An accountancy practice should distinguish bookkeeping, tax work, audit and specialist advice when obtaining professional indemnity insurance. A policy suitable for a small bookkeeping service may not match a practice taking on complex advisory assignments.
Professional-service allegations
Professional indemnity concerns allegations about professional services. Compare the accepted activities, claim and notification wording, prior-work provisions and exclusions. A higher limit cannot repair an activity that the wording does not accept.
The decision that deserves the closest review
Check the requirements of the professional body relevant to your practice, then compare the proposed insurance against actual engagements. Explain corporate clients, reliance on subcontractors, changes in fee income and any higher-risk work. Ask for confirmation where a professional-body requirement and the offered wording need reconciliation.
Premiums, excesses and usable cover
Request quotations using the same business description, required limits and relevant dates. Put the annual premium, any instalment charges, excesses and important sublimits in one comparison. A cheaper premium can represent a different transfer of risk rather than the same cover at a better price.
| Comparison item | Question to resolve |
|---|---|
| Service mix and annual fee income | Does the wording meet the applicable body’s current requirements? |
| Client complexity and advisory assignments | Are all advisory services disclosed? |
| Professional-body requirements and past notifications | How is run-off arranged after retirement? |
Request the proposed wording and schedule, not just a price or certificate. Mark any difference that affects a real activity before deciding whether the premium saving is worthwhile.
A hypothetical example
A practice begins providing due-diligence support alongside routine accounts. It gives its adviser a separate description of the new work, the anticipated fees and the intended contractual limits instead of waiting for the next annual proposal form.
Prepare an accurate insurance enquiry
Give each adviser a consistent description of the activities being insured. Include important contracts, changes since the previous enquiry and matters the insurer asks you to disclose. Do not guess answers merely to obtain a faster or cheaper quote; ask for clarification when the proposal wording is unclear.
Separate routine accounts from specialist assignments
Prepare a service breakdown that a person outside the practice can understand. Identify the proportion of work involving routine compliance, audit, tax advice and transactions. Note services performed through external specialists and any client engagement that asks the practice to accept unusual liability or permit wider reliance.
Give the insurance adviser the relevant professional-body rules alongside the service breakdown. Ask for an explanation of how the offered documents address both. At renewal, retain the old and new schedules and record the reason for any material change; this creates a more useful comparison than a premium history alone.
Include overseas work or sales in the UK business’s enquiry and confirm the accepted territories and jurisdictions.
A mistake to avoid
Assuming that every policy described as accountant insurance satisfies every professional body’s rules.
Check what happens after the policy starts
Ask who to contact when activities change or a potential claim arises. Understand the notification and consent process before arranging repairs, appointing specialists or settling a complaint. At renewal, compare the new documents with the accepted business description; continuity of a familiar brand does not prove continuity of every term.
Questions before choosing
Should a practice rely on an old minimum-cover figure?
Check the current rules directly and ask the adviser to document how the proposed policy meets them.
Should new transaction work wait until renewal to be discussed?
Ask the adviser when activity changes must be notified. Describe the assignment before relying on cover arranged for a narrower service mix.
Sources and further reading
Research date: 6 October 2026. Refer to the current linked guidance and written provider or adviser terms when making a decision.