Where Can You Get Accountancy Insurance?

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You can get accountancy insurance from a direct insurer or by using a broker. Still, only some underwriters are considered “qualifying insurers” by The Institute of Chartered Accountants in England and Wales (ICAEW) and the Association of Chartered Certified Accountants (ACCA). These professional organisations require members to obtain minimum limits of cover and have a policy that adheres to published minimum wording. Only some insurance providers are qualified, meaning they guarantee to offer this required wording.

Direct Line is the only insurance company that sells qualifying accountancy professional indemnity (PI) insurance directly to consumers. To access the rest of the market, you’ll need to use a broker. Brokers work with companies including household names like Aviva, Allianz, AXA, Chubb and more.

A broker may charge you fees to arrange, change or cancel a policy. But they can access a wide range of accountancy PI providers to help an accountant find the right insurance at the best price. To find an accountancy insurance broker you can submit details via a quote form with a website that offers a comparison service for accountancy professional indemnity, like Simply Business, QuoteZone or NimbleFins.

Brokers can provide access to both accountancy insurance companies as well as Lloyd’s syndicates. A Lloyd’s syndicate is formed by one or more members of Lloyd’s joining together to provide capital and accept insurance risks. Many syndicates will have areas of specific expertise, such as accountancy insurance.

Compare accountant insurance quote

To compare accountant insurance, you can start with a business insurance comparison site. These sites will take your information and connect you with providers (e.g., brokers) that may be able to offer you quotes for accountancy PI insurance. In some cases, you may be able to get online quotes instantly; in other cases, you may need to wait for a call back from a broker.

Brokers may call back with quotes, or they may first call you to gather a bit more information before going out to search the market on your behalf. You can also go directly to a broker, such as Towergate, skipping the comparison site.

The advantage of using the comparison site is that you may get access to a wider market segment since your details might be sent to more than one broker. But some people prefer to work with one broker and develop a relationship.

If you get quotes directly from an insurer (e.g., Direct Line), you might also want to get quotes via a broker to ensure that you’re getting the best price possible. Only getting one quote leaves you open to the risk of overpaying if the provider perceives you to be a higher risk than other providers might.

Accountancy insurance brokers

An accountancy insurance broker works for the client (e.g., the accountant) to find the right insurance at the best price. Brokers will take down necessary information about you and your business, and then they will research the market, contacting different insurance companies for quotes on your behalf. Brokers have relationships with a wide range of insurance companies that you wouldn’t otherwise be able to access.

After receiving quotes back from insurers, the broker will present the different options to the client. With an advised service, the broker may be able to make a recommendation regarding which quote is best based on the client’s needs.

Brokers are useful for gaining access to a wider selection of accountancy PI insurance providers, but they are also helpful in another way. Brokers can be an excellent resource for asking questions, such as how professional indemnity works. PI insurance can be confusing, and brokers can be a great resource to help you understand what you’re buying and to ensure it’s right for your needs.

Brokers can also help you to understand how much insurance you need. There are strict rules for chartered accountants regarding minimum insurance requirements. A good broker should be able to help you through the process of securing the right amount of coverage given the work you do and your turnover, and your most extensive account size.

Brokers can also talk you through other types of business insurance you might need, such as employers’ liability (if anyone works for you), buildings and contents insurance (e.g., to protect your premises and office equipment), cyber insurance and more.

While the insurance company pays the commission charged by a broker, some brokers charge their clients fees for arranging, renewing, changing or cancelling a policy. Understand these fees before you engage a broker.

Here is a list of Lloyd’s syndicates and insurance companies you can only access through a broker for accountancy insurance: