Leo compares the UK market and shows you PI policies side by side for accountants. £1M cover, instant activation.
Professional indemnity insurance protects you and your business against the costs of claims made by clients who have suffered loss due to your professional advice or work. For accountants, this is particularly important as a single mistake or oversight can result in significant financial liability.
The main risks accountants face include: tax filing errors, financial misstatements, regulatory penalties, audit failures
Regulatory requirement: ICAEW/ACCA requires all practising accountants to hold professional indemnity insurance.
The amount of professional indemnity insurance cover you need depends on the size of your business, the types of clients you work with, and the potential value of claims. Most accountants opt for cover between £500,000 and £2 million.
The right level of cover depends on the size of your projects, your annual revenue, and any contractual requirements from your clients. Leo's comparison tool can help you explore different cover levels and see how they affect your premium.
The cost of professional indemnity insurance for accountants varies depending on:
As a guide, accountants typically pay from £15 per month for professional indemnity insurance.
Compare PI insurance in 60 secondsA small business owner discovers significant discrepancies in their accounting records after your firm's year-end review, resulting in substantial underpayment of corporation tax and additional penalties from HMRC.
Your error in calculating corporation tax reliefs costs a client £150,000 in lost tax credits that should have been claimed over a three-year period.
A client's statutory financial statements contain material errors in revenue recognition that go undetected during your audit, leading to shareholder disputes and regulatory investigation.
You fail to flag serious cash flow issues during a client consultation, and the business subsequently becomes insolvent, with directors claiming your negligence accelerated the collapse.
Professional indemnity insurance for Accountant typically covers:
As an accountant, you're likely required by your professional body (ICAEW, ACCA, ACA) to hold professional indemnity insurance. Your policy should reflect the complexity of your practice—sole practitioners may need £500K-£1M cover, whilst larger firms working with corporate clients should consider £2M-£5M. Ensure your policy covers tax advisory services, audit work, and accounts preparation. Many clients now require evidence of PI insurance before engaging your services, particularly for larger engagements or public sector work.
The average professional negligence claim against UK accountants is valued at £95,000. Approximately 34% of accounting firms have faced at least one professional indemnity claim in the past five years. The most common claims relate to tax advice errors (42%), followed by bookkeeping mistakes (28%) and failure to advise on compliance obligations (18%).