Even the most careful accountants can face unexpected issues. Whether it is a missed filing, an incorrect return, or client data being compromised, small mistakes can lead to significant claims. Accountancy insurance exists to help mitigate these risks, yet many professionals still overlook key covers that could protect their reputation and business continuity.
We support accountancy professionals by helping them arrange tailored insurance that reflects the realities of the work they do.
Why Even Experienced Accountants Can Face Claims
Accuracy is central to accounting, but pressure, deadlines, and human error remain part of the profession. Clients may rely heavily on your advice or documentation, and even a minor mistake could be financially or legally damaging.
A well-structured accountancy insurance policy can help manage the cost of resolving claims, whether that involves legal representation, settlement, or rectifying the issue at hand.
Real Scenarios That Led to Claims
Incorrect Corporation Tax Filing
An accountant submitted a client’s CT600 form using the wrong tax reference. As a result, HMRC did not match the payment and applied late penalties. The client sought compensation for both the fine and additional accountant time needed to resolve the error. This situation highlights the relevance of professional indemnity insurance.
Missed VAT Deadline
After moving a client to new accounting software, a freelance accountant failed to confirm the VAT return had gone through. The delay triggered interest charges and jeopardised the client’s cash flow. A claim was made for loss of earnings attributed to the oversight.
Data Breach via Phishing Email
A small accountancy practice clicked a phishing link disguised as a client query. Client payroll data was accessed, and the breach required ICO reporting. Cyber insurance helped cover the legal advice, notification costs, and system restoration.
These examples demonstrate how even routine work can expose professionals to complex claims. The right insurance cover could help contain the damage and reassure clients that you take risk seriously.
Key Covers to Consider
Professional Indemnity Insurance
This is widely regarded as essential. It could help with legal costs and compensation if a client alleges negligence or poor advice.
Cyber Insurance
Accountants deal with sensitive data. Cyber insurance could support recovery efforts following a breach, from notifying clients to legal defence and restoring IT systems.
Public Liability Insurance
If clients visit your premises or you meet them at theirs, public liability insurance could provide protection if someone is injured or property is damaged in the course of your business activity.
Employers’ Liability Insurance
If your firm employs staff, this is likely to be a legal requirement. It covers claims made by employees for work-related injury or illness.
What Accountancy Insurance Cannot Do
Insurance does not replace professional diligence or regulatory compliance. However, it can offer a financial and legal safety net if something goes wrong. Claims can happen even when you believe your process was sound. Clients may pursue compensation based on perception or financial loss alone.
We help accountants identify where their risks are and which types of cover may support them.