Professional Indemnity Insurance Requirements by the Institute of Certified Public Accountants of Cyprus (ICPAC / ΣΕΛΚ).

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According to the Members’ Rulebook aricle 7 (2) specifically says:

Professional indemnity insurance

(a) Every audit firm is required to take measures and to make such arrangements in order to ensure that it is in a position to meet the requirements for damages against it emanating from negligence in the carrying out of the accounting and auditing work.

(b) The measures or the arrangements referred to in sub-paragraph (a) may be achieved by professional indemnity insurance the minimum limit of which shall be €85.000 or the equivalent amount of 10% of the annual professional fees, whichever is the higher, for every claim Provided that the Council may revise the minimum limits at its discretion.

However as per, 25th of November 2015 the minimum limit of coverage has risen to €200.00. Specifically, it states:

The Council of the Association in the last meeting, had taken into consideration all the current issues and also the fact that the amount of insurance coverage other professional groups are much higher but also the fact that many years have elapsed from the initial determination of the above amount as insurance, it decided to increase the threshold of professional indemnity insurance to the members of the Association and firms that hold a practicing certificate from € 85.000 to € 200.000 by the year 2016.

Note that the corresponding amount is already the lowest occupational insurance limit coverage of Insolvency Practitioners, as provided by law.

Therefore, with the present circular amended paragraph 7 (2) (b)

Regulation 1.201 “practicing certificate” by replacing the amount of € 85.000 in the amount of € 200.000.                

The new rules will apply to issue new or renewal of existing practice certificates by the year 2016. 000

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