Professional Indemnity (PI) Insurance
Introduction
Professional Indemnity (PI) insurance indemnifies the professional bookkeeper from losses suffered by third parties due to negligence, error, failure or mistake on the bookkeeper’s part.
PI cover provides funds to make good the loss suffered by a third party and to pay the costs of defending an action to ascertain liability.
The Tax Agent Services Act commenced on 1 March 2010. Under the new laws, BAS Agents must have PI insurance to a level as specified by the Tax Practitioners Board. While the level of cover is yet to be specified, the Board have announced that BAS Agents will need PI Insurance from 1 July 2011.
ABN has worked quickly with its insurance experts to enhance its PI offering to meet the extra requirements of would-be BAS Agents and the additional liabilities they will be exposed to.
ABN’s newly worded policy covers your general bookkeeping activities including work with off-the-shelf accounting software and training. Importantly, it covers BAS services that are legally rendered by BAS Agents once the Tax Agent Services Act takes effect.
About ABN’s Insurance Offering
ABN is teamed with the following insurance professionals and has sourced the best cover for our members since 2003:
- Broker - Nationwide Insurance Brokers Pty Ltd
- Underwriter - Resource Underwriting Pacific Pty Ltd;
Nationwide Insurance Brokers, headed by Tony Charman, have been with ABN since our inception in 2001. We chose and continue to choose this broker because of the personalised service they are able to deliver to our members and the work they have put in to shaping this policy with our underwriter.
Resource Underwriting Pacific, through Jo Lindsay-Eschbank, have been our underwriter for some years now. We continue to use this underwriter because of their knowledge and experience in the P.I. market, not only in the broader accounting discipline, but also in the specifics of bookkeeping.
The Process for Obtaining PI Insurance
Arranging PI cover through ABN is straight-forward process but, importantly, it is also a personable process that involves a “hands on” approach from our insurance brokers.
Step 1 - Peruse the general information contained on this page of our web site and contact Tony Nationwide Insurance Brokers (details of which appear later on this page) if you have any questions.
Step 2 - Complete the Professional Indemnity Proposal Form which requests some general information about your business. There is no obligation to proceed with anything at this point; it simply gives our broker the opportunity to make an informed judgement about your insurance needs and then provide you with information about appropriate coverage, pricing etc. Email or fax the Proposal Form to Nationwide using the addressing details provided on the form.
Step 3 - Nationwide Insurance Brokers Will Contact You. A representative from Nationwide will be in touch and at that time can answer any questions you may have.
Step 4 - If you wish to proceed, Nationwide Insurance Brokers will raise a Tax Invoice and you will be covered after you make payment. Nationwide will send you a Tax Invoice at the anniversary date and you can opt to continue cover by paying that invoice.
Further Information
The following links will assist you in developing a greater understanding about P.I. Insurance generally, the ABN policy specifically, and the role played by the various parties in the insurance process.
Questions
When making a discerning decision about the choice of PI insurer, first and foremost you should start with finding a policy that gives you the comprehensive cover you need and consider pricing second. None of us want to pay more than we absolutely have to, but there is absolutely no point in compromising on your cover for the sake of saving a few dollars. Ann Landers is famously credited with the following time honoured adage which very much applies to the process of seeking good insurance coverage: “Too many people today know the price of everything and the value of nothing”.
If you have more detailed questions about specific inclusions/exclusions and other terms and conditions of the ABN policy, please deal directly with the team at Nationwide Insurance Brokers. It is always a good idea to deal with these requests via email (at least in the first instance) to avoid any confusion.
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