Financial Services
Professional Indemnity Insurance for Accountants
Accountants and auditors carry professional liability for the accuracy of financial statements, tax advice and assurance work. Professional Indemnity protects your practice against claims of negligent advice or error.
Why it matters
Why accountants need Professional Indemnity
- SAICA, SAIPA and IRBA-linked obligations generally require adequate PI cover.
- Tax and audit errors can result in significant client financial loss and regulatory scrutiny.
What does Accountant PI cover?
- ✓Claims arising from alleged negligent accounting, tax or audit advice.
- ✓Defence costs in responding to professional negligence claims.
Common exclusions
- –Deliberate or fraudulent acts.
- –Fidelity exposure where client funds are handled — needs separate cover.
Real scenarios
Common Accountant PI claims
Tax advice disputes
Claims linked to alleged incorrect tax structuring or filing advice.
Audit sign-off disputes
Claims where audit opinions are later disputed by shareholders or regulators.
How much PI cover does an accountant need?
Limits should reflect the size of clients served and the materiality of the financial statements or advice you provide.
What affects the premium?
- Annual fee income
- Split between accounting, tax and audit work
- Largest client turnover
- Claims history
What information insurers require
- • Annual fees
- • Services provided (accounting, tax, audit, bookkeeping)
- • Largest client size
- • Claims history
Retroactive cover
Retroactive date should reflect the start of your accounting practice or professional registration.
Run-off cover
Run-off cover is important when a practice merges, is sold, or a sole practitioner retires.
FAQ
Frequently asked questions
While not always compulsory, bookkeepers carry the same advice-based liability exposure and PI cover is strongly recommended.
Get your Accountant PI quote
One simple online application, tailored to how accountants actually work.
Related professions
Related covers
- Fidelity Guarantee →
Where the practice handles client funds or trust accounts.
- Cyber Liability →
Protects sensitive client financial data.