A legal fight launched by Sir Elton John to recover touring expenses from his accountants Pricewaterhousecoopers (PWC) could cost its public liability insurers up to £20m.

Elton's lawyers told the High Court that, for more than 10 years, PWC had charged the expenses of his overseas tours to him personally, instead of his management company John Reid Enterprises.

Elton has issued a writ alleging that PWC was negligent in not contacting him or his solicitors when initial concerns were noted earlier during the 10-year period.

PWC refused to disclose the names of its professional indemnity insurers.