Accountancy regulatory bodies such as the Institute of Chartered Accountants in England and Wales (ICAEW) and the Association of Chartered Certified Accountants (ACCA) require their members to hold professional indemnity insurance at a certain level. For policies taken out or renewed from September 2024, the ICAEW expects members to have a minimum of £2 million of cover.
Professional Liability vs General Liability
Many accountants confuse these two. They are completely different products:
| Feature | Professional Liability | General Liability |
|---|---|---|
| Covers financial errors | ✅ Yes | ❌ No |
| Covers negligent advice | ✅ Yes | ❌ No |
| Covers slip and fall in office | ❌ No | ✅ Yes |
| Covers property damage | ❌ No | ✅ Yes |
| US avg monthly cost | $42-$130 | $22-$31 |
| UK avg monthly cost | £6-£15 | £5-£10 |
You need both. Most insurers offer a bundle that is cheaper than buying separately. This also applies if you run business premises. Our grocery store insurance guide and art gallery insurance breakdown show how business owners combine multiple coverage types to save money.