ACCA's Specific Requirements for Cyber Liability Coverage

Professional Indemnity Insurance (PII) covers you for civil liability claims arising from your work in private legal practice. These claims most commonly involve professional negligence. Having appropriate PII in place is important because it: helps ensure that consumers do not suffer loss, which might otherwise be uncompensated maintains public confidence in the integrity and standing of entities regulated by us If your entity is authorised and regulated by us, you are required to take out and maintain PII in accordance with the Professional Indemnity Insurance Rules. Prior to authorisation from us you will have to demonstrate that you have or are obtaining an insurance policy.

• Update the policy promptly if you change your address, as the postcode affects the risk assessment.
• Add or remove drivers from the policy as circumstances change to avoid coverage issues.
• Cancel the policy correctly through the insurer if selling or scrapping the vehicle; do not just let it lapse.
• Be aware of cooling-off periods and cancellation fees when taking out or ending a policy.
• Review the policy annually at renewal to ensure it still meets your needs and remains competitive.
• Compare quotes from different insurers to ensure you are getting suitable coverage at a fair price.

You are unable to practise until you have the PII in place and this should remain in place throughout all the time that you practise. If you are running an unregulated business, you should consider the benefit of having PII in place.

What This Guide Covers

Your PI insurance policy should provide adequate cover for the services your accountancy business offers and the unique risks you face. Civil liability (such as damages and costs) for breach of duty. Legal fees and expenses in defending a claim. Helplines to provide guidance on managing risks. Our dedicated team of PI insurance experts is focused on providing a high standard of service to the professional services sector. Select a broker to help you secure insurance and advise them who our qualifying insurers are.

• Choose an appropriate level of cover: Third-Party Only (TPO), Third-Party Fire and Theft (TPFT), or Comprehensive.
• Consider optional add-ons like breakdown cover, legal expenses insurance, or courtesy car provision.
• Review the policy excess amounts (compulsory and voluntary) and ensure they are affordable.
• Check if the policy includes coverage for personal belongings or audio equipment.

Decide whether the minimum level of cover of £2 million is sufficient.

Exclusion Type	Typical Policy Wording	Implication for Practice	Mitigation Option
Fraud & Dishonesty	Claims arising from dishonest, fraudulent, or criminal acts.	No cover for intentional wrongdoing by the insured.	Fidelity guarantee insurance (separate policy).
Known Claims & Circumstances	Claims arising from circumstances notified under a previous policy.	Highlights importance of disclosing all prior issues.	Full disclosure on proposal forms.
Contractual Liability	Liability assumed under a contract beyond normal duty of care.	Uncovered if you sign a contract with an onerous liability clause.	Careful contract review before signing.
Insolvency Practitioner Work	Specific exclusion for IP work unless agreed.	Standard PII may not cover this higher-risk activity.	Specific extension or separate policy needed.

Complete the Professional Indemnity Application Form once, which can then be used with all our qualifying insurers.

Key areas of risk for Accountants

Working with Marsh Commercial provides you with additional benefits such as: An in-house team of specialist claims handlers. Free 24-hour legal and counselling advice helplines. Free tax advice helpline for you and on behalf of your clients. As part of Marsh, global leader in insurance broking and risk management, we have the ability to evolve your cover as your business grows. We support a full range of accountancy clients including those engaging in more complex activities, such as: Policy exclusions and restrictions may exist based on your unique requirements. Once you have agreed a quote, do not put the cover on risk until you have received provisional authorisation.

Verifiable vs Non-Verifiable CPD

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. We offer specialist advice for your business. Our PI insurance experts have a wealth of experience, and work with a wide range of insurers to find you the right cover bet free bets today football on competitive terms. PI insurance provides you with protection should your client claim they have suffered financial loss as a result of your professional negligence, which could involve: Breach of a professional duty of care. Once you have received provisional authorisation, put your PII on risk and arrange for a copy of the insurance certificate to be sent to us.

ACCA CPD: The Basics

It’s important to look carefully at the policy conditions: do these state that the accountancy firm’s own accounts must be independently certified or audited on an annual basis for FGI to apply? Since most firms don’t otherwise need their accounts audited, this has the effect of excluding first-party fraud losses, thereby becoming non-compliant with ACCA’s regulations. It’s becoming more common for insurers that offer FGI to ask for Multi Factor Authorisation (MFA) to be in place for any financial transactions over a certain amount. For example, insurers may insist that there are two independent signatures on cheques, or that any electronic transfer of funds is witnessed and documented by another director or employee. If this second authorisation check is not made, any subsequent first-party fraud may not be covered by the policy and insurers may refuse the claim.

4.1 The ACCA sliding scale

Often, an insurer will ask on their proposal form or statement of fact whether the annual accounts have been audited and if MFA is in place. This acts to alert the firm that these procedures must be in place for FGI cover to apply. Other insurers will simply include these terms within the conditions or exclusions of their policy wording, so this should always be checked to ensure coverage is compliant with ACCA regulations. As fraud becomes increasingly prevalent, many insurers are beginning to leave FGI cover out completely in their accountants' PII policies. To ensure that you have cover that meets the ACCA’s requirements and to adequately protect your firm, we recommend: The policy should have a separate insuring clause or extension headed ‘Fidelity’, and the insuring clause should contain language along the lines of: ‘insurers will indemnify the Insured for any loss which the Insured shall first discover they have sustained by reason of any dishonest or fraudulent act or omission’ check the policy wording to make sure that there are no onerous terms or conditions that must be fulfilled for FGI cover to be valid. The links to the left will help you obtain your PII.

What does accountant's insurance cover?

Third-party fraud and dishonesty refer to theft of the client’s money, as opposed to the accountancy firm's own money, and is usually covered within the main insuring clause (civil liability) of a professional indemnity policy. Fraud claims have increased in both frequency and value in the past few years. There are several reasons for this, but the main factor is that online banking makes it so much easier to fraudulently transfer money. Lockton has handled many claims for first- and third-party fraud. In one case, a member of staff was able to transfer funds from both the accountancy firm’s own bank account and those of its clients directly into the bank accounts of close relatives.

10.1 PI minimums

This took place over a period of eight years and over £600,000 was misappropriated. The member of staff held a trusted position as a bookkeeper within the firm. Some insurers will only offer FGI on an aggregate basis, rather than any one claim. This limits the amount insurers are exposed to in a policy period, as once the aggregate limit is eroded by any losses, they will not be required to pay any more. This kind of aggregate cover would not be compliant with ACCA regulations, as cover must be on an ‘any-one-claim’ basis. We recommend that you instruct a broker to help you secure insurance. Our Buyers’ Guide to Professional Indemnity on the left-hand side of this page provides you with further information on instructing a broker.

Pathways to Membership

If you are in any doubt, please feel free to call the Lockton helpline on 0117 906 5057, and we will be happy to assist and provide a free health check on your insurance. As ACCA’s recommended and approved broker, Lockton offers an ACCA insurance scheme that is backed by Allianz Insurance plc and fully complies with ACCA’s regulatory requirements. Quotations can be bet betting apps with sign up bonus uk obtained by calling the number above, emailing accountants@uk.lockton.com or visiting Lockton's website. Visit our Accountants page for more information, or reach out to a member of our team. At Nova Insurance, we provide dedicated support for accountants and bookkeeping professionals across the United Kingdom.

Our customers say...

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. Under our Rules, PII cover must be obtained from a qualifying insurer. A qualifying insurer is an insurer that: Is authorised and regulated to conduct insurance business in the UK by the Financial Conduct Authority (FCA) Has a credit rating from AM Best of at least B+ or, Standards & Poor’s rating of at least Category BBB (CILEx Regulation does not undertake any additional steps to regulate, vet or approve qualifying insurers) Has signed the CILEx Qualifying Insurers Agreement We provide a list of qualifying insurers which can be found on the left-hand side of this page The minimum level of cover is £2 million and applies regardless of the actual wording of the policies.

Type of Non-Compliance	Potential Disciplinary Action by ACCA	Additional Risks
Practising without valid PII	Suspension or withdrawal of Practising Certificate; fines.	Personal liability for all claims; inability to trade legally.
Inadequate level of cover	Requirement to rectify; possible conditions on certificate.	Gap in coverage leading to significant personal financial loss.
Failure to notify ACCA of policy lapse	Investigatory procedures; reputational damage.	Automatic suspension of public practice rights.
Misrepresentation on application	Severe misconduct finding; expulsion from membership.	Policy could be voided, leaving no cover at all.

The minimum level of cover is contained within the Qualifying Insurers Agreement (QIA).

What is accountants’ insurance?

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.

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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. Modern practices often rely on laptops, monitors, and communication equipment for day to day client work and remote meetings. If these items are stolen 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. Each of our insurers sign up to the QIA, which requires qualifying insurers to offer a level of cover which should meet the CILEx Minimum Wording (found on the left-hand side of this page) What if £2 million is not enough?