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.
It could be said that ATT professional indemnity insurance is every accountant’s best friend. Even if it were not compulsory it would still be essential as it protects you in case anything possible goes wrong while working with a client.
Being an accountant no matter whether you work in book-keeping, taxation or consultancy; your advice and work is extremely important to the people that you work for. What you do and say will really affect how the company is run and therefore you are partially responsible for how successful the business is. That is why professional indemnity insurance is mandatory for ATT members.
How Professional Indemnity Insurance Protects ATT Members
You may not think that anything could possibly go wrong when you are working for a client, but unfortunately it can! As uncommon as it may be, many accountants have still found themselves victim to a claim being made against them. Whether the mistake was their fault or not; the claim was still made and so they still had to prove whether or not they were innocent. Proving that can be expensive and for some it can really damage their finances and potentially put them out of business. That is why professional indemnity insurance is mandatory for ATT members. If anything goes wrong, your insurance will cover it.
So just what can go wrong? Well if you are working in consultancy for example, you would be responsible for telling the third party how to run their business. You could come up with a business plan that informs the company how to move ahead and earn more profits. If that business plan were to fail (which it could do as even the best laid plans can fail), then any financial losses that the company suffers would be blamed entirely on you. You would then be expected to pay back the losses and that could run into thousands and in extreme cases, millions of pounds!
If you work within the wages, salaries and national insurance sector and you lose documents and information regarding company employees then you could find yourself in serious trouble. Professional indemnity insurance will cover you in case of data/document loss.
Overall it is possible for a number of things to go wrong when you work for the ATT. That is why ATT professional indemnity insurance is compulsory. You cannot predict what will happen in business and as qualified as you may be, mistakes can still be made.
AAT professional indemnity insurance is compulsory for all members of the Association of Accounting Technicians. This insurance can help to protect you and your business for both your legal and contractual obligations.
Certainly, protecting your business against the unexpected can make sound sense. This insurance provides financial assistance in cases where a claim has been made against your business or an employee. This could be where your customer suffers some form of loss because of actions – or lack of actions – on the part of your business.
AAT professional indemnity insurance can provide protection where claims are sought against you for things as accidental breach of confidentiality; public liability; loss of data or documents; product liability; defamation; libel & slander; dishonesty; and, unintentional infringement of intellectual property rights. There are different levels of protection available that can provide the most basic of cover or more comprehensive – the choice is yours as to what you buy.
Keeping to the minimum any financial loss is the aim of this professional indemnity insurance so if you are considering this insurance, then you need to ensure that you buy it from someone who is experienced in this niche sector.
Using a specialist broker of AAT professional indemnity insurance is vital if you want to make sure that the policy covers all the bases. A mainstream indemnity insurance policy from a traditional insurer may not offer the complete coverage that you need.
A broker who specialises in insurance for the AAT sector should have unlimited expertise in finding the right insurance solution, so that they can provide a policy that best suits your needs.
When picking your insurance, do note that as with most insurance cover, generally you will be liable to pay an excess on your policy.
Knowing how much insurance is important as under insurance is something to be avoided. It can also sometimes depend on the sector that you are working within, too. For example, some clients will want your company to have a minimum amount of indemnity insurance before they will allow you to carry out work or provide service to them.
Product benefits and benefits of professional indemnity insurances will often differ among the various providers, so if you are shopping around for your cover, ensure that you do compare these on a like-for-like basis.
Having the knowledge that you have AAT professional indemnity insurance cover in place can help you focus on your business, rather than worrying about it.
If you’re a member of the Association of Accounting Technicians, then you will no doubt be aware that AAT professional indemnity insurance is compulsory. The insurance cover can protect you against both statutory and contractual obligations.
In fact, the Financial Services Authority says that professional indemnity insurance is a liability insurance that protects “businesses in the event that a third party claims to have suffered a loss as a result of professional negligence”. In short, this means that the AAT professional indemnity insurance can cover at least some any financial claims made against a company.
You may believe that professional indemnity insurance is an often expensive, unnecessary overhead, but with awards made by Courts rising sharply in recent years, it is worth seriously considering taking out some form of indemnity cover.
Deciding where to buy your AAT professional indemnity insurance does not need not be a time consuming, expensive experience. By purchasing your cover online with a specialist broker, you can get access to the right level of protection needed. A broker who specialises in protection within your trade area can often offer bespoke cover.
A specialist AAT professional indemnity insurance broker can help to find you the right protection. They will often be able to insurance that is moulded to meet your business needs so that you get the right cover.
When buying your policy, check out how much the excess you will be liable for should a claim be sought against you as well as any exclusions that could mean that your claim would be ineligible.
Do confirm the exact amount and level of coverage that you will be getting before you buy, to when it comes to making sure that the policy is right for you.
Professional indemnity insurance can help your business to overcome unexpected issues and keep to the minimum any financial in the event of a claim. It will also help protect your reputation too.
Think about it – would your business be able to carry if you were sued? One claim see your business fail financially. However, having the financial protection of this form of indemnity insurance in place could put a stop to this.
Having the peace of mind that you have AAT professional indemnity insurance cover on your side can help you focus on the most important thing – running your business.