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PI Insurance- cheaper alternatives?

Fees reducing due to imminent retirement

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Morning all- being "past retirement age" and wishing to spend more time in Spanish home I've deliberately let my fees fall (just to keep myself occupied).  Not bothering to replace PSCs and several who sadly passed away.

Estimated fee income to 2022 will be only £16,000 for "my" clients.  Prefer to do iuncreasing subcontract work for other Chartered Accountants who have confirmed I am specifically mentioned thus on their PI insurance.  Less stress less hassle!

Whilst happy with my current provider, I am caught by minimum premium level which they cannot avoid.  

Wonder if any other qualified practitioners, either on start-up or "end-up" are in the same position and have found reputable ICAEW-approved PI insurers with lesser minimum premiums?  

PLEASE NOTE- This is NOT an invitation to be bombarded by brokers.  Any such doing so will get nowhere. (You shouldn't be advertising here anyway)

Appreciate responses purely from other qualified practitioners, please.  Thanks for any such help,

Replies (13)

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the sea otter
By memyself-eye
03rd Sep 2021 10:11

How much is their minimum fee?

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Replying to memyself-eye:
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By WallyGandy
03rd Sep 2021 13:08

Thanks for response- I omitted to say that!! 2020 was £857 with a £750 excess

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Replying to WallyGandy:
RLI
By lionofludesch
03rd Sep 2021 23:17

WallyGandy wrote:

Thanks for response- I omitted to say that!! 2020 was £857 with a £750 excess

Wow! I've been paying less than £250 a year on a lot more than £16000 turnover. Lower excess too.

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Replying to lionofludesch:
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By WallyGandy
05th Sep 2021 08:35

With whom please? (Such is the reason for my post!!)

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By Paul Crowley
03rd Sep 2021 10:16

With ICAEW I think there is a minimum cover that is quite high

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By zebaa
03rd Sep 2021 12:17

Here is a suggestion, because at £16,000 gross, I doubt the overheads make it worthwhile. Consider PAYE, like another esteemed poster to this site. You will need another accountant who then employs you, but you bring over your list.

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By ireallyshouldknowthisbut
03rd Sep 2021 12:36

I would have thought you would be a higher risk for the insurers as whilst you may be as on the ball as you were 25 years ago, a lot of accountants carry on longer than they ought which will taint the risk pool, so not sure you will get anything really cheap.

One way of cutting your costs would be to resign from the ICAEW and joining the IFA. Lots of posters on here are member and could tell you more, but I understand they have built in PI (??)

I am an ICAEW member and would not take resignation lightly, but is worth considering when you are down to "hobby level" income.

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Replying to ireallyshouldknowthisbut:
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By WallyGandy
03rd Sep 2021 13:10

Funny you should say that- it has crossed my mind very often, but I guess "Kudos" keeps me with ICAEW.

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Replying to WallyGandy:
By ireallyshouldknowthisbut
03rd Sep 2021 14:16

I know what you mean, whilst clients don't really care it meant a huge amount to me personally to qualify and I am not sure I will be willing to give that up for what I think is £200 or something as a non-practising retired member.

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boxfile
By spilly
03rd Sep 2021 14:04

The ICPA also has PI insurance included in their fees. Should come in at about half of those costs in total.

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Replying to spilly:
By ireallyshouldknowthisbut
03rd Sep 2021 14:17

That might be who I was thinking of above.

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By thomas34
03rd Sep 2021 14:26

As a former ICAEW member and in a similar position to the OP I pay £220 p.a. to Brunel (previously £360 to Hiscox). As 17 years without the Kudos it seems I've saved a lot of money.

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By WallyGandy
04th Oct 2021 21:24

Hi and many thanks to all. Took time but premium now halved. Happy to share good news. Thanks agaub

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