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 4242.
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 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 Renewal Onboarding Session (Online Renewal Demonstration)
To give us a chance to get closer to you and deliver our message in more direct way, we have hosted two virtual briefing sessions on 13 and 16 October, 2023. In the briefing sessions, we have walked through the general information of the HKICPA PII, key message of the upcoming renewal and our Online Renewal Platform with HKICPA members.
If you have missed the sessions or you would like to revisit the session, please click below to download the playbacks and presentation materials.
HKICPA Members Professional Indemnity Insurance 2023 Mid-year Briefing
If you have missed the briefing session held on 31 May 2023 or you would like to revisit the session, please click below to download the playbacks and presentation materials.
