Bookkeeper Professional Indemnity Insurance

If you're a registered BAS agent with the Tax Practitioners Board, yes. PI insurance is mandatory. Even if you only provide basic bookkeeping without BAS services, PI insurance is strongly recommended. One data entry error could cost a client significantly, and without cover, you may be personally liable for the resulting losses.

The policies are similar in structure, but bookkeepers typically have lower premiums because they don't provide the same level of advisory services as accountants. However, if you also provide BAS agent services, your policy should cover that work too. Based on your specific services, we can help source appropriate coverage.

The TPB sets minimum cover requirements for registered BAS agents, tiered by annual turnover. For bookkeepers who don't provide BAS services (and therefore don't require TPB registration), PI insurance isn't legally mandatory but many clients and contracts require it. Cover of $250,000 to $1 million in aggregate is common depending on the nature and volume of your work. Based on your practice profile, we can help source an appropriate level of cover.

Yes, payroll processing errors are typically covered under a PI policy. If you make a mistake that causes an employee to be underpaid (or overpaid and the business can't recover it), and the client claims against you, your PI policy is designed to respond. Single Touch Payroll reporting errors may also be covered, depending on your policy wording.

PI insurance is just as important for freelancers. Without a company structure, you may face greater personal exposure if a client makes a claim. Freelance bookkeeper policies are available and can be quite cost-effective for the protection they provide.