Management briefing: Professional Indemnity

Editorial by Paul Grant

No matter how confident you are of your professional competence, it is essential that you prepare for all eventualities. In fact, as a chartered accountant it is a requirement to take out professional indemnity insurance.

While this may be something you don’t want to spend a great deal of time on, not paying it the appropriate attention could result in some unfortunate consequences.

Premium prices are coming down as a result of more competition in the market. But while lower costs and greater choice is no doubt a positive thing, it has laid a few traps that the unaware could easily walk into.

Would a cheaper insurance policy give you the level of cover you require? If they are a new entrant, will they still be here in five years time? When it comes to making a claim, will they give you the service you expect?

This briefing will bring you the latest information on the professional indemnity market and how to play it to maximum effect. It will explore what you should be looking for from an insurance provider, what to expect when you are faced with a claim and what tricks you can use to reduce costs.

We also look into our crystal ball to examine at the trends that could impact the insurance market for accountants in the future, including incoming regulations, areas of potential threat from claims and the emergence of ethical insurance as a consideration.

While reviewing your insurance policy might be some way down your list of priorities, you don’t want to take the decision too lightly. If you don’t take some time to mull over the options, it could end up giving you a good few sleepless nights in the future.

Click on the headlines below to read the Professional Indemnity management briefing chapter by chapter... 

Overview: attention to detail

Handling a claim: the best defence

Regulation: ready to take risks

Threats: watch your step

Insurance alternatives: let's get ethical

Lower your risk profile: bargain hunt

Advice: ten tips