Find out more on the Financial Services Register.We are a division of Markel International, a Lloyd’s of London market insurer that wrote gross premium totals of £2.4bn in 2023 Markel Direct is a trading name of Markel International Insurance Company Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Find out more on the Financial Services Register.
| Policy Feature | Requirement | Purpose / Rationale |
|---|---|---|
| Run-off Cover | Minimum 6 years post-termination | Covers claims arising from work done while insured |
| Breach of Confidentiality | Must be included | Protects against inadvertent data disclosure |
| Loss of Documents | Must be included | Covers costs of replacing or restoring documents |
| Libel and Slander | Must be included | Protects against defamation claims |
| Fidelity Guarantee | Optional but recommended | Covers client money dishonesty by employees |
We are a division of Markel International, a Lloyd’s of London market insurer that wrote gross premium totals of £2.4bn in 2023 As a specialist insurer of accountants and bookkeepers, we provide a range of useful services for you to access, included as standard with certain covers: With effect from 1 September 2023, the ACCA has introduced new Professional Indemnity Insurance (PII) regulations. PII is a mandatory purchase for practising ACCA members in the UK and Ireland and a PII policy is there to cover you in the event a mistake is made, for which you are sued or investigated (or both). The update in regulation comes as part of a series of planned modernisation and improvements to the Global Practising Regulations and the ACCA Rulebook. This is in light of significant change in the PII insurance market in recent times and the importance of PII in the public interest. In summary, the update in regulation is a simplification of the rules.
We will guide you through the quotation process, offering clear advice and practical support to help you find the right level of cover for your business. All calls are free of charge through our 0800 numbers. If it is more convenient, you can request a callback and one of our advisers will contact you at a time that suits you. To get started, simply complete our online form or contact our team directly. More than 27,000 clients choose Nova Insurance to protect their businesses with dependable and specialist insurance solutions tailored to their needs.
That is why we can provide instant cover when required, with policy documents sent directly to your email within minutes of confirmation. Even a small mistake in accounts submitted to HM Revenue and Customs can lead to unexpected tax bills for clients. If this happens, they may hold your business responsible and pursue legal action to recover their losses. Nova Insurance offers tailored cover for accountants that can include Professional Indemnity Insurance, helping to protect your firm against legal costs and compensation claims. This support applies whether the issue is a genuine error or an unfounded allegation, giving your business greater peace of mind when working with clients. Although there are a number of amendments, we have outlined below those that we see as most notable. The minimum limit of indemnity has increased from £50,000 to £100,000. This mirrors the minimum level for ICAEW members. The ‘twenty-five times the largest fee’ multiplier has been removed to calculate PII limits and instead has been replaced with new bandings: For firms generating income under £600,000, the PI limit needs to be the greater of two and a half times the relevant total income or £100,000For firms generating income in excess of £600,000 the minimum limit of indemnity is set at £1.5Million. For firms generating income under £600,000, the PI limit needs to be the greater of two and a half times the relevant total income or £100,000 For firms generating income in excess of £600,000 the minimum limit of indemnity is set at £1.5Million. Where firms have (in some cases) needed to purchase significant limits on their PII policy, the changes in regulation mean that they may now be able to purchase a lower limit moving forwards – which could help to reduce the costs of their PII policy. Combine this with signs of a softening market, this will be welcome news for ACCA member firms.
If you would like to discuss this topic further and understand the implications this may have on your firm, please don’t hesitate to contact the team. In the meantime, you can find out more about the new regulations on the ACCA website.
In particular, the updates made a number of amendments to the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLRs). Although many of the changes do not affect accountancy firms, there are certain areas of which they should be aware: All supervised firms are now required to perform a proliferation financing (PF) risk assessment to assess the risk that it may be used to enable proliferation financing Discrepancy reporting requirements are no longer limited to the onboarding stage of a business relationship, but have become an ongoing obligation The MLRs have been widened to apply to Limited Partnerships registered in England and Wales and Northern Ireland (Scottish Limited Partnerships are already subject to the regulations). Failure to comply with AML regulations can have serious consequences for the offending firm, including fines and sanctions, criminal proceedings and significant reputational damage. Firms at the point of renewal for their PI cover should anticipate additional scrutiny from insurers around the newly introduced regulations. On 1 August 2022, the UK government introduced the register of overseas entities (ROE): a new requirement for all overseas entities that own property in the UK to record information about themselves and their beneficial owners on a new register at Companies House by 31 January 2023.
As part of the registration process, accountants may be required to perform verification of an overseas entity’s registrable beneficial owners. By nature, this is risky work, as an overseas entity will involve corporate structures spanning multiple jurisdictions. The inclusion of a strict liability within the ROE regime raises the possibility that any firm undertaking verification work will be exposed to possible criminal prosecution, regulatory sanction, and reputational damage should the verification function not be performed correctly. Firms’ increased liabilities under the ROE are already giving insurers cause for concern. The heightened exposure of accountancy firms to overseas entities raises the possibility that such firms will be used for the purposes of money-laundering or sanctioned individuals, where it is not possible to correctly identify true ownership. Paul has 25 years’ experience securing Professional Indemnity insurance for his clients.
This is to counteract issues such as where some insurers state ‘when PI cover was first purchased’, which places onus on the insured to prove they have had cover for past liability.
He and his team support financial and construction professionals with insurance, risk mitigation, and claims management. At Nova Insurance, we provide dedicated support for accountants and bookkeeping professionals across the United Kingdom. Our UK based team is available six days a week to assist you with your insurance needs. We will guide you through the quotation process, offering clear advice and practical support to help you find the right level of cover for your business. All calls are free of charge through our 0800 numbers. If it is more convenient, you can request a callback and one of our advisers will contact you at a time that suits you. To get started, simply complete our online form or contact our team directly.
Find out more on the Financial Services Register.We are a division of Markel International, a Lloyd’s of London market insurer that wrote gross premium totals of £2.4bn in 2023 Markel Direct is a trading name of Markel International Insurance Company Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Find out more on the Financial Services Register. We are a division of Markel International, a Lloyd’s of London market insurer that wrote gross premium totals of £2.4bn in 2023 As a specialist insurer of accountants and bookkeepers, we provide a range of useful services for you to access, included as standard with certain covers: With effect from 1 September 2023, the ACCA has introduced new Professional Indemnity Insurance (PII) regulations. PII is a mandatory purchase for practising ACCA members in the UK and Ireland and a PII policy is there to cover you in the event a mistake is made, for which you are sued or investigated (or both). The update in regulation comes as part of a series of planned modernisation and improvements to the Global Practising Regulations and the ACCA Rulebook.
This is in light of significant change in the PII insurance market in recent times and the importance of PII in the public interest. In summary, the update in regulation is a simplification of the rules. Although there are a number of amendments, we have outlined below those that we see as most notable. The minimum limit of indemnity has increased from £50,000 to £100,000. This mirrors the minimum level for ICAEW members. More than 27,000 clients choose Nova Insurance to protect their businesses with dependable and specialist insurance solutions tailored to their needs. That is why we can provide instant cover when required, with policy documents sent directly to your email within minutes of confirmation. Even a small mistake in accounts submitted to HM Revenue and Customs can lead to unexpected tax bills for clients. If this happens, they may hold your business responsible and pursue legal action to recover their losses. Nova Insurance offers tailored cover for accountants that can include Professional Indemnity Insurance, helping to protect your firm against legal costs and compensation claims. This support applies whether the issue is a genuine error or an unfounded allegation, giving your business greater peace of mind when working with clients. If your accountancy office is targeted by thieves, the impact can be serious.
If your accountancy office is targeted by thieves, the impact can be serious. Modern practices often rely on laptops, monitors, and communication equipment for day to day client work and remote meetings. If these items are stolen bet betting odds comparison app during a break in, it can disrupt your ability to operate and serve your clients effectively. Business contents insurance can help cover the cost of replacing essential equipment, allowing your practice to recover more quickly and continue working with minimal downtime. Many accountants who belong to organisations such as the AAT or ACCA are required to hold a minimum level of Professional Indemnity Insurance to maintain their membership.
At Nova Insurance, we offer cover that meets these requirements, helping you stay compliant while your services and experience grow over time. New regulations have significant implications for accountants A series of new regulations, either recently introduced or due to come into force, are set to bring significant implications for the accountancy sector. For firms, these new regulations (around anti-money laundering, register of overseas entities, probate and PII) create risks, at such time until they are embedded into business-as-usual practices. In order to minimise the likelihood of increased premiums, accountancy firms should take steps to familiarise themselves with the regulations and implement necessary changes as soon as possible. In September 2022, updates to the existing UK anti-money laundering (AML) legislation came into force. Modern practices often rely on laptops, monitors, and communication equipment for day to day client work and remote meetings. If these items are stolen bet betting odds comparison app during a break in, it can disrupt your ability to operate and serve your clients effectively. Business contents insurance can help cover the cost of replacing essential equipment, allowing your practice to recover more quickly and continue working with minimal downtime. Many accountants who belong to organisations such as the AAT or ACCA are required to hold a minimum level of Professional Indemnity Insurance to maintain their membership. At Nova Insurance, we offer cover that meets these requirements, helping you stay compliant while your services and experience grow over time.
Following the withdrawal of the Association of Chartered Certified Accountants (ACCA) from legal services, all accountancy firms wishing to offer probate work to their clients must set up a separate limited company or LLP firm to be designated as a CILEx-ACCA Probate Entity. All owners and directors of the Probate Entity must also be authorised as CILEx Practitioners, which requires first successfully completing an accredited course and assessment with an approved provider, covering specific areas of probate work. In the absence of standalone insurance products for probate work, all work conducted by the Probate Entity must be covered under the accountancy firm’s general professional indemnity (PI) insurance. In addition to the above external regulations, changes to the ACCA professional indemnity (PI) insurance regulations are due to come into effect in September 2023. The minimum limits of indemnity will increase from £50,000 to £100,000, which will affect smaller practices.
It has been recognised for some time that this limit is not sufficient to reflect increasing legal costs and claim payments. Other income bands and limits have also changed. The minimum limit for Fidelity Guarantee Insurance (FGI) has increased from £50,000 to £100,000 and firms need to ensure sub-contractors are covered. This is an area where we’ve seen a number of claims in recent years. Retroactive cover requirements have been introduced and PII policies should include full retroactive cover ie from the date the practice commenced. New regulations have significant implications for accountants A series of new regulations, either recently introduced or due to come into force, are set to bring significant implications for the accountancy sector. For firms, these new regulations (around anti-money laundering, register of overseas entities, probate and PII) create risks, at such time until they are embedded into business-as-usual practices. In order to minimise the likelihood of increased premiums, accountancy firms should take steps to familiarise themselves with the regulations and implement necessary changes as soon as possible. In September 2022, updates to the existing UK anti-money laundering (AML) legislation came into force. In particular, the updates made a number of amendments to the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLRs). Although many of the changes do not affect accountancy firms, there are certain areas of which they should be aware: All supervised firms are now required to perform a proliferation financing (PF) risk assessment to assess the risk that it may be used to enable proliferation financing Discrepancy reporting requirements are no longer limited to the onboarding stage of a business relationship, but have become an ongoing obligation The MLRs have been widened to apply to Limited Partnerships registered in England and Wales and Northern Ireland (Scottish Limited Partnerships are already subject to the regulations). Failure to comply with AML regulations can have serious consequences for the offending firm, including fines and sanctions, criminal proceedings and significant reputational damage. Firms at the point of renewal for their PI cover should anticipate additional scrutiny from insurers around the newly introduced regulations.
On 1 August 2022, the UK government introduced the register of overseas entities (ROE): a new requirement for all overseas entities that own property in the UK to record information about themselves and their beneficial owners on a new register at Companies House by 31 January 2023. As part of the registration process, accountants may be required to perform verification of an overseas entity’s registrable beneficial owners. By nature, this is risky work, as an overseas entity will involve corporate structures spanning multiple jurisdictions.
The ‘twenty-five times the largest fee’ multiplier has been removed to calculate PII limits and instead has been replaced with new bandings: For firms generating income under £600,000, the PI limit needs to be the greater of two and a half times the relevant total income or £100,000For firms generating income in excess of £600,000 the minimum limit of indemnity is set at £1.5Million. For firms generating income under £600,000, the PI limit needs to be the greater of two and a half times the relevant total income or £100,000 For firms generating income in excess of £600,000 the minimum limit of indemnity is set at £1.5Million. Where firms have (in some cases) needed to purchase significant limits on their PII policy, the changes in regulation mean that they may now be able to purchase a lower limit moving forwards – which could help to reduce the costs of their PII policy. Combine this with signs of a softening market, this will be welcome news for ACCA member firms. If you would like to discuss this topic further and understand the implications this may have on your firm, please don’t hesitate to contact the team.
In the meantime, you can find out more about the new regulations on the ACCA website. Paul has 25 years’ experience securing Professional Indemnity insurance for his clients. He and his team support financial and construction professionals with insurance, risk mitigation, and claims management. At Nova Insurance, we provide dedicated support for accountants and bookkeeping professionals across the United Kingdom. Our UK based team is available six days a week to assist you with your insurance needs. The inclusion of a strict liability within the ROE regime raises the possibility that any firm undertaking verification work will be exposed to possible criminal prosecution, regulatory sanction, and reputational damage should the verification function not be performed correctly. Firms’ increased liabilities under the ROE are already giving insurers cause for concern. The heightened exposure of accountancy firms to overseas entities raises the possibility that such firms will be used for the purposes of money-laundering or sanctioned individuals, where it is not possible to correctly identify true ownership. Following the withdrawal of the Association of Chartered Certified Accountants (ACCA) from legal services, all accountancy firms wishing to offer probate work to their clients must set up a separate limited company or LLP firm to be designated as a CILEx-ACCA Probate Entity. All owners and directors of the Probate Entity must also be authorised as CILEx Practitioners, which requires first successfully completing an accredited course and assessment with an approved provider, covering specific areas of probate work. In the absence of standalone insurance products for probate work, all work conducted by the Probate Entity must be covered under the accountancy firm’s general professional indemnity (PI) insurance.
| ACCA Member Type | Minimum Limit of Indemnity | Maximum Deductible | Coverage Requirement |
|---|---|---|---|
| Practising Certificate Holder (Audit) | GBP 1,500,000 | GBP 5,000 | Per claim, any one occurrence |
| Practising Certificate Holder (Non-Audit) | GBP 500,000 | GBP 2,500 | Aggregate for all claims |
| Insolvency Practitioner | GBP 2,500,000 | GBP 10,000 | Per claim, any one occurrence |
| Member in Business (Non-Practising) | Not Mandatory | N/A | Recommended by employer |
In addition to the above external regulations, changes to the ACCA professional indemnity (PI) insurance regulations are due to come into effect in September 2023. The minimum limits of indemnity will increase from £50,000 to £100,000, which will affect smaller practices. It has been recognised for some time that this limit is not sufficient to reflect increasing legal costs and claim payments. Other income bands and limits have also changed. The minimum limit for Fidelity Guarantee Insurance (FGI) has increased from £50,000 to £100,000 and firms need to ensure sub-contractors are covered. This is an area where we’ve seen a number of claims in recent years. Retroactive cover requirements have been introduced and PII policies should include full retroactive cover ie from the date the practice commenced. This is to counteract issues such as where some insurers state ‘when PI cover was first purchased’, which places onus on the insured to prove they have had cover for past liability.