Insurance for financial reporting

Why do I need professional indemnity insurance?

Because without it, you’d have to defend yourself from any allegations, and chances are, you don’t have the legal expertise.

Of course, you could always hire your own solicitor, but the last time we checked, they weren’t cheap. And when you’re trying to run a business, do you really have the time to act as your own solicitor anyway?

PI insurance saves you three very important things: time, money, and your reputation.

Without it, you may find clients are reluctant to work with you. PI insurance ensures that, if you mess up, they won’t be left empty-handed and out of pocket.

What level of cover do I need?

If you’re a member of a professional body for accountants, you may find they specify a minimum level of cover. Check with your specific professional body to find out what their requirements are.

In some cases, your client may specify a minimum level of indemnity that they’d like you to hold. If they don’t, however, it’s completely up to you.

When deciding on a level of cover, consider this: what’s the most expensive mistake you could make? Think about the nature of your work (what you’re being asked to do), the size and type of your clients (the bigger and richer, the greater the risk), and your level of responsibility.

To be on the safe side, always buy as much insurance as your budget allows. Scrimping on you cover really won’t do you any favours if you need to claim.

What does professional indemnity insurance cover?

Negligence claims and allegations made against you by clients and third parties, because of mistakes you’ve made and things you’ve failed to do.

Specifically (but depending on the policy wording):

• Defamation
• Intellectual property infringement
• Loss of documents
• Negligent misrepresentation or misstatement
• Employee dishonesty
• Virus transmission
• Breach of confidentiality

But that’s not all. Some professional indemnity policies can fix a mistake before your client is even aware of it, thereby preventing a claim in the first place.

What else do I need?

When buying your PI insurance, you should include retroactive cover. This backdates your cover to a date in the past before you took out the policy. It can sometimes take years for mistakes to become apparent, so retroactive over ensures you won’t be caught out by past work.

If you have employees, employers’ liability insurance is a legal requirement. This provides compensation for your employees if they suffer a workplace injury or illness and you’re to blame. It can also cover your legal fees.

Office and property insurance covers the things in your office (furniture, plants, fixed IT equipment etc) and portable insurance covers gadgets and technical equipment away from the office (laptops, tablets, projectors etc). If you’re not sure it’s worth insuring, add it all up – it’s probably worth more than you think.

Business interruption insurance means you can still work when your office is out of action. Be it flood, fire or flea infestation, you’re covered for the costs of setting up elsewhere and for any lost revenue in that time.

Directors’ and officers’ insurance covers your company bosses. Anyone from regulators to shareholders to competitors can accuse you of not running a business with due care. Worse, directors are personally liable for their actions. The good thing is this insurance covers your defence costs and any compensation you have to pay. So you can put away your chequebook.

Why should I buy my insurance from you?

We know what we’re doing. Professional insurance is all we do so we know what you need, even if you don’t.

We also know that buying insurance can be a bit of a pain. So we make sure getting yours is quick and hassle-free.

We do all that while treating you like a human being, too. You won’t find a call centre here. Or a phone menu. And we’ve banned nonsense insurance jargon.

Anything else? Well, there’s the free stuff you get. We have an ‘I’m insured!’ badge for your website – perfect for the professional professional.

Also, you get to talk about your business in front of thousands on our blog, and we’ll >give you money each time you recommend us.