Professional Indemnity insurance cover
As required in our Public Practice Regulations Professional Indemnity Insurance (PII) cover is compulsory for members who have an IFA practising certificate and are engaged in public practice, regardless of the amount of practice income. It protects members against legal liability for damages payable to people who have suffered loss as a result of incorrect or inadequate advice.
PII requirements apply to all members and firms engaged in public practice. Directors, partners or director, partner, or LLP members in a firm engaged in public practice are responsible for their own work and that of their employees and subcontractors. These responsible individuals must protect their clients, their practice and themselves by having adequate PII cover. The regulations prescribe the terms of the cover for the PII insurance, IFA’s approach to monitoring and supervision in this area and requirements for insurance arrangements for cessation of a practice.
IFA members who are required to have a practising certificate but are providing accountancy services and those who are providing non-accountancy services, should consider whether they would like to take out PII or other types of insurance e.g. trustees and directors indemnity insurance, to protect them against possible legal claims.
Members are free to make their own arrangements with other insurers.