Do you have a client who is a chartered accountant?

If so, they are required to have professional indemnity insurance by their regulatory body and may be affected by the changes outlined below.

Institute of Chartered Accountants in England and Wales (ICAEW) Minimum Terms

Regulation changes and updates to minimum wording effective 1st January 2008

The minimum PI requirements in respect of firms governed by The Institute of Chartered Accountants in England and Wales will be increasing to the following:

1. For firms with a gross fee income greater than or equal to £600,000 a minimum limit of indemnity of £1.5 million for any one claim will be required.

2. If the firm's gross fee income is less than £600,000, the minimum limit of indemnity for any one claim must be equal to two and a half times its gross fee income subject to a minimum limit of £100,000.

NB - The Institute of Chartered Accountants of Scotland (ICAS) and the Institute of Chartered Accountants (ICAI) in Ireland have not yet agreed to these changes but are considering them. Therefore limits for ICAS and ICAI will remain at their current levels for the time being:

1. For firm's with a gross fee income greater than or equal to £400,000 a minimum limit of indemnity of £1 million for any one claim will be required.

2. If the firm's gross fee income is less than £400,000, the minimum limit of indemnity for any one claim must be equal to two and a half times its gross fee income subject to:

a. a minimum of £50,000 for a sole practitioner or

b. £100,000 for any other firm.

If you have any queries on the above please contact the Professional Risks team on
01382 593729 or via e-mail at GIPRISK@norwich-union.co.uk

Do you have any other clients who already have PI insurance or might need to purchase the cover?

If so, did you know that Norwich Union is one of the leading professional indemnity insurers in the UK?

Why not check out our product pages for further information and how to get a quotation.

Published: 19/11/2007