Overview
This guidance is for ICAEW members, sole practitioners and firms planning to move overseas while continuing to provide UK public practice services.
If you are considering moving overseas but wish to engage in public practice in the UK (for example by providing services to UK clients) then you will need to comply with the PII Regulations and obtain compliant professional indemnity insurance (PII).
Some firms have recently experienced difficulties obtaining compliant PII after relocating overseas. The rise in remote working and increased interest in international moves means more members may encounter similar challenges in the future. You should consider how moving abroad may affect your PII arrangements and discuss this with your broker/insurer at an early stage.
Why can it be difficult to obtain ICAEW-compliant PII when relocating abroad?
PII is regulated on a territorial basis. Insurers and brokers must be licensed in the country where a firm is domiciled or where the risk arises. Once a firm or individual is based outside the UK or Ireland these regulatory requirements can restrict access to cover, particularly ICAEW-qualifying insurance.
Generally, UK insurers can only insure overseas‑based firms if they are licensed in the relevant territory or if a local insurer fronts the policy on their behalf. Brokers face similar restrictions and must also be licensed locally. In practice, this often requires both a local broker and a UK broker to be involved, which increases cost and complexity and can make cover uneconomical, particularly for smaller firms or sole practitioners.
What members and firms should know before moving abroad
Members should not assume that their existing PII arrangements will continue unchanged after moving abroad. Renewal may not be possible, and insurers may be unable to provide cover for work carried out from another jurisdiction. If you intend to have employees based overseas, you should discuss the implications in detail with your broker to ensure your arrangements remain compliant.
Before relocating abroad, consider whether:
- your insurer can continue to provide compliant cover;
- your broker is licensed in the destination country;
- your employees will be working overseas; and/or
- a UK-based entity structure is still possible.
Cover in the Assigned Risks Pool (ARP) is only available to firms domiciled in the UK, Channel Islands and Isle of Man.
How to plan ahead for PII if you are moving overseas
Members considering an overseas move are strongly encouraged to seek early advice from their broker, understand the regulatory requirements of the destination country and determine the availability of insurance. You may also consider whether you can continue to trade via a UK-based entity.
Dispensation from the PII Committee (PIIC) may be available in relation to a policy of non-qualifying insurance, for example a policy issued by a local insurer or insurance that complies with the requirements of another professional body. However, dispensation* is granted at the absolute discretion of the PII Committee and is considered on a case-by-case basis.
* Dispensation
Dispensation is granted in exceptional circumstances only and at the absolute discretion of the PII Committee. When applying for dispensation you must evidence that qualifying insurance is not available. Details about the dispensation process and an application form is available via the Technical Advisory Service.
It is important that if you are planning to relocate overseas, you speak to your broker or insurer as early as possible and review the relevant regulatory and insurance requirements before you move.
Frequently asked questions
Can I keep my existing PII if I move abroad?
Not necessarily. Members should not assume that existing arrangements will continue unchanged after relocating overseas. Renewal may not be possible, and cover may not extend to work carried out from another jurisdiction.
Do I need compliant PII if I live overseas but serve UK clients?
If you are engaging in UK public practice, including providing services to UK clients, you will still need to comply with the PII Regulations and obtain compliant PII.
Why does moving abroad affect PII availability, making it harder to obtain?
Insurance is regulated by territory. Insurers and brokers may need to be licensed in the country where the firm is based or where the risk arises, which can limit access to qualifying cover.
Can a UK insurer cover an overseas-based firm?
Yes, but not always. A UK insurer can generally only cover an overseas-based firm if it is licensed in the relevant jurisdiction or if a local insurer fronts the policy on its behalf. Because insurance is regulated on a territorial basis, this can increase cost and complexity and may make cover harder to obtain, particularly for smaller firms or sole practitioners.
Is Assigned Risks Pool (ARP) cover available if my firm is based abroad?
No. Cover in the Assigned Risks Pool is only available to firms domiciled in the UK, Channel Islands and Isle of Man. It is not available to overseas-based firms.
Can non-qualifying insurance ever be accepted?
In exceptional cases, dispensation from the PII Committee may be available, but decisions are discretionary and made on a case-by-case basis.
Can a firm or member request a dispensation to practice in the UK while living abroad?
Dispensation is granted solely at the discretion of the PII Committee and is considered on a case-by-case basis. You need to provide details about the proposed non-compliant policy and evidence that qualifying insurance is not available. Contact the Technical Advisory Service on their advice line to discuss your situation either by telephoning them or engaging with the live chat to reach one of our experts.