Professional Indemnity

Professional Indemnity insurance is compulsory for members of the Institute of Chartered Accountants in England and Wales (ICAEW), the Institute of Chartered Accountants of Scotland (ICAS) and the Association of Chartered Certified Accountants (ACCA). Cover must comply with minimum terms and, for Chartered Accountants, must be placed with an approved insurer.

MUM underwrites on behalf of Great Lakes Insurance SE, Zurich Insurance PLC, which are both on the ICAEW and ICAS lists of participating insurers, and we offer cover that complies with their rules, as well as those of the ACCA. MUM also offers cover to accountants and similar firms whose principals are not members of the Institutes. We specialise in providing professional indemnity insurance for small to medium-sized practices.

• A client purchased a company on the basis of accounts that had been approved by the insured. The client then alleged that the accounts did not show the true financial position of the company. Amount paid: £4,000,000

• The insured failed to identify serious embezzlement while acting as auditors for a client. Amount paid: £4,000,000

• The insured advised a client regarding the transfer of funds to members of the family. The client became liable for capital gains tax. Amount paid: £1,510,000

• The insured provided advice to clients regarding their exposure to capital gains tax following the sale of the client’s business. The advice is alleged to have been negligent. Amount paid: £600,000

• The insured failed to meet the requirements of the Companies Acts when dealing with the issue of shares. Amount paid: £525,000.