Errors and Omissions Insurance for Bookkeepers & Tax Preparers
Professional liability insurance is also known as errors and omissions insuranceand professional indemnity insurance. It helps cover claims of:
- Negligence
- Inaccurate advice
- Misrepresentation
This coverage is important for businesses that offer professional services or advice. For example, tax preparation businesses or a bookkeeping business would benefit from this policy. To learn more about E&O insurance for bookkeepers and tax professionals, get a quotetoday. We can also help you get other important business insurance policies, like general liability or commercial auto coverage.
Can a Bookkeeper or Tax Preparer Be Held Liable?
Professional liability insurance for tax preparers and bookkeepers is important coverage for your small business. If a client sues your company for a mistake in your services, this coverage can help pay your legal costs. Without it, you’ll have to pay for claims of errors or omissions out of pocket.
What Is Covered By E&O Insurance for Bookkeepers?
E&O insurance helps protect bookkeepers and tax preparers from claims that they made mistakes in the professional services or advice they provided. Some scenarios where professional liability insurance can help cover tax preparers and bookkeepers include your:
- Tax preparer filing a client’s taxes on the wrong date, causing them to face penalties. Your client then files a claim against your firm.
- Bookkeeper misplacing financial records for a client that are essential to an audit. When your client finds out your business misplaced them, they file a claim against you.
- Tax preparer submitting the wrong Social Security number on a client’s taxes, delaying their return. Your client files a claim against your business as a result.
Professional liability insurance is one of the most important coverages for tax preparers. Without it, your business will be responsible for paying your legal defense costs out of pocket.
Even if you didn’t make a mistake in the professional services given, your client can still sue you. That’s why professional liability insurance for bookkeepers is important to have.
What Other Liability Insurance Do Bookkeepers and Tax Preparers Need?
Your professional liability insurance helps protect you and your employees from errors and omissions in your professional services. However, it doesn’t help cover claims of:
- Bodily injury
- Property damage
- False advertising
To get insurance coverage for the additional risks your business faces, you’ll need policies like:
- Workers’ compensation insurance
- Cyber liability insurance
- General liability insurance
- Commercial property insurance
To learn more about what bookkeeper and tax preparer insurancecovers, get a quotetoday.
How Much Does Professional Indemnity Insurance for Bookkeepers Cost?
The cost of errors and omissions insurance for tax preparers and bookkeepers varies. There are various factors that can influence how much you’ll pay for this type of small business insurance, including your:
- Type of business
- Location
- Coverage limits
- Deductible amount
- Number of employees
- Years in business
- Claims history
Additional Tax Preparer and Bookkeeper Insurance Links
To learn more about E&O insurance for bookkeepers and tax professionals, get a quotefrom us today. We’re an insurance company that’s been helping small businesses for over 200 years.
