Professional indemnity for Accountants

Whether you are a new start-up or long-established established firm, we have a specialist knowledge of the professional indemnity market for all Accountants including Chartered, Certified and members of other regulatory bodies.

At Dolmen Insurance, we offer a range of services to help new and established firms obtain their mandatory cover quickly and at a competitive premium .

As one of the first professions to make professional indemnity insurance compulsory for regulated firms, the market has changed significantly since the early days. Today, it’s a large insurance market with many insurers battling for market share and offering accountants policies with subtle but important differences.

It’s important to have a broker who has an understanding of how the market works to be able to help you make an informed decision on which policy/insurer is best for your firm.

Graphic of Accountant at a desk

Our service can include;

Examples of claims against Accountants

There are many different scenarios where an accountancy firm can find themselves needing to claim on their professional indemnity insurance. Some are obvious but others are not, so here are a few real examples;

1

Background - A firm of independent accountants were the auditors to a import/export company. It transpirted the company had been providing false information for the purpose of fund raising from banks. Follow detection, the banks ultimately sued the auditors for failing to detect the fraud. Outcome - Claim settled in excess of €10m

Accountant working out tax
2

Background - An accountant failed to inform their client that their income had exceeded the VAT threshold and they should, therefore, register for VAT. When the amount had to be paid to revenue with penalties, the client sought compensation from their accountant Outcome - Claim settled €37,000

closed Business
3

Background - A client purchased a company which turned out to be a poor investment. Their accountant had missed key issues in the due diligence process which would have prevented the client from proceeding with the purchase. Outcome - Claim settled €200,000

How is the premium calculated?

The rating of an accountancy firm is not a simple process. Premiums are calculated based on many factors which will include:

• The claims history
• Categories of work undertaken
• The number of partners or directors to staff ratios
• Firm’s fee income

To assess the risk the underwriter will usually require a fully completed proposal form which they will consider in detail. They will also look at the firm’s website or they may even look deeper online into a firm’s or partner’s background

How it’s worked out

Does a good impression really matter?

Presentation of your firm is more important than you might think. You are essentially asking an underwriter to back your firm and they will be assessing the professionalism and quality of your firm and if the information is badly presented, it may influence their judgement and the premium they offer or they may even decline to quote. This is where a specialist Broker like Dolmen can be key to getting the best terms available, by reviewing your submission with you and not simply forwarding a poorly/incomplete submission to potential insurers.

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Any claims in last 5 years ?

Check out the Insurance Glossary for a full understanding of all the terms mentioned on the website.