Professional Indemnity Insurance does not automatically cover every liability an Accountant accepts under an engagement letter or client contract. The terms should be considered before unusual responsibilities are agreed.

Which terms can create insurance issues? #

Examples include:

• Broad indemnities.
• Unlimited liability.
• Guarantees of tax, financial or other outcomes.
• Responsibility for matters outside the Accountant’s control.
• Liability for third parties or outsourced providers.
• Unusual warranties.
• Obligations extending beyond the normal professional duty.

A contract can create liability that the Accountant may not otherwise have at law. That additional contractual liability may not be fully insured.

What about liability caps? #

A reasonable limitation of liability may help manage exposure, but its suitability and enforceability are legal matters.

Accountants should also consider any professional standards, scheme requirements or regulatory obligations affecting their ability to limit liability.

Does a Certificate of Currency confirm the contract is covered? #

No. It confirms limited policy details but does not establish that every service, indemnity or contractual obligation is insured.

Can Webber Insurance review the requirements? #

Webber Insurance can provide a high-level review of insurance clauses and identify provisions that may affect placement or coverage.

We do not provide legal advice. Where the contract needs legal interpretation, negotiation or amendment, we can arrange referral for a more detailed contractual insurance review.