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Professional indemnity insurance for tax agents

Find comprehensive cover with our specialised accountancy team – supporting tax practitioners for over 15 years.

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Are you a CPA Australia member? Visit our insurance solution for CPA Australia members page.

Why do I need indemnity insurance as a tax agent?

The legal costs of defending a claim can add up quickly. Typically without professional indemnity insurance, you’ll need to self-fund them if a claim is made against you – on top of other claim-related expenses.

Importantly, registered tax practitioners must have professional indemnity cover that meets the requirements of the Tax Practitioners Board (TPB).

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What’s covered?

  • Up to $10 million professional indemnity cover

    The limit of liability is the maximum amount that can be provided under the insurance policy.

  • Breach of duty

    Cover for claims from alleged breaches of fiduciary duty in the performance of professional services.

  • Defamation

    Cover for claims for defamation, libel and slander committed in the performance of professional services.

  • Breach of privacy or confidentiality and intellectual property infringement

    Cover for claims alleging breaches of privacy law or confidentiality, and cover for breaches of intellectual property rights in relation to trade secrets and patents.

  • Lost or damaged documents

    $500,000 sub limit for claims arising from loss or damage to third party documents.

  • 7 years automatic run-off cover

    Applicable to IT consultants, management consultants, miscellaneous professions, multimedia consultants, recruitment consultants and travel agents (subject to policy wording terms and conditions).

  • Public liability (optional extension of up to $20 million)

    Help protect your business against third-party claims resulting from accidents or injuries that occur as a result of your business activities with public liability insurance.

What’s not covered by tax agents insurance?

Your policy wording contains the terms, conditions and exclusions of your policy in full. However, a PI insurance for tax agents policy arranged by Marsh typically cannot cover:

  • Bankruptcy
  • Disputes regarding fees
  • Known breaches and/or known circumstances
  • Intentional acts.

Cover options and pricing examples

When calculating insurance prices for Professional Indemnity (PI) coverage for tax agents, several factors are typically taken into consideration, such as cover liability limits, business annual turnover, geographic location and additional services provided.

 

Selected activities

Selected business annual turnover

Selected cover limit of liability

Cost starting from*

Accounts preparation and bookkeeping

$100,000

$1,000,000

$635 annually

Taxation / GST

$100,000

$1,000,000

$836 annually

Taxation / GST; Accounting software

$100,000

$2,000,000

$1,208 annually

 

* The price indicated is for policy premium only and is exclusive of GST, stamp duty, levies, service/broker fees, and credit card surcharge where such additional fees apply. Premium prices may start at this price and are subject to fluctuate depending on the level of risk/cover chosen when applying for cover as determined by the relevant insurer. 

We leverage our strong market relationships to help deliver competitive insurance policies. Choose from limits of liability (up to $10 million), activities and other business attributes. 

What insurance do I need as a tax agent?

Product and services

Public liability insurance

Protect your business against third-party accidents and costly legal fees. Let us arrange the right cover for your needs.

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Product and services

Management liability cover

Protect your business – and your team – against management and operational risks with management liability cover.

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Product and services

Business insurance

Looking for specialist expertise? Our brokers will tailor business cover for you – no matter your industry.

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Why Marsh?

Why should you choose Marsh to arrange your accountants insurance?

Association compliant

Need to arrange professional indemnity insurance before you can provide financial services?

We’ll arrange a policy that may meet the requirements set by your governing body or association.

Tailored solutions

Help protect your firm against: 

  • Inaccurate data entry or omissions 
  • Incorrect reporting 
  • Late filing of returns
  • Negligence in giving advice or providing services.

Industry knowledge

Our team has been supporting Australian accountants for more than 15 years.

We leverage our strong market relationships and source multiple quotes – to help deliver you competitive insurance policies.

Frequently asked questions

If a claim (and or a circumstance which may give rise to a claim) is made against you, you must notify your broker as soon as reasonably practicable.  The first step is typically the release of a claim form for completion.  It will also be necessary to provide a copy of any third-party correspondence and or demands received.  Other pertinent information, dependant on matter/allegations being made may also be required. For example, a copy of the Service Agreement / Contract held with the claimant.

We want you to get the best possible outcome, so we will advocate for you throughout the entire claims process. Claims can be stressful, but we strive to make the process straightforward.

Tax agents aren’t legally required to have insurance in Australia. However, it is often a compulsory requirement imposed by regulatory bodies – such as the Tax Practitioners Board.

Yes. Without the proper cover, your tax practice or freelance tax business is exposed to a plethora of risks. If a claim is made against you, you’ll need to self-fund the damages and expenses – including the legal costs of defending the claim. Professional indemnity insurance can help safeguard your business when you need it most.

Absolutely. Generally speaking, freelance tax agents face the same risk exposures as those in an accounting practice. However, where a tax agent in an accounting practice would require management liability insurance, a freelance tax agent would not.

A certificate of currency is proof that you hold a current insurance policy. Once you’ve paid for your tax agent insurance policy, we’ll email your certificate of currency to you immediately.

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Costly claims can be hard to recover from – even for a financial planner. Help protect yourself with cover arranged by Marsh.

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Looking for specialist expertise? Our brokers will tailor business cover for you – no matter your industry. 
  

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Cyber attacks are becoming increasingly common. Help protect your small business with cyber insurance solutions arranged by Marsh.

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LCPA 24/332

Marsh Advantage Insurance Pty Ltd (ABN 31 081 358 303, AFSL 238369) (“Marsh”) arranges the general insurance (i.e. not the Discretionary Trust Arrangement) and is not the insurer. This page contains general information and does not take into account your individual objectives, financial situation or needs. For full details of the terms, conditions and limitations of the covers, refer to the specific policy wordings and/or Product Disclosure Statements available from Marsh on request. Marsh makes no representation or warranty concerning the application of policy wordings or the financial condition or solvency of insurers or re-insurers. Marsh makes no assurances regarding the availability, cost, or terms of insurance coverage. Any statements concerning actuarial, tax, accounting, or legal matters are based solely on our experience as insurance brokers and risk consultants and are not to be relied upon as actuarial, accounting, tax, or legal advice, for which you should consult your own professional advisors. The Discretionary Trust Arrangement is issued by the Trustee, JLT Group Services Pty Ltd (ABN 26 004 485 214, AFSL 417964) (“JGS”). Any advice or dealing in relation to the Discretionary Trust Arrangement is provided by JLT Risk Solutions Pty Ltd (ABN 69 009 098 864, AFSL 226 827) (“JLT”). JGS and JLT are businesses of Marsh McLennan. The cover provided by the Discretionary Trust Arrangement is subject to the Trustee’s discretion and/or the relevant policy terms, conditions and exclusions.

*For full details, please refer to the Tax Practitioners Board article: Professional indemnity insurance. It is your responsibility to assess whether a professional indemnity insurance policy is adequate for your business and risks in accordance with the Tax Practitioners Board’s requirements. Information correct as at 14 March 2023.