Professional indemnity insurance
Under the ICAS Public Practice Regulations, every Practising Certificate (PC) holder resident in the UK or Ireland must ensure that their firm has appropriate Professional indemnity insurance in place that meets the requirement of these regulations.
Professional indemnity insurance helps protect you if claims are brought against you by a client due to a problem with the work you have done for them.
The client is also protected in that there is recourse to the firm's PII insurance if dissatisfied with an aspect of work undertaken. This distinguishes our PC holders from unqualified accountants who have no requirement to hold PII.
ICAS Public Practice Regulations
ICAS Professional Indemnity Insurance Regulations
Where can I get PII?
Your PII policy must be arranged with a Participating Insurer from the ICAS List of Participating Insurers as these insurers issue policies that comply with our Minimum Approved Wording.
An insurance broker will be able to advise you of the most suitable policy for your firm.
Please also refer to the ICAS Guidance for Obtaining Professional Indemnity Insurance that provides guidance on matters to consider when considering your PII requirements.
What information do I need to provide to ICAS?
When you apply for a PC, you will be asked for details of your firm's PII insurance.
Annually, thereafter, your firm will require to provide ICAS with a Declaration of Compliance (PII) . The declaration will be requested by ICAS around the time of your insurance renewal so that ICAS is kept informed of your PII cover for the year (or period) ahead.
Please note that you no longer need the form stamped and signed by your insurance broker. You now need to provide a copy of your Schedule of Cover note with your Declaration of Compliance Form. The Schedule should include the following information: period of cover, sum insured figure and excess figure of the policy.
What do I do if I can’t get PII?
If you can't get PII you will need to apply to enter the Assigned Risks Pool that will provide you with emergency PII cover. This is explained in Section 9 of the Professional Indemnity Insurance Regulations. For any enquiries about entry into the Assigned Risks Pool, please contact:
The Accountants' Assigned Risks Pool Managers, a division of Marsh Limited
Victoria House, Queens Road, Norwich, NR1 3QQ
Tel. 01603 207 652
Fax. 020 7929 2705
Why do I need PII when I cease practice?
You need to ensure that your firm is covered for any claims that may arise after you cease practice. You are required to have run off cover for at least 24 months after ceasing in practice. The Guidance for Obtaining Professional Indemnity Insurance and the Professional Indemnity Insurance Regulations provide more information on this.
What information do we need to provide about our firms PII?
The General Practice Procedures Manual (GPPM) provides information on disclosure requirements.
Why have I been asked to register my firm with ICAS?
Sometimes, usually through our Practice Monitoring visits, we identify that PC holders have not notified ICAS of every firm in which they are principals. As we are obliged to monitor all the work of our PC holders, through our Practice Monitoring regime, and monitor every firm's PII compliance, both in the public interest, we need to have full information regarding all of your firms.