How much does professional indemnity insurance cost for accountants in the UK?

Reviewed by Matthew Bartlett, Director · Last reviewed 8 July 2026

The cost of professional indemnity for an accountancy practice in the UK depends on the professional body the firm is regulated by, the size of the fee income, the mix of services, and the claims history. There is no fixed tariff. What there is, in most cases, is a regulator-set minimum limit expressed as a multiple of fee income, an insurer market that rates on income bands, and an underwriter who prices the specific submission. This page sets out what actually drives the number for accountants, what the professional bodies require, and how Apex Insurance Brokers approaches an accountants' PI submission.

What determines the premium

Fee income is the anchor. For most accountancy PI wordings the premium is expressed on a rate per pound of gross fee income, and the rate itself moves with the risk profile of the work. A firm doing straightforward compliance work (audit-exempt accounts, tax returns, payroll, bookkeeping) will attract a lower rate on income than a firm carrying material corporate finance, insolvency, tax planning, forensic, or expert-witness work. Audit itself is a heavier rating factor and firms with a Recognised Auditor registration will see that reflected.

Claims and circumstances history is read carefully. A single closed-nil circumstance is different from an open matter with a reserve, and underwriters will price on the substance. The number and seniority of staff, the ratio of qualified to unqualified fee-earners, engagement letter discipline, and the use of standard terms of business all feature. Firms doing significant tax planning work or acting for high-net-worth or non-domiciled clients will typically pay a higher rate than a compliance-heavy practice at the same income level.

Limit of indemnity is the next lever. The ICAEW formula is a floor: the required minimum is the greater of 2.5 times gross fee income or £100,000, up to a required limit of £1.5 million (higher for firms above the threshold). Many firms buy above that number, particularly where they act for larger commercial clients or hold contractual limit requirements from engagement letters. Retention (self-insured excess) is a lever the firm can pull to reduce premium in exchange for absorbing more risk on smaller claims.

The regulator's requirements

The professional bodies each set minimum PI requirements. ICAEW Bye-law 61 and the ICAEW Professional Indemnity Insurance Regulations require firms to hold cover of at least 2.5 times gross fee income up to a minimum limit set by the ICAEW, with a maximum aggregate uninsured excess. ACCA has its own PII requirements set out in the Global Practising Regulations, with a broadly similar structure and a minimum limit graded by fee income. AAT-licensed members in practice have their own scheme requirements. Firms regulated for insolvency or investment business under DPB rules will typically have additional cover requirements set by the licensing body.

Run-off cover is required for two years for ICAEW-regulated firms on cessation of practice, and for a similar period under ACCA rules. Cover must be on a claims-made basis, must include defence costs in most cases, and must be placed with an insurer that meets the professional body's criteria. Firms that have historically had claims, that specialise in higher-risk services, or that have grown or acquired book of business will typically need earlier engagement with the market.

How Apex approaches accountants' cover

Apex Insurance Brokers is authorised and regulated by the Financial Conduct Authority (firm reference number 724952) and places accountants' PI across the ICAEW, ACCA, AAT, and CIOT-regulated markets. We are a named-broker practice: Matt Bartlett or a named colleague reads every submission personally, drafts the presentation to reflect the actual work profile, and negotiates on the firm's behalf.

Our client retention rate across the book is approximately 95%. We work with firms from sole practitioners through to multi-partner practices, and we place primary and excess layers where the fee-income multiple or the engagement-letter requirements demand it. Our approach is to engage with the firm on the way the work has actually shifted year on year, so that the presentation reflects the current risk profile rather than last year's numbers with a rounding-up adjustment.

Ballpark ranges — with the health warning

Any range published on a web page is a starting point for conversation, not a quote. With that on the record: a sole practitioner doing compliance-only work with clean claims will typically see primary PI premiums starting in the low hundreds of pounds a year, moving into the low thousands for small practices with a mix of services. Mid-sized firms often pay a rate on fee income in the low single digits of a percent, but the number moves with claims history, work mix, and the limit purchased.

Firms carrying audit registration, tax planning, insolvency, or corporate finance exposure should expect the rating to reflect that. Firms with recent notified claims or complaints will see terms adjust accordingly. Firms with clean records and a lower-risk work profile should expect the market to compete for them. The specific figure comes out of the underwriter's assessment of the submission, not from a table.