Accountants policy covers

Most accountants policy wordings follow a very similar format. Usually, the limit of indemnity will be ‘any one claim basis’ with legal defence costs payable in addition.

The excess will not normally apply to insurers’ costs and expenses. The excess is likely to be aggregated or capped at a certain level.

Predominantly, the cover will be on a civil liability basis, unless specifically excluded (which is unusual) the policy will include cover for negligence, liability for the dishonesty of staff, directors and partners, liability for lost documents, libel and slander, breach of warranty of authority, etc.

In respect of members of ACCA, there will be a difference in conditions clause – this is required to demonstrate that the policy offers at least the same cover as the minimum standard required.

The cover provided by the policy will operate for all the activities that would be expected of an Accountant, including personal appointments, such as directorships, as liquidator, as trustee, but only in respect of an Accountant’s usual services. It would be normal for cover to extend to the cost of representation at professional tribunals.