It doesn’t matter how experienced you are, if you provide professional advice or services it’s important to protect your business against possible claims made against you for malpractice or professional misconduct. Whether you are a sole trader bookkeeper or run a bookkeeping business, all bookkeepers in Australia who are registered as BAS agents are legally required to maintain Professional Indemnity (PI) insurance under the Tax Agent Services Act 2009 (TASA).
We work with some of Australia’s leading insurers so you can get multiple quotes in minutes, online or over the phone, without the hassle of filling out lengthy paperwork.
Polices are available to meet the requirements of the Tax Practitioners Board’s requirements, the coverage options available for Professional Indemnity are competitively priced. Get the right cover at the right place in a matter of minutes!
What is Professional Indemnity (PI) Insurance*?
Professional Indemnity insurance, often referred to as PI insurance, is an important form of protection for bookkeepers and BAS agents, being professionals who provide specialist services and give specialist advice. It is designed to respond to claims against your business for losses as a result of actual or alleged negligent acts or omissions in the provision of your professional service or advice. PI Insurance will also assist with the legal costs associated with responding to or managing claims which are covered by the policy.
Why do I need Professional Indemnity Insurance?
Not only is it a legal requirement to hold a minimum level of cover as a registered bookkeeper or BAS agent, you should consider the potential risks specific to you and your business. These can include, but are not limited to:
Even a tiny error could cause damage to a client causing potentially devastating repercussions on your business and could also affect your personal assets.
David**, a bookkeeper, was engaged on a contractual basis for bookkeeping services. During that time the firm that he was contracted to was tasked to install new accounting software which he did not have any background in. Unfortunately, he made some errors and omissions which had a financial impact on the contracting firm. The firm sought $25,950 in damages and it was deemed that David was in fact at error. Fortunately for David he held a Professional Indemnity policy and his insurer paid the claim in full.
**Name has been changed to protect privacy
It’s important that you consider your individual requirements set out by the Tax Practitioners Board which are based on the annual turnover of your business.
The Tax Practitioners Board provides its members with additional guidance about individual insurance requirements on its website: https://www.tpb.gov.au/
Failure to maintain an appropriate level of Professional Indemnity insurance could mean that you will not be meeting your ongoing registration requirements and may be in breach of the Code of Professional Conduct, which can result in termination of registration.
Although Professional Indemnity Insurance is the only type of insurance that is compulsory as a registered Bookkeeper or BAS Agent, you can consider other types of insurance policies to cover yourself from basic business risks.!
Whilst you may not need every policy listed below, these are the types of policies our insurance team can help you customise for your business.
Whether you work mainly from your office, or you frequently visit your clients at their premises, the last thing you want to have to think about is paying hefty legal costs should an unwanted accident occur.
Public Liability insurance is designed to provide protection for you and your business in the event a customer, supplier or a member of the public are injured or sustain property damage as a result of your negligent business activities.
No matter how careful you are there is always the risk that an unexpected event beyond your control may arise. A Business Insurance package policy can provide cover for your business assets including its premises, contents, stock and in the event of business interruptions.
Because there are various cover options available with a Business Insurance policy, it’s wise to think about which ones are relevant to your business. You can tailor a policy that suits your needs, which could potentially include: Building Insurance, Office Contents Insurance, and General Property Insurance to protect against loss or damage to portable and valuable property like mobiles or laptops.
You can also include cover your business for the loss of income and some of the increased costs of running your business as a result of interruption caused by events covered under your policy with Business Interruption Insurance.
Did you know that you can insure most important asset... You!
Accidents can happen when you least expect them. Wouldn’t it be reassuring to know that your insurance policy had your back, so to speak?
Personal Accident and Illness insurance can provide levels of cover for loss of income if you are unable to work, or suffer permanent disablement and even death as a result of an unexpected injury or illness (even if it occurs outside of your employment)
Do you have a website for your bookkeeping business? Does your laptop or computer store sensitive customer information or data? If the answer to any of these questions is yes, consider the financial impact on your business if someone was able to hack into your digital data.
Cyber liability insurance is a type of business insurance product which protects your business against both the legal costs and expenses (including compensation payments) related to cybercrime incidents. Your coverage may generally include cover for expenses and legal costs relating to the following:
| *As with any insurance, cover is subject to the terms, conditions and exclusions contained in your policy document. The information contained on this webpage is general only and should not be relied upon as advice. |