About HKICPA Members Professional Indemnity Insurance

HKICPA Members PII is a Professional Indemnity Insurance Master Policy (Master Policy or PII) available to members of the Hong Kong Institute of Certified Public Accountants (HKICPA) since December 1996.

The Master Policy is administered and managed by Aon, the appointed broker. Aon is a leading global professional services firm providing a broad range of risk, retirement and health solutions. For more information about Aon, click here.

The Master Policy provides HKICPA members with easy access to cost-effective and comprehensive professional indemnity insurance (PII). It features a variety of plans tailor-made for members’ need. Over the years, PII has been proven to be an effective risk transfer tool to protect members against any legal liability arising from professional negligence, errors or omissions and to fund the associated legal costs.

Important Note for Corporate Practices

As per Rule 4 of the Corporate Practices (Professional Indemnity) Rules, Corporate Practices are required to maintain a valid PII under the Master Policy and any additional insurance as required in order to ensure compliance with the various requirements set out in Rule 5.

When arranging PII, Corporate Practices are specifically reminded to meet the minimum requirements according to the Rules.
 

Scope of Coverage

The Master Policy is a Claims-Made policy that is designed to protect HKICPA members against claims for financial losses due to a breach of professional duty. It indemnifies sums which the Insured is legally liable to pay as compensation for claims arising out of negligence, misrepresentation, error or omission in the performance of their insured professional services. Under Rule 5, Corporate Practices are required to insure all professional business undertaken by them. Accordingly, Corporate Practices should declare their professional business and respective revenue to the Insurer prior to incepting or renewing the PII.
 
Examples of professional services include auditing private and/or listed companies, tax advisory, company formations, investment advice, insolvency, receivership, liquidations, financial investigation and reports.
 
Members are required to disclose their Professional Services to the Insurer before incepting PII and advise the Insurer on any changes in the subsequent renewals.
 
For clarifications about the scope of cover, members may contact the Aon Team at hk.accountantspii@aon.com or 2862 4243.  
 

Legal Cost Cover

The Master Policy also provides cover for legal defence costs, which include costs and expenses incurred in defence or settlement of any claim/loss or potential claim/loss.
 
The Master Policy offers Legal Defence Cost In Addition to the policy limit, which is a unique feature that provides extra security and protection.
 
The Master Policy cover also extends to all reasonable costs, charges, expenses and/or legal representation costs (subject to a sub-limit as stated in the policy) incurred in connection with any actual or potential criminal, regulatory or disciplinary investigation, enquiry or proceedings.

Insured Party

The Insured includes the practice, former, present or future directors, and partners. The Master Policy’s cover is also extended to employees, self-employed persons, contract staff or any person acting on behalf of the Insured.

Claims-Made Policy

The Master Policy is on a Claims-Made basis, where the Insurer will cover the Insured for claims made against the Insured and reported to the Insurer during the Policy Period, or where applicable, the Extended Reporting Period. The Insured are reminded to report any claims or circumstances which may give rise to claims to Aon before the policy expires. Late reporting of claim(s) or circumstance(s) may jeopardise the Insured’s interest under the policy.

PII Policy Document

You will be provided the policy and a Certificate of Insurance in electronic form once the  insurance takes effect. We will also issue the necessary documents to support your registration as a Corporate Practice in compliance with the Rules.

Optional Cyber Extension

Malicious cyber activity has a significant adverse impact on all businesses. Aon offers an optional cyber insurance cover under the Master Policy. The cover provides both first party (losses incurred by the members) and third-party (members’ legal liability to third parties) losses.

First Party Losses

Third Party Losses

Notification and Response Handling

Privacy and Data Breach Liability

Regulatory Investigation and Reporting

Electronic Media Liability

Rectification and Increased Costs of Working

 

Extortion Threat Response

 

Reputation Protection

 

 

When purchased, the available cyber protection policy limit is in addition to the members’ PII policy limit, which ensures that there is no duplication of cover within the PII. Most importantly, PII will not indemnify any First Party Loss suffered in a cyber incident, though these losses are the primary drivers of demand for cyber insurance.
 

HKICPA Members Professional Indemnity Insurance Online Renewal

We are pleased to introduce you our online platform for renewing your HKICPA Members Professional Indemnity (PI) Insurance online launched in October 2020. You will receive our renewal notice with an unique link to access the online platform via email and simply spend 15 minutes (anytime in 24x7) to renew your PI insurance policy.
 
For more information about the ePlatform, click here.
 
We have held two briefing sessions for online renewal demonstration in late-Sept, please click below to download the playbacks. 

  1. Introduction to the Online Platform

  2. Before Start – What to prepare?

  3. Demonstration of Standard Risk Online Renewal

  4. Demonstration of Referral Risk Online Renewal

  5. Reminders and Introduction to the new PII Webpage

  6. Q&A Session (September 24, 2020)

  7. Q&A Session (September 25, 2020)

HKICPA Members Professional Indemnity Insurance FAQ

01. What is the difference between Cost Inclusive and Cost-In-Addition to the limit of the liability cover ?

02. Does the PII cover my professional services out of Hong Kong ?

03. Does the PII provide cover for any previous business that I may have operated ?

04. What is a retroactive date and inception date ?

05. Will my work that was performed before the PII policy inception date be covered ?

06. What is the insured amount that I should purchase ?

07. Why are the legal expenses limited to HK$500,000 under the policy ? Can I increase the limit ?

08. If I have a claim or circumstance to report, what should I do ?

09. If I have a claim, do you assign a law firm to provide defence ?

10. Do I still need to maintain insurance coverage if I cease my practice ?

11. How can I pay the premium and when should I pay ?

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+852 2862 4243
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