How much is professional indemnity insurance for accountants?
Reviewed by Matthew Bartlett, Director, Apex Insurance Brokers Limited · Last reviewed 2026-08-05
If you run an accountancy practice, "how much is PI insurance?" rarely has a single answer — and any figure quoted without knowing your firm should be treated with caution. Two practices with the same headline turnover can pay very different premiums because insurers price the risk behind the numbers, not the numbers alone.
This guide explains the real drivers that move an accountant's PI premium, the cover limits you will typically choose between, and how working with a broker helps you avoid over-paying or under-insuring.
What decides the price
Insurers build an accountancy PI premium from a set of risk factors. The most influential are:
- Fee income (turnover). This is usually the single biggest rating factor. Higher fee income generally means more clients, more engagements and greater potential exposure — so premiums rise broadly in line with it, though not always proportionally.
- The services you provide. Routine bookkeeping, payroll and compliance accounts sit at the lower-risk end. Tax advice, audit, corporate finance, insolvency work, financial forecasts and specialist consultancy carry more exposure and push the price up.
- The cover limit you choose. A higher limit of indemnity means the insurer could pay out more, so it costs more. The jump from £1m to £2m to £5m is a deliberate trade-off between premium and protection.
- Claims and circumstances history. Previous claims, or notified circumstances that could become claims, signal risk. A clean record helps; a recent or unresolved matter will be reflected in the price or the terms.
- Client base and sector risk. Acting for large corporates, listed companies, financial-services clients or high-net-worth individuals typically raises exposure compared with a book of small local businesses and sole traders.
- Systems, controls and experience. Documented processes, engagement letters, qualified staff and good file discipline all reassure an insurer and can support a keener price.
Because these interact, a small, cautious compliance-only practice and a firm of the same size doing heavy tax-planning work are simply not the same risk — and the premium reflects that.
Want a figure based on your actual practice, not a generic estimate? Tell us your fee income and services and we'll do the legwork.
Get a PI quote →Choosing a cover limit
The limit of indemnity is the maximum your insurer will pay for a covered claim. It is one of the few levers you directly control, so it deserves thought. If you are a member of a professional body such as the ICAEW, ACCA, CIMA or AAT, check its current minimum PI requirements — your limit must meet or exceed them.
| Cover limit | Often suits | Effect on premium |
|---|---|---|
| £1m | Smaller practices, sole traders, lower-value client work | Lowest of the three options |
| £2m | Growing firms or those with larger clients and more advisory work | Higher — broader protection |
| £5m | Firms with corporate clients, audit, tax planning or contractual limit requirements | Highest — largest exposure covered |
Limits can be arranged on an "each and every claim" or "aggregate" basis, which affects how the cover responds across a policy year. Your defence costs may sit inside or on top of the limit too — a detail worth confirming, because legal costs alone can be significant.
Beyond the headline premium
When you compare quotes, the annual premium is only part of the picture. Also weigh up:
- The excess. A higher excess (the amount you pay towards each claim) can reduce the premium, but means more out of pocket if you claim.
- Retroactive cover. PI is written on a "claims made" basis, so it needs to respond to past work as well as current. Gaps in retroactive date can leave earlier engagements uncovered.
- Policy exclusions and conditions. The cheapest quote can carry narrower cover or awkward conditions. What is excluded matters as much as the price.
- Run-off cover. If you retire, sell or close the practice, you may need run-off cover for claims arising after you stop trading — factor this into long-term cost.
This is why a lower number is not automatically the better deal. A well-structured policy that actually responds when a client alleges a loss is worth far more than a cheap one with a hole in it.
How a broker helps you get the right price
A specialist broker's job is to present your practice to insurers in its best and most accurate light, then find cover that fits. In practice that means:
- Helping you complete the proposal accurately, so risk factors are described fairly rather than defaulting to a cautious — and pricier — assumption.
- Approaching insurers who understand accountancy risk and want the business, rather than accepting a single quote.
- Setting the limit, excess and terms around your actual services, clients and professional-body requirements.
- Handling notifications and claims, and arranging run-off cover when the time comes.
The result is not simply "cheap" cover — it is cover priced correctly for your risk, with fewer nasty surprises at claim time. Start your quote here and we'll build it around your firm.
Common questions
Does my PI premium go up automatically as my practice grows?
Generally yes, because fee income is a primary rating factor and more work means more exposure. It won't always rise in exact proportion, and a strong claims record and good controls can soften the effect. Tell your broker about growth at renewal so cover keeps pace.
Is a £1m limit enough for a small accountancy firm?
It can be for a lower-risk, compliance-focused practice — but check your professional body's minimum requirement and consider the size of the losses a client could allege. Where you advise on tax or larger transactions, £2m or £5m is often more appropriate.
Why is my quote different from another accountant's?
Because insurers price your specific risk. Differences in fee income, the mix of services, client type, claims history, chosen limit and excess all move the premium — so two similar-looking firms can be quoted quite differently.
Apex Insurance Brokers Limited is authorised and regulated by the Financial Conduct Authority (FRN 724952). This guide is general information, not advice on a specific policy or a substitute for your policy wording.