Commercial Insurance
The cover BAS agents are required to hold — and the one they usually also need
The Tax Practitioners Board requires every registered BAS agent to hold professional indemnity insurance. Most bookkeeping practices carry public liability alongside it, because the two answer different risks.
Professional indemnity — the required cover
The TPB mandates PI insurance for all registered BAS agents. It exists for consumer protection: it compensates clients who suffer financial loss because of the services you provided. The requirement applies to BAS agents, and it's worth holding whether or not it applies to you — accountants, tax advisers and bookkeepers all act directly on a client's financial position.
What counts as a breach of professional duty
Negligence, errors, failures, omissions or mistakes. In practice that means incorrect financial advice, errors in journal entries or financial statements, failing to deliver services you promised, work performed negligently, or documentation lodged late.
Where a client suffers a loss from any of these, PI cover meets the compensation and the legal costs of defending and establishing liability.
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Public liability — the everyday one
PI answers claims about your work. Public liability answers what happens to people and property on your premises, whether or not it has anything to do with the service you provide.
Incidents like these aren't connected to the services you sell. They can involve anyone on your premises — the public, business associates, clients, subcontractors.
Choosing your limits
The TPB sets a floor, not a target. Its minimum professional indemnity cover scales with your annual turnover excluding GST:
We arrange professional indemnity from $1 million to $20 million — the entry level is the TPB minimum for a practice turning over more than $500,000 — and four levels of public liability from $5 million to $30 million. Which level fits depends on your client base, the size of the accounts you touch, and any limits written into your client contracts.
Monthly payment options are available.
From our clients
“Our dealings with KeyInsure have always been very friendly and helpful, also very quick response and professional advice. Pretty sure they save us money on our insurances also. Thank you.”
KeylendWho needs this cover
If you prepare accounts, lodge statements or handle other people’s financial information, an error can cost a client money and become a claim against you.
- Registered BAS agents and tax agents
- Bookkeepers working from home or on client sites
- Payroll and accounts administrators working as contractors
- Accounting practices of any size
- Virtual CFOs and financial consultants
- Bookkeeping franchisees
What affects your premium
Bookkeeper and accountant PI is priced on the services you provide and the fees you earn.
Your profession and services
Advice with larger financial consequences attracts higher premiums than lower-risk services.
Fee income
Premiums are usually based on annual fees or turnover, so growth changes the price.
Limit of cover
A higher limit costs more. Contracts and site requirements often set the minimum you need.
Excess
Choosing a higher excess usually lowers the premium; a lower excess raises it.
Claims history
Past claims — yours and, in some cases, the industry’s — affect what insurers offer.
Retroactive date
How far back the policy covers past work. A longer retroactive period generally costs more.
Common questions
Does the Tax Practitioners Board require PI insurance?
Yes. Registered tax and BAS agents must maintain professional indemnity insurance that meets the TPB’s requirements. We arrange policies designed to satisfy them.
Does PI cover mistakes in a client’s BAS lodgement?
Errors and omissions in the services you provide are what PI is designed for, subject to the policy terms. Deliberate acts and fraud are excluded.
Do I need public liability as well?
PI covers your professional work. Public liability covers injury or property damage at your premises or a client’s. If you meet clients in person, most bookkeepers hold both.
What about cyber cover for a bookkeeping practice?
Bookkeepers hold bank details, payroll data and tax file numbers, which makes them a target. Cyber cover is worth considering alongside PI.
Related cover
Ready when you are
General advice only. Consider the relevant PDS & TMD before acquiring any product.