Insurance - PI cover proves hard to get
Insurance companies are taking an inconsistent approach to providing accountants with professional indemnity insurance cover for the millennium bug, the English ICA warned this week.
Peter Burton, deputy director of the English ICA’s professional standards office, said some insurers were providing Y2K cover which will run until the end of 2001, but others were refusing to provide any cover at all.
‘Insurance companies have a bit of a schizophrenic attitude to the year 2000,’ he said. Burton added that, although many bug problems may not be detected until near the end of 2001, insurers could refuse to provide PI for this crucial period.
The warning will heighten concern among accountants who find even modest Y2K PI insurance hard to come by.
A partner at a Gloucester-based chartered accountant, who asked to remain anonymous, was dissatisfied with his firm’s PI, which is capped at #100,000.
‘Our PI cover is very restrictive and we’re looking elsewhere,’ the partner said. The firm’s broker had told him that 95% of accountants get no year-2000 cover at all.
A spokesman for the Association of British Insurers said insurers were negotiating Y2K PI individually with accountancy firms via questionnaire.
In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...
View resourceIn recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...
View resourceIn a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...
View resourceThe first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...
View resourceFollowing a profitability review, Deloitte has decided to scale back its UK deals business due to lower returns. This strategic shift could lead to jo...
View articleUK-based Dow Schofield Watts (DSW), a mid-market professional services network, announced the creation of a new division called DSW Principal Partners...
View articleEY has been undergoing significant cost-cutting measures and streamlining its operations since the abandonment of Project Everest. The firm has made t...
View articleTransitioning from an accounting firm to a consultancy model is only one part of the puzzle. The next, equally vital piece is making the market aware ...
View articleThis framework, while providing a top-line view, underscores the importance of strategic vision, operational excellence, and the spirit of continuous ...
View articleLooking ahead, the Big 4 firms face a challenging year, with ongoing cost-of-living concerns, slow economic growth, rising geopolitical tensions, and ...
View articleLast month it was reported that Deloitte would be cutting approximately 1,200 jobs in the United States, making it the latest of the Big Four accounti...
View articleAfter years of deliberations and millions of dollars spent, EY has officially pulled the plug on its greatly anticipated break-up plan Read More...
View article