PI Costs for Accountants Remain Static

A major professional indemnity insurance provider in the UK has been reporting that despite the recent increase in insolvencies.

Marsh have reported that 4,491 liquidations (compulsory) and voluntary liquidations occured in England and Wales in the first three months of the year.  These liquidations have increased by over 50% over 2008.

Liquidations are a risk to accountants as previous creditors, clients or other parties can litigate against the firms accountant in order to recoup losses. 

Despite the increase in liquidations, premiums have remained largely unaffected.

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