ACCA Syllabus 2026

The policy provides cover which meets ICAEW’s approved minimum wording and includes at least six years’ retroactive cover (ie,

Can You Do Both ACA and ACCA?

We're sometimes asked about this by customers who've been working on high-value contracts that have come to an end. The thing about reducing your level of cover is that it changes your policy retrospectively too. You should always think about your previous work and consider whether your insurance is still enough to pick up any claims that could arise from it. Most claims come from jobs and contracts you’ve already completed and they’ll be subject to the level of cover you have now, not what you had when the work was done. We can’t give a recommended level of professional indemnity insurance in this blog.

7.3 ATT discipline and run-off

As you’ve seen, it depends on your individual circumstances. We know how confusing getting the right PI insurance can be, though. We’re here to answer any questions you have and guide you towards the cover that’s right for you. Just give us a call on 0345 222 5391 and we'll be happy to help. In the meantime, remember that budgeting for insurance (at whatever level of cover) is always going to be easier – and cheaper – than budgeting for a disaster. cover for claims arising in relation to advice, services and business activities carried out during the last six years).

Study Towards Your Qualification with Learnsignal

Your insurers will likely look to apply a retroactive date to the policy for the new firm, which will confirm that no work completed prior to the date in question will be covered. What processes will you need to put in place to review and pick up on any potential problems from past work completed by bet uk betting sites casino the purchased firm? If there is an error in past work that is not picked up, and is then replicated in the future, you may find that any claims are split between your insurers and the run-off insurers. Regardless of whether you are the purchaser or the seller, what is important for both parties is for responsibilities to be appropriately understood and agreed upon. Both parties should agree on the date from which responsibility transfers to the purchaser, particularly if completion of work straddles the completion date.

Applicable law and jurisdiction

It is sensible to build this into the sale agreement – we are often notified of new claims during the first year of run off, brought to light when a fresh pair of eyes reviews past work. In one case, a client picked up on a template error for payroll calculations which spanned several years, including incorrect holiday pay and pension calculations. This resulted in six claim notifications being made under the run-off policy. In the case of another client, the sole trader had passed away suddenly, resulting in a claimant actively trying to pursue a claim against the insured’s family. As you can imagine, this added immensely to the family’s distress. Please also remember to check that the policy complies with ICAEW's updated requirements that took effect in September 2024. All participating insurers have agreed to provide cover under terms that match those of ICAEW's approved minimum wording.

Annual Fee Income Band (GBP)	Minimum Limit per Claim	Minimum Aggregate Limit	Excess/Deductible Guideline
Up to 100,000	100,000	1,500,000	1% of income or 2,500
100,001 - 500,000	500,000	3,000,000	1.5% of income
500,001 - 2,000,000	1,000,000	5,000,000	0.75% of income
Over 2,000,000	2,000,000	10,000,000	Negotiated, based on risk

Many insurers use their own policy wording and, in some instances, this will include extensions of cover beyond the cover that is required under the minimum wording.

Changes ahead for ACCA member firms

These insurers have agreed to meet the requirements of ICAEW's minimum approved policy wording. The fact that an insurer is on the list does not imply that ICAEW has performed independent checks on the insurer's suitability. ICAEW recommends that you investigate the current ratings and discuss with your brokers the suitability of these insurers when you take out or renew your insurance. When obtaining PII or renewing existing cover, you should ensure you arrange qualifying insurance and check the following: The insurer is on the list of the current list of participating insurers (and if the insurance is provided by more than one insurer, that all insurers are participating). The cover meets the minimum limits of indemnity set out in ICAEW’s PII Regulations. Participating insurers which use a different policy wording must also include a difference in conditions (DIC) clause in the policy and, as an extra safeguard, in the absence of an express DIC clause, it will be deemed to apply.

• Coverage must extend to all employees and subcontractors
• Exclusions for fraud or dishonesty are typically permissible
• Defence costs are usually included within the limit of indemnity
• Insurer must have a claims handling office in the UK

In the event of a dispute between a policy holder and their insurer, the difference in conditions clause should

Required levels of professional indemnity insurance

This exists to protect firms once they cease to trade, by covering their past liabilities in the event of any claims. ACCA requires members to maintain run-off cover for six years once they cease to trade. When it comes to a purchase or sale, how exactly your cover responds will depend on whether you’re the purchaser or the seller. In each case, below are some areas that should be considered, and how best they should be approached. If you are selling your practice, be sure to consider the following: Will you be responsible for maintaining the run-off cover once the sale goes through?

16.1 The minimum-premium floor

If so, ensure you discuss this with your insurers, and do not carry out any work after the run-off date agreed upon. ACCA requirements are for run-off to be maintained for six years. If you’re not responsible for maintaining run-off, is the purchasing firm going to be responsible for covering your run-off under their policy moving forwards? If so, you will likely need to provide them with your last completed proposal form and claims history. But consider the potential pitfalls of this approach. ensure that ICAEW's minimum wording overrides any provision in the insurer's wording that is less favourable to the insured.

PII Regulations

For instance, how will you ensure that the purchasing firm continues to maintain cover for the appropriate period – either to avoid you becoming exposed in the event of a claim, or falling in breach of the ACCA regulations? How will you pay for the run-off cover? Historically, some providers have offered block run-off policies; however, this is no longer available. As a result, budgeting for the premiums can become more complicated. Premium finance options are also often unavailable to firms who have ceased to trade, so you should ensure you have means to pay for the cover for the six-year period.

Office Break In and Equipment Loss

If you are the purchasing firm, factor in the following as part of your considerations: Will you be responsible for covering the past liabilities of the firm you are buying once the purchase goes through? If so, this is likely to impact on your premium and the rating approach that your underwriters take. For example, if the firm you are purchasing has a poor claims history, this will impact upon your policy as a whole. Similarly, if you take on the past exposures under your policy and a large claim subsequently arises from work completed by the firm you purchased, this claim will impact your risk profile moving forwards. If you are not responsible for the past exposures but are planning to use the existing trading name of the firm you are purchasing for any period of time, you should ensure this is included within your own policy moving forwards. All ICAEW compliant policies should include a DIC clause and there is provision in ICAEW’s contract with each insurer for firms to enforce this requirement.

• Minimum indemnity limit typically £50,000 for members in practice
• Cover must be provided by an insurer authorized in the UK
• Policy must cover civil liability from professional business activities
• Run-off cover required upon retirement or cessation of practice

If you require further information about this, please call +44 (0)1908 248 250 or use our Live Chat service.

Exclusion Type	What is Not Covered	Risk Management Consideration
Fraud & Dishonesty	Deliberate acts of fraud by the insured.	Implement strong internal controls.
Known Claims/Circumstances	Claims arising from issues known before policy inception.	Full disclosure to insurer at renewal.
Contractual Liability	Liability assumed under an unfair contract.	Review client engagement letters.
Cyber & Data Breach	Pure data loss or system damage; may need separate cover.	Consider standalone cyber policy.

ICAEW recommends you take necessary steps to ensure there is no gap in insurance cover which would be a breach of the PII Regulations.

3. ICAEW Professional Indemnity Insurance Regulations

In this case, run-off insurers managed all communications with the claimant to relieve the family of further upset and conclude the claim. Each party should also ensure that the other relevant parties have access to historic files. This ensures that, should a claim arise, they will be able to validate the advice given or provide copy documents or communications. For further information, please visit Lockton’s Accountants page, or contact Catherine Davis, ACCA relationship manager: catherine.davis@lockton.com Chloe Sweet, vice president, on chloe.sweet@lockton.com Lockton is ACCA’s recommended broker for professional indemnity insurance. The regulations relating to audit, insolvency, probate, investment business and the eligibility requirements for a practising certificate (PC) all require members and firms to comply with ICAEW's PII Regulations.

Finding a Professional Indemnity Insurer

The PII Regulations give details of the amount of insurance required, insurers and the policy wording insurers must use. Qualifying insurance is underwritten in terms of the minimum wording, which is approved by ICAEW. Policies must use this wording bet sports betting offers new customers or contain a difference in conditions endorsement. ICAEW PII minimum approved policy wording – effective from 1 September 2021 Schedule of amendments to the PII minimum approved policy wording (1 September 2021) Non-members can download an order form to obtain historic copies of ICAEW's minimum approved policy wording. You must obtain the insurance required by the PII regulations from a participating insurer. Firms have a legal obligation to make a fair presentation of the risk on taking out or renewing cover.

What professional indemnity insurance covers

And that's why we advise you to buy the highest level of cover you can afford. Top tips to ensure you aren’t caught out There are lots of aspects to consider when you’re thinking about buying or selling a practice. As a result, Professional Indemnity Insurance (PII) can often end up as one of the last things on your list – but that doesn’t mean it’s not important. Below, we’ve provided some guidance to help bet deposit bonus sites you understand the potential impact of any purchase or sale on your PII. We’ve also listed some steps that you can take to ensure a smooth transaction.

Entire agreement

First of all, it’s important to understand the basis of the cover itself. Unlike many insurance covers, PII is underwritten on a claims-made basis. Simply put, that means in order to have recourse to insurers, you must have a live PII policy in force at the time a claim is made. It is irrelevant whether you held a live policy at the time you completed the work in question. For this reason, firms are required to take out ‘run-off’ cover.