While every accountant has different clients and specialties, everyone in the profession faces similar risks. Individuals and businesses trust you to properly handle their personal financial information, give proper advice, meet legal requirements, and keep expenses low. Despite your expertise, care, and diligence, mistakes can and will happen and someone could suffer harm. Even if you have not done anything wrong, clients may feel dissatisfied and sue for damages. The best way to protect yourself and your business against these potential liabilities is with a comprehensive accountant insurance policy.

This guide will provide all the details you need to know about accountant insurance costs so you can choose the best policy for your business.

We Cover in This Guide

• How much does accountant insurance cost?

• What is accountant insurance?

• What does accountant insurance cover/not cover?

• Benefits and risks

• Types of insurance you may need

• Tips for buying

• FAQ

• Summary

How Much Does Accountant Insurance Cost?

Accountant insurance costs range from $39 to $119 per month depending on your provider, coverage choices, limits, number of employees, clients, and the size of your company. While individual needs may vary, the following are some examples of policies that meet most accountants’ needs.

• Basic: $39 per month for general liability
• Standard: $89 per month for general liability + professional liability
• Professional: $119 per month for general liability + professional liability + commercial property

Most insurance companies will allow you to customize your own plan and add supplemental policies to cover your firm’s specific risks and requirements.

What is Accountant Insurance?

Whether you are a CPA, bookkeeper, or any other type of accountant, you face plenty of risks while conducting your work. Your services involve caring for your client’s financial matters and making decisions that directly impact their bottom line. If a client ends up owing more money than they expected at tax time, or with some other unsatisfactory outcome, they may blame you and decide to take legal action. Even if you are not at fault, the costs and potential reputational damage from a lawsuit can be extremely harmful to your business. Accountant insurance is an essential policy designed to protect your company from these situations. Everyone who provides accounting services, no matter the size of their firm or number of clients, should get covered.

What Does Accountant Insurance Cover/Not Cover?

There are a number of potential liabilities an accountant can encounter. A client could slip and fall while coming in for an appointment at your office. You could make a mistake on a tax form and your client be forced to pay a penalty. A fire could break out in your office and destroy all your records and computer equipment.

Typical accountant insurance policies will cover these scenarios and other potential liabilities that fall into the following categories:

• Third-party bodily injury

• Third-party property damage

• Personal injury

• Products/completed operations

• Professional negligence, mistakes, and errors

• Claims from old work

• Errors and mistakes made by people you hire

• Damage and harm to your own property, equipment, and other assets from natural disasters and other covered scenarios

• Broken equipment

• Lost revenue as a result of a disaster or equipment breakdown

• The costs of repairing property, equipment, or other assets

While the protection offered by most policies is fairly wide, some risks are not typically included and require additional insurance for full coverage. They can include:

• Accidents while employees are driving company-owned vehicles

• Employees who get sick or injured on the job

• Hackers accessing your system and leaking client information or blackmailing them

Benefits and Risks

Accountant insurance offers countless benefits to cover the risks involved in handling client finances and taxes. The following are some examples:

• Peace of mind: ​Knowing that your business is covered in case something happens allows you and your employees to focus client needs without being preoccupied with what could go wrong.

• Protecting business assets: Scenarios both within and outside of your control can potentially wipe out your earnings and, depending on the nature of your business, destroy your personal finances. Accountant insurance will cover these liabilities.

• Cover legal expenses: The most costly, time-consuming, and potentially damaging situation a business can find itself in is a lawsuit. If a customer, third-party, or employee sues you, you are protected from the costs of the legal fight as well as the damages if you are found liable.

Types of Insurance You May Need

• General Liability Insurance: Protects you against claims of property damage, personal injury, bodily injury, and other related scenarios by clients and third parties.

• Commercial Property Insurance: Covers your company’s property, assets, and equipment from damage, theft, or breakdown, and will replace lost revenue.

• Business Owners Policy (BOP): A combination policy that typically includes general liability and commercial property. Protects against injury, harm, and damage to yourself, clients, third parties, and property.

• Commercial Auto Insurance: Protects you against property damage and other liabilities resulting from accidents involving business-owned vehicles.

• Workers’ Compensation Insurance: Cover medical costs and lost wages for employee illness and injury.

• Professional Liability Insurance: A coverage designed to protect your business against client claims of harm, damage, or loss as a result of your accounting services.

• Cyber Liability Insurance: Protects your business from liabilities, damages, and losses related to data breaches and other cyber attacks.

Tips for Buying

Accountant insurance costs can be difficult to navigate, but keeping the following in mind will help you get the best deal on your policy:

• Work with an independent agent: An independent insurance agent will help direct you toward insurers with the best rates and the most experience covering accountants.

• Identify your risks: Be sure to thoroughly analyze your firm, its focus, and clients, to identify potential risks.

• Compare quotes: Policy costs vary between insurance providers. Consider at least three quotes to find the best rates and coverage.

FAQ

- Do I need workers’ compensation insurance?

It might be mandatory. Many states require businesses to have workers’ compensation coverage if they have at least two employees.

- What is the difference between general liability insurance and professional liability insurance?

General liability insurance protects your accounting practice against claims that you or an employee caused bodily injury, property damage, or personal injury. Professional liability insurance covers damages related to mistakes, errors, and negligence resulting from your accounting procedures or advice.

- I drive my own vehicle to client meetings. How do I protect myself?

Consider non-owned and hired auto insurance. This policy covers damages or injuries while performing business-related tasks in a personal vehicle.

Summary

Accountant insurance provides essential coverage to protect you from all the risks you may face in your business.

After reading this guide, you should now have a greater understanding of accountant insurance costs and have the information you need to make the right decision about your own policy.