. They do a poor job of wiring your client’s property, causing damage and injuries. Both your subcontractor and your company are sued.

Because the coverage terms of each Professional Indemnity policy are crafted on a case-by-case basis, more specialised coverage can be customised to suit your unique needs. Get started on a quote, or drop us a message to start crafting your own custom policy.

• Circumstances that could lead to a claim, which you knew about prior to activation of this policy

• Death, injury or illness of employees. You’ll need Work Injury Compensation Insurance to cover this.

• Management-related claims such as Wrongful Employment Practice lawsuits from employees. You’ll need Directors & Officers Liability Insurance to cover this.

• Damage to third-party property, unless arising directly from a professional error.

• Pollution caused by your services. You’ll need Directors & Officers Liability Insurance to cover this.

• Cost of dealing with cyber attacks due to negligent safety measures. A Professional Indemnity policy does not cover the cost of dealing with cyber attacks. You’ll need Cyber Insurance to cover this.

As long as you provide any kind of services to clients, it’s important to consider Professional Indemnity Insurance seriously. For a small annual fee, you immediately protect yourself from lawsuits that could potentially deal a crushing financial blow to your business.

It is standard practice for these industries to have Professional Indemnity coverage:

• Accountants

• Healthcare Services

• Legal Services

• Financial Services (Financial Advisors, Investment Firms, Brokerages)

• Architects

• Surveyors

• Logistics Firms

• PR/Marketing Firms

• Construction Firms 

• Spas and Massage Therapists
• Hair/Nail Salons

You should evaluate these factors to decide:

• Regulatory/Professional Association Requirements: Some industries (e.g. accounting, financial services, law) have legal requirements for how much Professional Indemnity Insurance you need to have. 

• Worst-Case Scenario: Think about the size of the contracts you accept. What is the maximum amount you could be sued for? And how much would it cost for lawyer’s fees?

• Number of Employees: The more employees you have, the more professional liability you are exposed to. Your firm could face multiple lawsuits caused by different employees!

Our experienced brokers at Provide will help you create a policy that will protect you from the worst legal scenarios.

Policies generally begin from $2,000/year, for a starting amount of about $500,000 in coverage. Prices will vary depending on your business type and size.

With Provide, you save up to 25% on your annual premiums. That’s because our digital operating model creates lower overheads, and we pass every dollar saved back to our clients.

To get the best coverage for your business, it’s crucial to work with a great broker. Our industry experts, with 20+ years of experience, will:
1. Analyse your unique needs.
2. Craft a custom protection plan for you.
3. Search the market for the best coverage and lowest prices for you.

Get started on a quote today!