Getting an effective and affordable CIPFA insurance quote

July 30, 2009 · Filed Under CIPFA Insurance Quote · Comment 

While it’s fair to say that arranging professional insurance is not always necessarily quite as fast and straightforward as arranging something like a car cover quote, it need not be problematic or expensive. Certain types of professions have to abide by industry rules and regulations, and the Chartered Institute of Public Finance and Accountancy requires that members have got professional indemnity insurance. A CIPFA insurance quote can be obtained from a wide number of specialist insurance providers who can make life easier when it comes to this specialist kind of cover.

Indemnity insurance is seen as important not just by accountants, but by a wide number of professional advisory services. If something goes wrong and a client loses money because of a consultant’s mistake, they may be minded to take legal action. Worse still, an external adviser like an accountant may be blamed for a problem, and wrongly face a claim for compensation. Even these unfounded accusations will have to be formally defended if they are filed through the court process.

Indemnity insurance will pay for the cost of defending a legal action which is launched against an accountancy individual or company. In short it pays for solicitor’s fees and will even cover the cost of any compensation which might be awarded in favour of an applicant. Indemnity insurance is also seen by certain clients as essential, as some types of firm or local authority may not be prepared to deal with an adviser like an accountant unless they have their own indemnity insurance in place.

Indemnity insurance will normally pay out if the legal case launched against the policyholder relates to an accusation they have made a mistake, error, omission or act of negligence in their business. Other circumstances which are nearly always covered as part of a deal include allegations that someone has breached confidentiality or copyright, or that they have perhaps lost an important client’s data or documents.

All policies have cover limit, which is essentially a top amount past which an insurance company will not pay out any further for legal protection or compensation. Bodies like the CIPFA have their own requirements about what the minimum level should be, although some firms may want a higher level of protection than the minimum which is laid down by industry rules.

A CIPFA insurance quote will be related to the policy limit and to the firm or accountant in question, as all insurance in this sector is based on calculating risk, just as cover in the car insurance industry is, for example.

Cover professionals like brokers can be one of the best ways of getting a CIPFA insurance quote, as they may have access to deals and details which do not normally come up from general public enquiries. They can also advise an applicant on the potential need and cost of additional options like public liability insurance and employers liability cover.

CIPFA insurance requirements and professional indemnity cover

July 29, 2009 · Filed Under CIPFA Insurance · Comment 

Professionals working in the field of accountancy have to abide with a number rules and regulations, not least those laid down by industry bodies. The CIPFA or Chartered Institute of Public Finance and Accountancy has its own requirements which include that practising members have professional indemnity insurance in place. CIPFA insurance requirements are similar to those laid down by other accountants’ organisations.

The market for professional indemnity insurance is quite broad and the product should not be confused with other types of professional cover such as public liability insurance, although this can be included with some indemnity plans. Employer’s liability insurance should also not be confused with this brand of cover, although this can often be bought from the same firms which supply indemnity protection.

In short professional indemnity insurance will pay the policyholder’s legal costs in the event they are sued. As far as accountants are concerned this can happen if a client feels that the advice they have received has been ineffective or worse still has cost them money. Legal cases can also be launched if a client feels they have actually been the victim of a mistake made by an accountant or accountancy firm.

Subject to certain limits laid down in each policy, CIPFA insurance cover will pay the cost of someone’s legal defence and also pick up the bill for any compensation which might be awarded against the policyholder if they lose a case.

Provided they were honest, IE not malicious, all professional mistakes committed by an accountant or accountancy firm will often be covered, and the wording also often includes omissions, acts of negligence, and infringement of intellectual property rights or of confidentiality. Protection is also often provided for the likes of allegations that a policy holder has somehow defamed someone through libel.

Should an accountant or accountancy firm lose important documents or data belonging to a client, they will also be covered against any legal action. CIPFA insurance requirements are not only designed to make life easier for an accountancy professional in the event they face legal action, but also to potentially make doing business in easier. Many potential clients may not consider a company which does not have the relevant Indemnity Insurance in place.

Using a CIMA indemnity professional like a broker to get the right deal

July 27, 2009 · Filed Under CIMA indemnity professional · Comment 

Getting hold of the right kind of insurance can be daunting, particularly if it is essential for your profession. Private doctors, architects, and accountants often have to have certain kinds insurance in place in order to practice, and management accountants need indemnity cover in order to qualify for CIMA membership. Of course fulfilling the rules is not the only priority, as indemnity cover can help to safeguard a business in the long run. Getting a deal can be made all the more straightforward by using a CIMA indemnity professional, like a broker who knows how this kind of Insurance works and how to ensure somebody is set up with a deal which not only fulfils the requirements but is cost effective.

Indemnity Insurance is of course straightforward and pays out in the event that somebody faces a legal challenge. It will pay the cost of hiring a solicitor to defend a case and will even pay the cost of any compensation if it is awarded against the policyholder.

Ordinarily it will protect against being sued and specifically against claims that the policyholder has made a mistake, error, or even an act of negligence in the conduct of their business. Insurance like this can be bought to protect one person or a firm with several partners.

A CIMA indemnity professional like a broker can quickly gather basic information from the policyholder and then obtain a number of quotes from different insurers providers. This can save someone time and money as brokers may have access to deals that somebody ringing around a number of firms themselves may not. They also have specialist knowledge and may be able to advise somebody on some of the elements and extras that come with professional indemnity cover.

For example, some deals come with public liability insurance, while others do not. Other deals include retroactive cover, which will provide protection for legal claims which arrive in future but which date back to something before the insurance was even bought. Sometimes it is also possible to arrange what is known as runoff cover, which ensures that somebody is protected for a set time frame after they have stopped trading.

A CIMA indemnity professional can therefore be a shortcut to a policy which meets the rules of the association but which also does not have to be something which makes a big dent in a firm’s profits. It’s often possible to get a deal which has a top limit which is relevant to a firm, as maximum policy payout amounts do not have to be in the millions of pounds.

What getting a CIMA insurance quote involves

July 26, 2009 · Filed Under CIMA Insurance Quote · Comment 

Protection against worst-case scenarios is sensible for any business operation but, for certain professionals it is essential. Some firms need cover in place in order to gain entry into professional organisations, and for management accountants this is true in the case of the CIMA or Chartered Institute of Management Accountants. A CIMA insurance quote for a policy which fits the bill is easy to get from a number of insurance firms who can provide cover quickly and easily.

Members of the organisation are required to have professional indemnity insurance. This is essentially a form of cover which pays out someone’s legal fees and even any compensation which they have to pay in the event they face legal action, IE they are sued.

This kind of cover is seen as important not just by accountants but by a whole range of professionals who provide their advice on an expert basis. Outside consultants including accounts are expected to provide a high standard of service and occasionally to deliver advice which aids a business or even turns round its fortunes. Should their performance or advice fall below what a client expects, the client can take legal action.

Legal disputes may be more likely if the client in question has actually lost money as a result of following what a consultant has said or because of what a consultant has done. They may launch a legal action alleging the mistake and demanding compensation. Depending on how complicated the legal is, it may drag on for many months or even years and progress through the legal system.

Indemnity insurance would pay for the policyholder’s legal defence and for any compensation which might be awarded against them if they lose the case. Indemnity cover is seen as important by many accounts and other professionals because it will pay out whether or not the claim against the policyholder is valid. Sometimes claims may be completely malicious and unfounded, but they will still have to be defended and this again means running up a legal bill which will have to be paid.

A CIMA insurance quote can be given for a policy which is tailored to a professional’s needs and which meets the associations minimum requirements. Often a basic policy like this will cover the holder in the event they are accused of making a mistake, error, omission, or even an act of negligence in their day to day business.

Getting a CIMA insurance quote involves simply contacting a provider who may ask about what level of protection for legal fees your business needs and may also enquire about how contracts are agreed with clients and what type of work a business does specifically before supplying a price.

CIMA Insurance requirements and what they refer to

July 25, 2009 · Filed Under CIMA Insurance · Comment 

Members of professional organisations often have to fulfil certain requirements, and accounting bodies fall into this category. CIMA insurance rules say members of the organisation must have professional indemnity insurance in place. This is because an increasing awareness of someone’s personal options when they feel they have been wronged means there is greater focus on taking legal action in the event of a dispute.

Of course many professionals including many accountants will get through most of their working lives and careers without having to defend a legal claim. However, there is a notable chance that being sued, while it is unwelcome and can often be avoided, can be a real risk.

Furthermore, certain businesses and clients may actually insist that a professional has a form of indemnity cover in place before they are willing to conduct business with them. Examples might include local authorities, and bigger corporate clients.

CIMA insurance requirements were brought in because the challenges of a legal claim can be damaging no matter who is on the receiving end. A long and drawn out process can mean hiring legal help and even having to stump up the compensation bill if it is awarded against the professional in question.

Of course, some professionals will be able to pay for perhaps one or two legal cases of a limited nature. But claims have to be defended whether or not they are valid and even if they are untrue can run up significant legal expenses if they get far enough through the system. In the worst cases this can actually threaten the financial future of a company.

Indemnity insurance pays not only for the cost of a legal defence, but also the cost of any compensation awarded against the policyholder. In broad terms it protects the company should it be accused of making a mistake, error, omission, or act of negligence in day to day business.

CIMA insurance with indemnity also typically pays out if somebody is accused of damaging or losing important documents belonging to a client, or is said to have breached someone’s confidentiality or copyright. Policies even protect someone if they are accused of defaming somebody, perhaps through libel, for example.

Getting Effective cover to meet AAT professional indemnity rules

July 24, 2009 · Filed Under AAT Professional Indemnity Cover · Comment 

Members of the AAT have to have professional indemnity insurance in place as a mandatory requirement. For some professionals this might pose the question of where do I get it and how do I make sure it is affordable? Professional indemnity insurance comes in various different levels and can protect all sorts of circumstances. AAT professional indemnity can be professionally designed by the insurance company in question which can provide added peace of mind that the policy someone ends up with is suited to their needs.

AAT professional indemnity pays out in the event that the policyholder faces a legal claim that they have made a mistake in the conduct of their business. This might arise if a client feels that they have lost money because of the advice given to them by a professional.

A legal challenge will mean hiring legal help to defend a case, which can be time consuming and expensive. Professional indemnity will pay for someone’s legal bills, and even pay the cost of compensation should it be awarded against them, up to set limits.

The typical elements of an indemnity policy include protection if somebody is accused of breach of confidence or copyright, and protection if they are accused of making a mistake, omission, or even committing an act of negligence.

Indemnity insurance can be bought which covers a company and its various partners or employees, or which covers an individual. Broader policy elements will even protect the policyholder should the firm face a claim that an employee has acted dishonestly, and perhaps defrauded a client, for example.

Protection like this can also include other options, which may come as standard or need to be added on, perhaps for an extra fee. Some common additions include what is known as runoff cover, which is a period of extra protection which can be applied as a professional winds down a business, retires, or changes insurer. This can ensure that somebody is still protected in any vulnerable period where they are not trading but may still be liable for legal action.

There is also an element to this form of cover which is known as retroactive protection. This refers to an element which will provide cover for a legal claim which arrives in future but which actually dates back to an incident which occurred before the cover itself was actually bought. For this to be valid, a policyholder must not have had indication that a legal claim was imminent when they took out the cover.

AAT professional indemnity can be bought at a level which is appropriate to a business, and policies are typically tailored so they provide a level which is at least equal to the AAT requirements.

Getting an affordable AAT insurance quote

July 23, 2009 · Filed Under AAT Insurance Quote · Comment 

Insurance for professionals is now a fact of working life depending on someone’s specialist area. Accountants in general not only recognise that plans like indemnity cover can be a helpful tool or safety net for their business, but also have to have cover in place if they are to be accepted into organisations like the AAT. Getting an AAT insurance quote has therefore become standard practice for many accounting professionals.

The AAT rules relate to professional indemnity insurance, which is a type of cover geared towards legal costs, that is it will kick in and pay out in the event somebody faces a legal challenge, i.e. being sued. In normal circumstances it will pay out in the event that somebody faces legal action following an accusation they have made a mistake, omission, or committed an act of negligence in their work.

This is a kind of cover which is not only appropriate for accountants but which is also popular with all kinds of professional consultants and advisers. Other professions in which indemnity insurance is popular include architecture and private medicine.

To get an AAT insurance quote you simply have to contact the relevant provider, and there are many types of insurance company in the UK which provide this type of cover. They will ask a bit about your profession and qualifications, and will also perhaps enquire about how you agree work and contracts with clients. They will then provide a cost based on how much protection you want, as not every policy will pay out indefinitely towards legal bills.

Of course the higher the limit, the higher the premium might be, and it is worth bearing in mind that your total policy payout limit includes the cost of any compensation which might be awarded against you in the event you lose a legal case.

An AAT insurance quote can also be affected by a policy excess, which can be applied in just the same way as people who may volunteer to pay initial repair fees on a car insurance deal. The competitive nature of the market also means that although indemnity insurance is compulsory for AAT membership, it need not be overly expensive.

What AAT professional indemnity insurance rules mean

July 22, 2009 · Filed Under AAT Professional Indemnity Insurance · Comment 

Meeting set requirements are a fact of life for some professionals, and the AAT professional indemnity insurance rules mean certain types of cover are essential for accountants which want to be part of the association. To become a member an accountant must have a set level of professional indemnity insurance, known as PII in many circles, and getting a policy need not be time consuming or difficult.

Indemnity cover is taken out not just by accountants but by all sorts of qualified professionals who offer their advice. Management consultants, private doctors, and architects often have their own policies. AAT professional indemnity insurance rules mean that this kind of cover is generally seen as a requirement for accountants.

Unsurprisingly many professionals may not be that familiar with what indemnity insurance actually does. To summarise it will pay somebody’s legal costs and even any compensation awarded against them if they face legal action. The normal legal circumstances it covers include being sued by a client because they feel you have acted inappropriately and provided advice which has harmed them in some way. The normal definition of a policy like this is that it will result in a payout if you are formally accused of making a mistake, omission, or act of negligence in your general business.

Of course mistakes can be costly for clients which is why some may be minded to seek legal action. Indemnity insurance would pay for the cost of hiring a solicitor, subject to a successful claim on the cover, and will also pay any compensation which was awarded against you if the claimant is successful.

Every policy comes with its own limit, and the AAT has its own requirements about what should be set as a minimum to fulfil its rules and regulations. Most types of cover also pay out if somebody is accused of losing or damaging important documents which belong to a client, or if an employee of a policyholder is accused of acting dishonestly, perhaps facing a claim that they have defrauded a client.

Things like public liability insurance may also be included, and the typical policy may also protect somebody in the event they are accused of defaming someone through libel, or face an allegation that they have breached confidence or copyright.

AAT professional indemnity insurance rules need not be a headache as there are many specialist providers who will supply just this kind of protection to professionals. All someone has to do is provide a little bit of information about how much protection they want, and what kind of business they are and perhaps what type of clients they deal with. It is actually often possible to get a wide number of quotes and to pick an affordable policy which matches your requirements.

AAT insurance rules and what they mean for potential PPI policyholders

July 21, 2009 · Filed Under AAT Insurance · 69 Comments 

Some professions require certain kinds of insurance as a condition of membership to specialist associations or simply as a part of law. Accounting is one of these professions, and the AAT or Association of Accounting Technicians has clear rules on what a professional has to have in place. AAT insurance rules say someone must have a minimum level of professional indemnity insurance to be a member in practice.

Professional indemnity insurance is often shortened to PII and is a kind of insurance which pays someone’s legal bills and compensation costs if they face action. Accountants are not the only ones to take out this kind of insurance, the likes of architects and private doctors often have this protection as well.

However, in recent years many other types of expert have taken out professional indemnity insurance because of heightened general legal awareness which can see clients pursue legal action in the event they are unhappy or feel that they have lost money as a result of erroneous advice offered by a hired expert.

AAT Insurance rules are therefore nothing out of the ordinary and quite similar to conditions placed on other professions. Policies providing professional indemnity cover are normally worded to ensure that somebody is entitled to help with their legal costs in the event that they face action due to a real or perceived error, omission, or act of negligence made in connection with their general business.

Policies can protect individuals or firms in general, and always come with a set policy limit. This is because insurers will cover someone’s compensation and legal costs only up to a set point, although it is often possible to get a deal which has enough protection to provide generally adequate cover for your business. Some policies will protect somebody up to tens of millions of pounds, although not everyone will need this.

When taking out cover it may not always pay to simply go for the minimum required level, such as that imposed by AAT insurance rules. There are often some other things to consider which may be included as part of a deal, including the possible option of public liability cover, although some companies will include this with a deal automatically. Somebody may also want to look at run off cover, which protect somebody after they have retired for a while, or for a period in between insurers, and retroactive cover, which will protect somebody against claims which arrive in future but relate to something which happened in the past.

Getting the right limit on Management consultant professional indemnity cover

Knowing what the possible insurance requirements for a business are is one thing, but knowing where to get them and how they work is another. Good value is important no matter what kind of protection someone is putting in place, and professional cover is no different. Management consultant professional indemnity cover will pay out for someone’s legal fees and even cover the cost of compensation if they face being sued, and as such can be a keel tool for some businesses.

However, not all firms buy the same level of cover, and so few people pay the same price. Essentially this kind of protection will work to cover someone’s financial ability to pay for their legal defence and compensation costs if they face legal action. For example, if a management consultant was sued following an alleged mistake they made on an assignment for a client, they can claim on a policy and get cash towards their legal defence and any compensation which may be awarded against them.

Cover limits can stretch to millions of pounds, as this may be the total cost of a case in legal fees and compensation for a high profile action. Some cases can drag on for months or even years, which is why high cover limits are necessary for some companies. But not everybody will need a cover limit in the millions of pounds, and smaller firms who have a limited number of clients and who have a limited turnover may want a different level and therefore a different premium.

However, with management consultant professional indemnity cover, it is important not to end up under insured, or with a cover limit which runs out in the middle of a case meaning the policyholder has to pick up the rest of the cost themselves.

Of course the onus is on the applicant to decide what level of protection is right for them, and also any other extras which might be appropriate on the policy. For example, some firms include public liability insurance as part of the deal, or as an optional extra for an add on fee.

Indemnity insurance can also be tweaked to protect somebody against claims which arrive in the post in future but which date back to something so historical it happened before somebody even bought the insurance. This is known as retroactive cover and may be included with many deals.

Run off cover can also be arranged, which will make sure that a business or freelance individual is protected for a period after they winds down a business, change insurer, or retire.

Management consultant professional indemnity cover need not be a significant added expense, although it would involve a premium, and can run in the background of a business to provide a vital financial cushion if somebody ever does face the unwanted threat of legal action.

Next Page »