You are not legally required to hold professional indemnity but a number of professional associations won’t let you join their ranks without it. Here’s a list of organisations that require you to hold professional indemnity cover:
- The Chartered Institute of Taxation (CIOT)
- Association of Taxation Technicians (ATT)
- Institute of Chartered Accountants in England and Wales (ICAEW)
- Institute of Chartered Accountants in Scotland (ICAS)
- Association of Chartered Certified Accountants (ACCA)
- Chartered Institute of Management Accountants (CIMA)
- Institute of Certified Bookkeepers
- Architects Registration Board (ARB)
- Royal Institute of British Architects (RIBA)
Even if these groups are not relevant to your business, if you work as a professional consultant or have any dealings with local authorities, it is advisable to add professional indemnity to your insurance policy. Certain clients won’t hire you if you don’t have cover, so if you want to avoid missing out on work, it makes sense to have professional indemnity in place.
Some clients will also state the value of the cover required as a condition of business, which will give you some guidance on how much cover you might want to take out.