The rise in the number of professional negligence claims against accountants, as for other professionals, is partly due to the recent growth of litigation funding options for potential claimants. Such claims are expected to increase yet further during a recessionary environment with administrators looking to clawback some value for distressed estates and assets.

Claims against professionals are most likely to be brought by the professional’s clients, however claims can also be brought by third parties in circumstances where a duty of care has been assumed by the professional to the third party.