Registered BAS and tax agents will be required to hold professional indemnity insurance coverage from July of next year, the Tax Practitioners Board has announced.

Following a “priority” review, board chair Dale Boucher says the need for a minimum insurance requirement is clear.

“Professional indemnity insurance is an important and sensitive matter for agents,” he said. “It is also an important protection for clients.”

The board is yet to determine factors such as minimum levels of insurance cover, though it has advised some exceptions to the rule are likely.

The board intends to consult with stakeholders, including the insurance industry, before releasing a detailed draft statement in September. The new rule is due to come into effect on July 1 next year.