Professional Indemnity Insurance
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 also pays the legal costs of defending an action.
WHY do bookkeepers need PI Insurance?
Bookkeepers who register as BAS Agents under the new Tax Agents Services Act 2009 must have P.I. insurance pursuant to the Code Of Professional Conduct contained within section 30-10 (13) of that Act. Please note that PI Insurance is compulsory from 1 July 2011, as per the media release from the Tax Practitioners Board on 25 Feb 2010.
Bookkeepers transitioning into the new legislation (those that do not yet have their academic qualifications), are also subject to the Code of Professional Conduct (and thereby the PI Insurance requirement) despite the fact that they may not yet have sought formal registration as a BAS Agent through the Tax Practitioners Board. If you are puzzled please read the FAQ from the Tax Practitioners Board which explains the requirement.
Bookeepers, even if you plan on being a BAS Agent, to safeguard your personal assets it is a process now of getting your PI Insurance so that if in the event of a client taking legal action you are covered. Even if you are in the right you can incur great costs and countless hours defending yourself. If in the unfortunate situation that your oversight has caused someone loss, the P.I. insurer steps in and defends the claim on your behalf. The P.I. insurer will meet the cost of loss suffered by the claimant and the legal costs incurred in the claim, subject to the terms and conditions of the policy.
Uniting Bookkeepers currently uses Phil Doran for Professional Indemnity Insurance and they also do Public Liability Insurance as well. They are brokers and we have found them to be very professional, well-priced and honest.
Check out the special they have for Bookkeepers
Phil Doran
GC Insurance Services Pty Ltd
PO Box 289, Southport BC, QLD 4215
Phone: 1300 935 758
Mobile: 0419 125 466
Fax: (07) 5539 0188
Email: phil@gcinsurance.com.au
We have some documentation to download and view: the decision is yours, yet a compulsory one.