Professional Indemnity (PI) insurance is a form of cover commonly taken out by practicing accountants. In fact, accountants are generally required to comply with specific professional standards and legislation that requires them to hold a minimum amount of PI cover to protect against claims of negligent acts, errors and omissions as a result of their work.
So, how much does PI insurance cost for an accountant? It all depends on a number of key factors, such as:
- Business turnover and size and the type of work.
- The amount of insurance cover required.
- The individuals being covered – are they qualified for the job they are performing, and do they have a previous history of claims?
- Individual claims history of the insured.
What is the average premium for Professional Indemnity insurance?
On average, accountants can expect to pay around $111 per month* for Professional Indemnity insurance.
How does revenue affect the premium?
The number of employees and the amount of revenue your business turns over can have an impact on the cost of your Professional Indemnity policy.
Generally, the higher the revenue your business generates, the higher your PI insurance premium will most likely be.
Does the size of my business affect the premium?
The size of your business may affect your premium. Accountants with no employees can pay an average of $83 per month* while those with three employees can pay an average of $142 per month* for their Professional Indemnity insurance. The more employees you have can demonstrate a higher volume of work. And with more people comes an increased risk of a claim occurring, meaning your premium is most likely to increase as your business grows in size.
Does the level of cover affect the premium?
The cost of PI cover for accountants does not increase too significantly as the level of cover increases.
The amount of cover you elect to take can be influenced by a number of things, such as the type of risks your business is exposed to, as well as any work contracts you take on and / or industry-based requirements.
It is important to note that the cost of Professional Indemnity insurance is not influenced by one factor alone, but a combination of the key factors mentioned above.
*Customer Average Monthly Payment Report is based on 1 July 2023 to 30 June 2024 and presented as a guide only. It may not reflect pricing for your particular business, as individual criteria will apply.