Professional Indemnity Insurance and Cyber Insurance address different risks faced by accounting practices. Holding one should not automatically be treated as a replacement for the other.

What does Professional Indemnity address? #

Professional Indemnity may respond to certain claims alleging financial loss from professional services, including accounting or tax errors, incorrect advice, missed deadlines or other professional negligence.

What does Cyber Insurance address? #

Depending on the policy, Cyber Insurance can cover:

• Data breaches and privacy claims.
• Ransomware and cyber extortion.
• Incident response and forensic costs.
• System interruption and recovery.
• Notification and crisis-management costs.
• Certain cyber-related liability claims.

The policy may also provide access to specialist incident-response services.

Can one incident involve both policies? #

Yes. A cyber incident could interrupt the practice, expose client data and lead to an allegation that professional obligations were not met.

Different parts of the matter may need to be considered under different policies. Notify Webber Insurance promptly so the relevant insurers can be identified.

Does Professional Indemnity include full Cyber Insurance? #

Not usually. Some Professional Indemnity policies contain limited cyber or privacy extensions, but they should not be assumed to provide the same protection or response services as standalone Cyber Insurance.

Accounting practices can hold tax records, identity information, banking details, payroll data and other confidential information. Their cyber exposure extends beyond replacing damaged computer equipment and may include legal, regulatory, operational and client consequences.