Hi all
Our accounting firm’s professional indemnity insurance is due for renewal and I’ve noticed a sharp increase in the price of the quotes that we are receiving. An increase of around 40% compared to the previous year! Our circumstances have not changed either (other than the firm’s turnover increasing by around 11%). We’ve been told by our current insurers that all accountants are experiencing this issue due to the professional indemnity insurance market for accountants hardening.
Have other accountants experienced this issue as well?
We are also looking into insurers who also offer tax advice helpline services as part of the insurance package (like Bluefin insurance). Can anyone recommend any other professional indemnity insurers who offer services like this as well?
Thanks for your help
Replies (17)
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not me - mine has increased by a few quid only (£4 - about 3%)
It's with AXA.
It's about the only cost of doing business that hasn't doubled or tripled!
not me - mine has increased by a few quid only (£4 - about 3%)
Are you paying £130 per year then? That seems unbelievably cheap. Are you part-time?
part time -my wife would agree with that - but we are a small business and long may it remain so......
Me neither - can't remember how much it went up (from 1 April 2019) but it was an insignificant sum. A tenner, happen. Not enough to make me shop around.
Has your turnover increased significantly ?
Mine comes via my ICPA membership so cannot really comment, from memory £300,000 cover included within the subs (plus access to Bloomsbury titles , AMLC access and some CPD etc), extra costs may apply if fees > £250k.
https://www.icpa.org.uk/benefits/administration/300000_professional_inde...
I heard the same guff 2 years ago when my then broker tried to double my PI.
I subsequently found [email protected] and have had decent quotes and service since.
I am with Hiscox (although I think they have changed their name now).
It is my lowest cost and just seems to go up with inflation I have £300k of cover as others have mentioned.
£300k of cover doesnt seem very much. I think most institutes recommend 2.5x Annual Fees. £300k would only cover your for under £120k GRF.
I will look into that as I gave them all the correct income details when I renewed.
They gave me £300k worth of cover from day 1 when fees were under £20k
We also get our insurance as members of ICPA.
Our turnover much the same as yours, £300k, and we need to have 2.5 x cover so have £750k.
Ours did jump this year but our cover increased from £500k to £750k. Think went up to about £400.
That's very cheap! Who provides the insurance? I'm insured with Hiscox via Aon and it's a lot higher than that.
I suspect the cost is lower as the first £300k of cover is covered (included) within the ICPA sub cost so I presume the cost is really for the remaining £450k cover.
"The ICPA Group PI Insurance Scheme is fully ICAEW COMPLIANT and is administered by Vantage Protect"
https://www.icpa.org.uk/benefits/administration/300000_professional_inde...
If you're a member of SPA, they have a relationship with Arlington Professional Risks, who I always found brilliant, and not expensive. I had a very small practice.