It is difficult because the insurance is not just covering your fees but also what the potential claim might be from a client.
So you may have a client who you charge fees of say £10,000 but their claim against you may be £10,000 plus any consequential loss including the cost of putting the work right and any result of them having acted upon your advice and suffering a loss.
I went straight for £250,000 as I felt that would be adequate - on an average year (and this financial year is well below average) that is ten times earnings.
When I came to renew yesterday I did consider coming down to £100,000. The danger in dropping is that if you pick up a decent job or two and forget to increase your cover you might find yourself under insured.
And insurers wont pay to the limit in such circumstances, they will not pay at all.
Of course the big hope is that you never have to claim.
Geoff Smith accountsLEGAL www.accountslegal.co.uk
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