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Aipedia: Accountants
Usually yes: a civil liability PI policy generally responds to a negligence claim whether or not AI contributed to the error, subject to its terms. The ICAEW, ACCA and AAT PI rules say nothing about AI, so your own wording decides the detail.
Part of: AI in Accountants
In short
Accountants' PI is written on a civil liability basis and usually responds to claims for negligent work regardless of the tools used. ICAEW firms must buy cover on ICAEW's approved minimum wording with six years' retroactive cover, and ACCA and AAT have their own minimum requirements. None of these PI rules mentions AI, which means AI risk is usually "silent": neither expressly covered nor excluded. Watch for any technology, data or AI exclusion, notify AI-related circumstances promptly, and expect insurers to ask more about AI at renewal. Fines and data incidents usually sit elsewhere.
The ICAEW PII Regulations (effective 1 September 2024) require practising members and firms to hold cover with a participating insurer on ICAEW's approved minimum wording, with six years' retroactive cover (reg 1.10). The minimum is £2m per claim and in the aggregate (reg 3.2), or 2.5 times fee income with a £250,000 floor where gross fee income is under £800,000 (reg 3.3). The maximum aggregate excess is the higher of £3,000 or 3% of fee income (reg 3.7). ACCA and AAT set their own minimums, and AAT requires full civil liability, fully retroactive cover.
A civil liability wording usually covers claims arising from the conduct of the firm's professional business, so an error in accounts, advice or a forecast is generally treated the same whether a person or an AI tool produced the first draft, subject to the policy terms. The ICAEW approved minimum wording itself is not reviewed here, so check your own schedule and wording.
The PI rules of ICAEW, ACCA and AAT contain nothing AI-specific, and no insurer AI endorsement for ICAEW-compliant wordings has been published. AI is therefore usually "silent" in accountants' PI; see silent AI. Silent does not mean unlimited. Points to check include:
See AI exclusions and clauses and affirmative versus silent AI cover.
Illustrative scenario: a firm discovers that a staff member has been using a public generative AI chatbot to draft client advice, and that one letter contained an error the client has now acted on. The firm fixes the letter but does not tell its insurer. At renewal it answers "no" to a question about known circumstances. Months later the client claims. The insurer questions both the late notification and the renewal answer.
The lesson is that the AI element rarely decides cover on its own. Notification, disclosure and policy conditions usually matter more, and they are within the firm's control. The firm in Elden v HMRC was criticised by the Tribunal for AI-generated errors; a firm in a similar position would want to consider whether the criticism is a circumstance to notify.
Most PI policies require prompt notification of circumstances that may give rise to a claim. An AI error found before the client complains can be such a circumstance; see circumstance notification. At renewal, insurers may ask how AI is used, which tools are approved, whether client data goes into public tools and how output is reviewed. Answer accurately and keep the evidence: an AI policy, a tool register, training records and review logs. See the accountants PI renewal guide.
Apex arranges PI for accountants and reviews how your wording treats AI-assisted work. See the accountancy AI overview, the AI guidance explainer, and does PI cover AI mistakes across professions.
The ICAEW PII Regulations do not mention AI. They require cover on ICAEW's approved minimum wording with set minimum limits and six years' retroactive cover. Whether AI-related negligence is covered therefore depends on that wording and your policy terms.
It describes a policy that neither expressly covers nor excludes AI risk. For accountants' civil liability PI, this usually means AI-assisted negligence is treated like any other negligence claim, but exclusions and conditions still apply.
Yes, if asked, and it is sensible to tell your broker anyway. Accurate disclosure of the services you provide and how you deliver them reduces the risk of a dispute about cover after a claim.
Usually not. Fines and penalties are commonly excluded from PI or uninsurable. Some policies include cover for defence costs in disciplinary or regulatory proceedings, so check your wording.
Tell us about your firm and the work you do. A broker will review how your current PI treats AI-assisted work, or arrange new cover. No fee for a quote. Or call 0117 325 0027.
Start a PI quote Request a callbackApex Insurance Brokers Limited is authorised and regulated by the Financial Conduct Authority. Registered in England and Wales, company number 07014570. This page is general information about how AI is used in the profession and how insurance may respond. It is not legal, regulatory or insurance advice on your circumstances, and it does not guarantee that cover will be available or on what terms.
