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Start-up PII · Accountants

PI insurance for start-up accountancy firms — ICAEW, ACCA, AAT and independents

Reviewed by Matthew Bartlett, Director, Apex Insurance Brokers Limited · Published 14 July 2026

Opening a new accountancy firm requires PI cover in place from day one. The specific requirement depends on the professional body: ICAEW Bye-law 61, ACCA Rule 8, AAT scheme, or self-imposed cover for non-body-regulated firms. This page covers the mechanics.

The ICAEW requirement

ICAEW Bye-law 61 requires ICAEW-regulated firms to hold PII of at least 2.5 times gross fee income, subject to a £100,000 minimum and a £5m maximum per claim. The 2.5x formula scales the cover with the firm's revenue.

ICAEW firms doing DPB-regulated investment business under the Designated Professional Body regime must also meet the DPB rulebook PII standards, which mirror the FCA MIPRU 3 requirement for FCA-authorised firms.

The ACCA requirement

ACCA Rule 8 requires ACCA-regulated firms to hold PII, with minimum limits set by ACCA guidance. Cover must be in place from firm registration.

The AAT scheme

AAT-licensed members offering services to the public have an AAT-mandated PII scheme with minimum cover levels. Cover is arranged through the AAT scheme broker.

Non-body-regulated accountancy firms

Non-ICAEW, non-ACCA, non-AAT firms doing accountancy work do not have a professional-body PII requirement. The firm still faces professional negligence liability under the general law and PII is strongly advised. Absent a body requirement, sizing is a commercial decision.

First-year sizing

  1. Fee income estimate for year 1 — drives the ICAEW 2.5x formula and the base premium.
  2. Practice mix — audit, tax, corporate finance, R&D tax credits, tax-scheme advice.
  3. DPB-regulated activity — yes/no, and if yes what type of investment business.
  4. Personal claims history of the founding accountant(s).
  5. Cover limit choice — 2.5x formula floor for ICAEW, or commercial choice for non-body firms.

Run-off from the previous employer

A departing accountant from an existing firm continues to enjoy PII cover under the old firm's policy for prior acts, provided the old firm maintains PII. ICAEW requires two years of run-off cover after firm cessation.

Confirm: (1) prior acts at the old firm captured under the old firm's policy; (2) old firm will maintain run-off for the required period; (3) DPB-regulated activity has continued cover through the transition if relevant.

Frequently asked

What is the ICAEW PII requirement for a start-up?
PII of at least 2.5 times gross fee income, subject to a £100,000 minimum and a £5m maximum per claim. Cover must be in place at firm authorisation.
Does the ACCA have a different PII requirement?
ACCA Rule 8 requires PII with minimum limits set by ACCA guidance. The requirement is not identical to ICAEW but is similar in spirit. ACCA firms should check the current ACCA PII guidance.
Do I need PII if I am not a member of a professional body?
There is no legal requirement to hold PII for accountancy work in the UK if you are not regulated by ICAEW, ACCA or another body. However you face professional negligence liability under the general law, and clients often require PII as a contractual condition.
What is DPB and how does it affect PII?
DPB is the Designated Professional Body regime under which certain professional bodies (including ICAEW) supervise their members for FCA-regulated activity such as investment business referral. DPB-regulated activity has its own PII rules that mirror the FCA MIPRU 3 standard for insurance brokers — broadly, PII adequate to the size and type of regulated business.
How much PII do I need for a start-up accountancy firm doing tax work only?
For ICAEW: at least 2.5x gross fee income, minimum £100k, maximum £5m per claim. Practical minimum for a small tax-only sole practice is often the ICAEW £100k floor; larger practices scale to the 2.5x formula.
Do I need run-off from my old accountancy firm?
ICAEW requires two years of run-off cover from firm cessation. The departing accountant is covered for prior acts under the old firm's policy provided the old firm maintains that cover. Confirm at departure.
Can I get PII if I am setting up a firm doing R&D tax credit claims?
Yes, but the underwriting question is specific. R&D tax credit work has attracted regulator scrutiny and some insurers restrict cover for this activity or apply specific exclusions. Discuss with a specialist broker.
How much does start-up accountancy PII cost?
Highly variable. Sole practitioner tax-only can be low three figures to low four figures. Small firm with corporate finance or audit work materially more. R&D tax credit work is a specific higher-friction niche. Apex quotes what the market returns.

Related reading

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How these figures are produced

This guide is built from Apex's own market data: the premiums insurers have actually quoted and charged on professional indemnity risks we have handled. Each night that data is aggregated into anonymised rate bands by profession, fee income and limit of indemnity. No client information is published — a band only appears where it contains at least five separate records, and unusually high premiums are excluded so a single atypical risk cannot distort the guide.

The range shown spans the typical spread of recent market outcomes for similar risks. Individual quotes can fall outside it in either direction. Figures exclude insurance premium tax at 12%.

This calculator is not a quote and is not an offer of insurance or advice. Your actual premium depends on full underwriting of your business, including your activities, claims record and insurer appetite at the time.

Apex Insurance Brokers Ltd is authorised and regulated by the Financial Conduct Authority (FRN 724952).

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