Auditors professional indemnity insurance

Pursuant to the Federal Law No. 307-FZ “On Auditing” dd. December 30, 2008, it is mandatory for all auditors engaged in audit (independent audit of the financial statements of an audited entity to express an opinion on the reliability of such statements), associated services (review engagements, agreed audit procedures, compilation engagements) and other audit-related services, to maintain liability insurance coverage.

Auditors professional indemnity insurance protects against:

  1. claims made against an insured auditor arising from property damage to a third party caused by the auditor’s professional audit and other audit-related services
  2. breach of contract claims

This insurance provides You with reimbursement for the following costs and expenses:

  • compensatory damage, i.e. the expenses that the person whose right has been violated incurred or will have to incur in order to restore the violated right associated with the property loss or damage, including, but not limited to, the cost to restore lost or damaged documents
  • cost to re-deliver the professional services in which a mistake was made or amounts paid as fees for the professional services rendered by You (where a contract for audit services is cancelled)
  • fines and penalties imposed by public sector bodies or tax authorities
  • expenses to prevent or mitigate a loss that Your client is responsible for
  • cost of investigating a claim
  • defence costs incurred by You in dealing with claims made by the beneficiaries against You which must be supported by evidence of expenditure, including fees for lodging documents to court

If you have any questions about insurance, please contact us

Updated: 28.05.2019
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