Broker-arranged
Insurance for accountants
Insurance for accountants, tax agents and BAS agents: professional indemnity that meets your registration and professional body rules, cyber for the client data you hold, and management liability for your firm. A licensed broker arranges it.
- Tax agent and BAS agent PI rules explained
- One short form, then a licensed broker takes it from there
What insurance do accountants need?
Professional indemnity is the core cover, and for registered tax and BAS agents it’s a registration requirement. The Tax Practitioners Board sets minimum cover by turnover, and members of an accounting professional standards scheme must hold insurance or assets up to the scheme’s liability cap.
Tax Practitioners Board minimum PI
If you charge a fee for tax agent or BAS services, your PI must meet these minimums:
| Turnover | Minimum aggregate cover, including defence costs |
|---|---|
| Up to $75,000 | $250,000 |
| $75,001 to $500,000 | $500,000 |
| Over $500,000 | $1 million |
You must show you meet the requirement when you register and at each renewal.
The covers accounting firms usually hold
| Cover | Why |
|---|---|
| Professional indemnity | Claims that your advice or work caused a client a loss. |
| Cyber insurance | A breach of client data, or invoice fraud. |
| Management liability | Claims against the firm and its directors. |
| Public liability | Clients visiting your office. |
Client data and the Notifiable Data Breaches scheme
The OAIC’s Notifiable Data Breaches scheme applies to tax file number recipients regardless of turnover, as well as to businesses with annual turnover over $3 million. Most accountants handle TFNs, so a breach can carry notification obligations.
How to get accountant insurance through us
Accountant insurance questions
Do accountants need professional indemnity insurance?
Registered tax and BAS agents must hold PI that meets Tax Practitioners Board requirements. Members of professional standards schemes need insurance or assets up to the scheme’s cap.
How much PI does a tax agent need?
The TPB minimum depends on turnover: $250,000 up to $75,000, $500,000 up to $500,000, and $1 million above that, including defence costs.
Does the Notifiable Data Breaches scheme apply to small accounting firms?
It applies to tax file number recipients regardless of turnover, so most accounting firms are covered.
Why are accountants arranged by a broker?
Cover is set by your regulator and professional body, so a licensed broker checks the wording meets those rules.
Do bookkeepers need the same cover?
Registered BAS agents have TPB requirements too. Bookkeepers who aren’t registered agents can compare online.
Does an employed accountant need their own professional indemnity insurance?
Not to meet the Tax Practitioners Board’s requirement. If you don’t charge a fee or receive a reward, because you’re an employee or a contractor working under someone else’s registration, you don’t need your own policy. You still have to tell the Board how you’re covered, including your employer or principal’s name and registration number.
How large can the excess be on a tax agent’s PI policy?
The Tax Practitioners Board says the excess should not exceed 4% of your turnover. Where 4% works out below $1,000, the excess can’t be more than $1,000. The Board also expects you to check you could actually pay the excess if a claim came in.
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More industries arranged by a broker
Sources
Accountants