Under the new professional indemnity insurance (PII) rules, effective from 1 September, smaller ICAEW member firms with less than £800,000 in fee income will see their minimum limit rise to £250,000, or equal to two and a half times their gross fee income, more than double the current £100,000.

Member firms with fee income over £800,000 will be required to have a £2 million limit for any single claim depending on their size.

The definition of the largest firms has been changed to firms with gross fee income over £50m, rather than 50 or more principals. They will not be required to have qualifying insurance, but will need to have ‘appropriate arrangements’ in place to ensure they are able to meet claims arising from being in public practice. Previously larger firms were defined as having .

IC