Bookkeeper and Tax Preparer Insurance

Protect your bookkeeping businesses with customized coverages

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Specialized insurance for bookkeepers and tax preparers

Bookkeepers and tax preparers work with sensitive financial information every day. The right bookkeepers insurance protects you and your customers so you can crunch numbers with confidence.

What is tax preparer and bookkeeping insurance?

Bookkeeper insurance is tailored business insurance that covers the unique needs of financial professionals. A customized policy can include basic liability protection and optional coverages for common industry risks, such as lawsuits and data breaches.

The experts at Progressive Commercial can help you make informed decisions about bookkeeping and tax preparer insurance. Give us a call or start an online quote for coverage today.

Why insurance for bookkeepers and tax preparers is important

All companies can benefit from business insurance, but it's especially important for bookkeepers, tax preparers, and other financial professionals. Handling sensitive customer information exposes you to risks that other kinds of work don't have. That's why the right policy matters.

For example, say you make a mistake on a client's tax form that results in the IRS issuing them a penalty. The client may sue you for the loss, but with tailored insurance for tax preparers, you'd have coverage to pay the cost of defending yourself or settling the claim.

The insurer you work with is important, too. With Progressive Commercial, you get more than insurance — you get an expert team that helps protect your business and supports you through the policy process.

Who needs bookkeeper insurance?

Anyone who works with financial information can benefit from this type of business insurance, including:

Tax preparers
Bookkeepers
Accountants
Financial adviser
CPAs
Auditors

Whether you're an independent contractor running a sole proprietorship, operating an LLC, or working for a startup, the right bookkeeping insurance can give you a safety net.

Do bookkeepers need insurance by law?

It depends. Your industry, business setup, contracts, and more affect the types of insurance you'll need. If you have employees, you'll probably need to carry workers' compensation. Other kinds of bookkeeping insurance coverage, like professional liability, aren't required by federal law, but may be necessary depending on your association's standards.

If you're unsure whether you need insurance, we can help. Explore your options online or give us a call to discuss your business and find out what coverages are right for you.

Types of insurance for tax preparers and bookkeepers

Insurance for bookkeeping businesses might include basic coverage, like general liability, and more specific protections that address your unique risks. Whether you're managing ledgers or working with customers, your work carries responsibilities that deserve protection.

General liability (GL)

Protects you from third-party claims

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General liability insurance can help if you cause property damage or bodily injury to others. GL also includes coverage for personal and advertising injury, which includes libel and copyright infringement. Explore the benefits of general liability and how much general liability costs.

Example: You create a blog with financial tips that are similar to a competitor's proprietary content. If they sue for copyright infringement, general liability insurance could help defend you.

Business owners policy (BOP)

Packages liability and property coverage in one flexible policy

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A BOP combines liability with commercial property insurance. It includes protection for buildings and business personal property, such as computers and office furniture. See our BOP coverage guide to explore ways to customize your policy with add-ons like miscellaneous professional liability.

Example: You arrive at your office to find it's been vandalized. Your BOP can cover repairs and cleanup, as well as lost income if you have to close your business temporarily.

Commercial auto

Covers accidents and damage related to your business vehicles

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If your business relies on vehicles, you might need commercial auto insurance to cover accidents and other events while driving for work. There are specific commercial auto insurance requirements by state, so it's important to understand the rules where you live. You can also add more commercial auto coverage for theft, vandalism, and collisions.

Example: While en route to meet a client, you accidentally rear-end another car. The right commercial auto coverages can help pay for the other driver's injuries and repairs to both vehicles.

Workers' compensation

Protects workers injured on the job

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Many businesses are legally required to have workers' compensation coverage to protect employees who are injured on the job. This insurance can pay for medical costs, legal fees, and other related expenses. Workers' compensation costs are based on various factors, such as your profession, number of employees, and location. Explore more on workers' comp insurance in your state.

Example: An employee falls and breaks their ankle while reaching for tax records on an office shelf. Workers' comp could cover their medical care and lost wages while they recover.

Cyber

Provides financial protection against cyber attacks and data breaches

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Businesses that work with or store sensitive information, such as client financial data, should carry cyber insurance to protect against lawsuits and other costs associated with data breaches and digital disruptions. Learn more about cyber insurance costs and what it covers.

Example: A client's personal account information gets compromised, and they sue you. Cyber insurance can help investigate the data breach and cover related attorney fees, court costs, and settlements.

Errors and omissions (E&O)

Helps manage claims of negligence or bad advice

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Errors and omissions is a type of professional liability insurance that can support your business if a client claims your advice or services caused a financial loss. It can pay for settlements and legal defense, regardless of whether you made a mistake.

Example: You accidentally misclassify a client's operating costs, and they're fined as a result. If they decide to sue, E&O insurance for bookkeepers could help cover your legal expenses.

Do bookkeepers and tax preparers need a certificate of insurance (COI)?

Many companies and professionals will only work with you if you're insured. A certificate of insurance (COI) proves you have the protection you need. It lists the details of your policy, such as coverages and effective dates, so potential clients feel confident partnering with you.

How much does bookkeeper insurance cost?

What you'll pay for insurance varies depends on the risks your business faces. For example, an independent contractor working with a handful of clients will typically pay less than a large company with many employees.

For bookkeeping and tax professionals, factors that determine your rate can include:

Number of employees
Years in business
Claims history
Coverage limits
Location
Number of company vehicles

Find out more about how the cost of business insurance and commercial auto rates are calculated.

Bookkeepers insurance through Progressive Commercial

Progressive Commercial has been protecting small businesses like yours for over 50 years. Our expert agents and wide range of specialty coverages make it easy to get a customized policy with the protections that matter most to you.

Give us a call or get an online quote to learn how we can help your business stay safe while balancing the books.