One in three (36{0a6a65c996ed4169444354e707b897cdb00dbefc1d0429e8febb9bf11027ba53}) accountancy practices have made a professional indemnity insurance (PII) claim in the last four years according to a new survey.
The results underline the importance of working with a knowledgeable, experienced, independent broker to secure the best possible cover. In fact 50{0a6a65c996ed4169444354e707b897cdb00dbefc1d0429e8febb9bf11027ba53} of practices believe the experience of their broker is the single most important factor, after cost, when selecting their PII supplier.
The Accountancy Age, Professional Indemnity Insurance Survey, sponsored by Brunel Professional Risks, reports on the state of the PII market for accountancy practices in 2012. It shows that around three quarters of firms are confident that they understand the risks they face, with many avoiding high risk practice areas. Six out of ten (63{0a6a65c996ed4169444354e707b897cdb00dbefc1d0429e8febb9bf11027ba53}) firms will not advise on tax schemes and over half (51{0a6a65c996ed4169444354e707b897cdb00dbefc1d0429e8febb9bf11027ba53}) consider HR and employment law advice to be too risky to offer clients. Over 40{0a6a65c996ed4169444354e707b897cdb00dbefc1d0429e8febb9bf11027ba53} of practices outsource practice areas they consider high risk.
“Effective risk management is essential if firms are to avoid claims and secure the best possible terms from PII insurers,” said Russell Lane, Managing Director, Brunel Professional Risks. “That is why we offer all our clients a complete risk management service to identify and mitigate risks in their business.” Full details of Brunel’s risk management services are available here.
The incidence of PII claims is relatively low in the accountancy profession, with 64{0a6a65c996ed4169444354e707b897cdb00dbefc1d0429e8febb9bf11027ba53} of firms saying that have not made a claim in the last four years. Those that have, however, report a mixed experience of resolving their claim. Nearly half (49{0a6a65c996ed4169444354e707b897cdb00dbefc1d0429e8febb9bf11027ba53}) found the process easy or fairly easy, but the other 51{0a6a65c996ed4169444354e707b897cdb00dbefc1d0429e8febb9bf11027ba53} only found the process satisfactory, difficult or very difficult.
“At Brunel we recognise the importance of settling claims quickly and efficiently. We have a dedicated claims team that understand PII and works overtime to deliver the best possible result for our clients,” said Russell Lane. “With many accountancy firms apparently finding the claims process difficult, it’s another important reason why practices should only work with specialist brokers. We’re confident that all of Brunel’s clients are reporting that they find the claims process to be an easy one.”
“PII provides vital protection to accountancy firms. The good news from the survey is that nine out of ten accountancy practices say their PII cover gives them comfort.”
