Accounting/CPA Insurance
Accounting insurance is a type of professional liability insurance that protects accountants and CPAs from financial losses arising from errors and omissions in their work. This insurance is sometimes referred to as certified public accountant or CPA insurance. This is an important type of business insurance that can help protect against costly lawsuits and other financial problems. While professional liability insurance is an important coverage for accountants, other critical business insurance products should be considered as well, including policies like a business owner’s policy and workers’ compensation insurance just to name a few.
Why Accounting Insurance?
Accounting/CPA practice insurance is important for a number of reasons. Accountants and CPAs regularly handle sensitive information and manage their clients’ finances, which opens them up to risk. This coverage can help accountants and CPAs from:
- Costly lawsuits and reputation
- Obtain financing and insurance for their firms
- Protection in case of an error or omission in their work
Who Needs Accounting Insurance?
Tax preparers, CPA and accounting firms, payroll preparation and accounting services and other businesses offering accounting services should consider getting accounting insurance. Other small businesses that should consider this coverage include:
- Accounting private practices
- Payroll auditors
- Billing services
Types of Accounting Insurance?
There are a number of different types of coverage that accounting/CPA practice insurance can offer, including:
- Business owner’s policy: Helps cover claims made against an accounting business causing bodily injury or property damage to someone else, and helps protect your firm’s owned or rented building and equipment.
- Errors and omissions insurance: Also referred to as professional liability insurance, this helps cover the cost of defending against lawsuits alleging that an accountant or CPA made an error or omission in their work.
- Workers’ compensation insurance: Helps provide your accounting practice’s employees medical, wage and other financial benefits if they become injured or ill on the job.
- Cyber liability insurance: Helps cover the cost of defending against lawsuits alleging that an accountant or CPA’s data security practices were negligent, resulting in a data breach.
How to Choose Accounting Insurance
When choosing accounting/CPA practice insurance, there are a few things to keep in mind:
- Get quotes from multiple insurance companies to compare prices and coverage options.
- Make sure that you understand the terms of the policy, including the deductible and the maximum coverage amount.
- Keep your policy up to date by reviewing your policy annually and making any necessary changes.
How Much Does Accounting Insurance Cost?
The cost of accounting insurance will vary depending on a number of factors, including the type of coverage that is desired, the size of the accounting firm, the location of the accounting firm and a few other considerations. Accordingly to Insureon, an online insurance agency, the monthly costs for the business insurance that accountants need can look similar to the following[1]:
- Professional liability insurance: $45/mo or $500/annually
- General liability insurance: $30/mo or $350/annually
- Cyber liability insurance: $90/mo or $1,060/annually
- Workers’ compensation insurance: $35/mo or $395/annually
Get a Quote for Accounting Insurance
If you own an accounting business, it’s important to consider purchasing business insurance. Get a quote from one of our favorite providers for accounting insurance today.
Disclaimer
No Legal Responsibility for Information
At BuyLiability.com, we spend hours researching Small Business Insurance companies and marketplaces to help create useful, unbiased product reviews for Small Business Owners like you. In doing so, we make every effort to keep the most updated and accurate information on our website, but we make no warranties as to the accuracy, timeliness and completeness of the information referenced within. We are not liable in any manner for any direct, indirect or consequential damages arising out of the access, use or inability to use our website, or any third-party site linked to our site. We have no control over third-party websites that we link to on our site and as a result, are not liable for third-party websites that we link to on our site and are not responsible for the content, its accuracy, function or legality of the actual websites.
Affiliate Disclaimer
From time to time, we receive advertising revenue from companies seeking to advertise on our website, however, those payments do not influence our reviews but rather help us keep the lights on. Links that go to company websites and quote applications are referred to as affiliate links. When you click one of those links and fill out an application to get a quote, we receive a small commission, so we can keep this site running without requiring a paid subscription fee from our readers.