Accounting Insurance, also known as Professional Indemnity Insurance for accountants, is crucial for financial professionals who handle sensitive information and provide advisory services. It’s important for accountants in Australia to comply with professional standards and legislation, which often requires them to hold a certain level of coverage while practising.
Accounting Insurance for Professionals
Accounting Insurance Details
What type of insurance cover do Accountants commonly require?
What Accounting Services can be covered?
Professional Indemnity Insurance protects accountants against potential losses arising from negligent acts, errors and omissions resulting from services such as:
- General consultancy,
- Corporate finance, and
- Insolvency work
What does Accounting Insurance cover?
With the right Accounting Insurance policy, accountants can obtain coverage for various exposures, including:
- Incorrect tax advice or preparation,
- Accounting or bookkeeping errors,
- Conflicts of interest,
- Business valuations,
- Failure to comply with audit undertaking,
- Confidentiality breaches, and
- Misleading analysis and interpretation of numerical data.
As a broker with access to a range of different insurers offering insurance for accounting practices in Australia, we can help you find the most suitable Professional Indemnity policy for your individual requirements. Our policies meet the requirements of various member groups, including:
What other insurance cover is required for accountants?
In addition to Professional Indemnity Insurance, accountants are also advised to consider their requirements for Public Liability Insurance, which protects their legal liability in the event of personal injury or damage to the property of others during the daily activities of their business.
This is particularly important if the business premises or home receives visits from customers or the public or if the accountant visits their clients’ business premises or home. Public Liability Insurance can provide coverage for any accidents that may occur while a member of the public is visiting your business premises while also covering any damage caused to third-party property.
In addition to Professional Indemnity and Public Liability Insurance, it’s becoming increasingly important for accountants to consider their requirements for Cyber Insurance. With the rise of digital technologies and online transactions, accounting firms face a growing risk of cyberattacks, data breaches, and other cyber threats.
Cyber Insurance can provide coverage for various cyber risks, including data breaches, hacking, cyber extortion, and loss of income due to system downtime. It’s important for accounting practices to carefully assess their exposure to cyber risks and take measures to protect their data and systems. Our team can provide guidance on Cyber Insurance options and help you find the most suitable coverage for your accounting practice in Australia.
At Webber Insurance we can help you find the right insurance coverage for your accounting practice in Australia. Contact us today to get a quote and protect your business.
Other than Accountants, we can also help with:
We also provide Professional Indemnity Insurance for Bookkeepers, which is a recommended policy even if you’re not registered as a BAS agent. Taking out a policy specific to bookkeeping will provide you with the peace of mind that your business and the advice you provide is protected when carrying out your services.
Click here for further information and pricing for Bookkeeping Insurance.
As a registered BAS Agent, you are required to comply with regulations set out by the Tax Practitioners Board (TPB) which came into effect on July 1 2011. There regulations state that as a BAS Agent, you are obliged to obtain your own Professional Indemnity Insurance policy if you are not covered by an employer policy. Based upon your annual turnover, the TPB also requires that you have a minimum amount of insurance cover.
Click here for further information and pricing for BAS Agent Insurance.
Similar to BAS Agents, the Tax Practitioners Board also requires registered Tax Agents to hold their own Professional Indemnity Insurance policy, if not covered by an employer’s policy. The minimum amount of insurance cover you must hold is also based upon your annual turnover.
Click here for further information and pricing for Tax Agent Insurance.
Get an Accountant Insurance quote
To arrange a quote please click the button below and submit your details. If you would like more information or have any questions, please call us on 1300 932 237.
Accounting Insurance FAQs
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.
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.
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;
- Immediately informing the insurer of the incident.
- Providing evidence and documentation of the claim, including contracts, emails etc..
- Following instructions or requirements from the insurer.
- Making payment of your excess (depending on if your excess is ‘inclusive’ or ‘exclusive’).
- 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.