Professional indemnity insurance is a compulsory requirement for members of the ICAEW, ICAS and ACCA, and many other accountants’ professional bodies insist you have it.
An accountants professional indemnity insurance policy would typically include
- Breach of confidentiality
- Legal costs, awards and settlements for any claim that relates to a civil liability arising in the conduct of your professional business and that was caused by unintentional defamation.
- Legal costs, awards and settlements for any civil claim arising in a breach of duty through a negligent act, error or omission in the course of your professional business where someone other than you or your employees has suffered death, injury, illness, disease, sickness, psychological injury, emotional distress or nervous shock
- The costs of replacing or restoring information documents that have been lost or damaged in the conduct of your professional business
- Compensation paid to you where court attendance is required of any director, partner, principal or employee in relation to a professional indemnity claim that is covered by this insurance
Accountants provide trustworthy information about financial records. This might involve them in financial reporting, taxation, auditing, forensic accounting, corporate finance, business recovery and insolvency, or accounting systems and processes. Generally, they play a strategic role by providing professional advice, aiming to maximise profitability on behalf of their client or employer.
The role of a chartered accountant can cover many aspects of finance work, including:
- continuous management of financial systems and budgets
- undertaking financial audits
- providing financial advice
- liaising with clients and providing financial information and advice
- performing tests to check financial information and systems advising clients on tax planning (within current legislation to enable them to minimise their tax liability) and tax issues associated with activities such as business acquisitions and mergers
- maintaining accounting records and preparing accounts and management information for small businesses (accountancy)
- advising clients on areas of business improvement, or dealing with insolvency