ACCA Members professional indemnity insurance
Members of ACCA are required to have Professional Indemnity Insurance with the following limit of indemnity:-
Fee income less/equal to £200,000 – the greater of two and a half times the firm’s total income for past financial year and 25 times largest fee paid in past financial year, subject to a minimum of £50,000.
Fee income £200,000-£700,000 – the greater of the aggregate of £300,000 and the firm’s total income for past financial year and 25 times largest fee paid in past financial year.
Fee income over £700,000 – the greater of £1,000,000 and 25 times the largest fee paid in past financial year.
The maximum excess allowed is calculated as the lesser of 2% of the limit of indemnity in respect of each and every claim or £20,000 per principal.
The policy cover should be on a ‘civil liability’ wording and the limit should be on an “any one claims basis”.
Fidelity guarantee cover must be included under the policy for partners, directors and employees. The cover must be provided by ‘reputable’ (DTI approved) insurers.
Run-off cover following cessation of practice must be maintained for a minimum of 6 years.