I'm just in the process of my application for a practising certificate with the IAB and about to start their programme of compliance, obviously before taking on the first client I need to sort out PII,
My question is how much cover should I have? the options on the quote screen are 50k, 100k, 250k, 500k, £100,000
I think in the beginning I'm going to be aiming for micro/small businesses or small Ltd's and I'm not expecting them to start flooding in, just a gradual build up over time, hopefully anyway.
So any advice on the amount of cover I should go for will be appreciated as i'm a bit clueless in this area.
I'm just in the process of my application for a practising certificate with the IAB and about to start their programme of compliance, obviously before taking on the first client I need to sort out PII,
My question is how much cover should I have? the options on the quote screen are 50k, 100k, 250k, 500k, £100,000
I think in the beginning I'm going to be aiming for micro/small businesses or small Ltd's and I'm not expecting them to start flooding in, just a gradual build up over time, hopefully anyway.
So any advice on the amount of cover I should go for will be appreciated as i'm a bit clueless in this area.
Hi Martin
Does the IAB not stipulate the amount of PII you need as a member in practice, I know the AAT and also CIOT used to.
The AAT was the greater of 2.5 times the annual gross fee income or £50,000 and CIOT was the greater of 2.5 times the gross fee income or £100,000 this was where a firms income was less than £400,000 if greater than this it was £1 million
My own business is covered for £100,000, might be worth checking with the IAB as they may also recommend a PII firm which offers a discount to members.
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Doug
These are only my opinions of how I see things and therefore should not be taken as advice
I was thinking the 100,000 too sounded about right, I've not seen anywhere on the IAB literature about any stipulations on the amount, Ill look again though, they do have some links to insurers with discounts so Ill get some quotes as well as the bkn pii scheme one in the link too.
Thanks again.
-- Edited by Martin S on Saturday 25th of May 2019 07:30:04 AM
Hi
Doug - the bands you mention- are they just for sole traders, as the prof bodies seem to differ if you are Ltd.
John - I was told by ages back that once I strayed into Accountancy territory that Arlington couldnt cover me under the BKN scheme. They can of course provide intros to other insurances as they are a broker after all.
Martin - You may want to keep your costs down in the first year? Are you realistically going to be doing enough turnover for the £100k cover to kick in? You can always increase it after year 1 if you are doing well.
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
Doug - the bands you mention- are they just for sole traders, as the prof bodies seem to differ if you are Ltd.
Hi Joanne
CIOT do not seem to differentiate between sole traders and Ltd and the bands I mentioned are for both however they do recommend that all their members should have cover for £1million, with the AAT they do say the greater of 2.5 times gross fess or £100,000 for a Ltd instead of £50,000 for a sole trader
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Doug
These are only my opinions of how I see things and therefore should not be taken as advice
Hi Joanne, it would be nice if I were turning over enough in year 1 for 100k, but in reality I wont will I, so youre right Ill go for the lower cover and if by some miracle I turnover a lot I suppose I can increase cover as and when.
-- Edited by Martin S on Monday 27th of May 2019 01:15:14 AM
