Understanding Business Insurance for Accountant Professionals
As an accountant professional or Certified Public Accountant or CPA firm, you know that meticulous record-keeping and careful attention to detail are crucial for your client’s financial well-being.
But even the most conscientious accountant can face liability risks and gaps in coverage that could put their business at financial risk.
What if a tax filing error results in an audit or penalties for a client, and they decide to take legal action? What happens if you accidentally disclose confidential client data or fail to keep records private?
From errors and omissions to property damage and theft, potential risks threaten your business.
So you need an insurance program tailored specifically to meet the needs of accounting professionals.
At The Allen Thomas Group, we have over 20 years of experience providing customized insurance solutions to professional services nationwide.
Contact our insurance company when you’re ready for a free consultation and insurance quote for your accounting firm.
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Critical Coverages and More Understanding About Insurance For Accountants
As an accountant, you face liability exposures that most other small business owners don’t. Here are some of the most important types of insurance coverage to consider.
- Professional liability coverage
- General liability
- Workers compensation insurance
- Cyber liability
- Umbrella liability
- Commercial property insurance
The independent agents at The Allen Thomas Group take the time to understand the unique risks accounting businesses face so we can offer policies to help protect what you’ve worked so hard to build.
Also called errors and omissions insurance (E&O), professional liability insurance helps accountants and CPAs cover damages if you make a mistake that causes financial loss for a client, such as missing a tax deadline or providing incorrect advice.
Professional liability insurance for accountants covers legal defense costs and settlements up to the policy limits. Requirements for professional liability policy vary by state. However, most states require a professional liability insurance policy for a licensed accountant and CPA business.
You cannot ignore some forms of insurance. In fact, professional liability insurance is crucial form of insurance you need for your bookkeeping business.
General liability insurance can help cover claims of bodily injury or property damage that occur on your business premises.
For example, if a client slips and falls in your office, general liability insurance helps pay their medical bills and covers legal expenses if they sue.
Liability coverage would protect your accounting business if you or an employee accidentally damage a client’s property.
Commercial property insurance can help protect you against damage to your office space and contents due to fire, theft, vandalism, severe weather, and water damage from plumbing leaks or pipe bursts.
Insurance protects your equipment like computers, servers, copiers, and client records stored on-site.
Cyber insurance coverage can help protect your accounting business if your network is hacked and client records or funds are stolen.
It pays the cost of notifying clients, repairing digital infrastructure, loss of income, and PR crisis management.
Workers’ comp covers lost wages and medical care if an employee gets injured at the worksite.
It provides wage replacement and disability benefits as required by law.
You need commercial auto insurance if your firm owns vehicles used for client meetings or other business purposes.
It covers liability and damage costs related to accidents involving company vehicles.
For added protection, umbrella insurance for accountants provides additional liability coverage beyond the limits of your other policies.
It adds an extra layer of protection for high claims.
Why Do Accountants Need Business Insurance Policies?
Accountant and CPA insurance is crucial for protecting your assets and reducing liability. The right insurance coverage can help:
- Professional liability claim cover legal costs, judgments, and settlements if you are sued for errors, omissions, or negligence. E&O insurance or professional liability insurance is crucial for CPAs in most states.
- Pay for property damage or theft of computer equipment, furniture, and client files.
- Cover medical expenses for employees injured on the job.
- Protect your business if clients are injured on your premises. General liability insurance covers bodily injury and property damage claims.
- Replace lost income if you cannot work due to covered illness or injury. Disability insurance provides income replacement.
- Pay outstanding business expenses or employee salaries if you pass away unexpectedly. Life insurance can keep your mid-sized accounting practice running.
- Cover attorney fees and court costs if you need to defend yourself against allegations of professional misconduct or violations of accounting regulations.
A single claim could put your business and personal assets at serious financial risk without adequate insurance coverage. However, not all insurance policies are created equal.
Work with a trusted insurance agent to get the best insurance advice and ensure your insurance requirements are covered with sufficient limits.
The Allen Thomas Group is happy to guide you through various insurance options.
Getting The Right Insurance For Accountants
We know how frustrating and complex the process of finding the right coverage and getting a COI can be and how it slows down your ability to care for your customers.
Let us help fix it for you in 3 easy steps.
Tell us about your specific needs and we will find the right policy for you.
Review the results of our search.
We will walk you through your new policy step by step.
It Just Takes A Few Clicks
FAQs on Accounting Insurance
Professional liability insurance, errors and omissions insurance, business interruption insurance, commercial property insurance, and cyber liability insurance.
Insurance premiums vary based on your location, firm size, years in business, revenue, and claims history. Professional liability is usually the largest expense.
Expect to invest at least 5-15% of your annual revenue in adequate insurance.
Yes, new businesses can obtain insurance. Since you don’t have a claims history, carriers may ask for your resume, qualifications, professional affiliations, and projected billings. Be prepared to pay a higher premium as a new firm.
Depending on the jurisdiction and type of accounting services provided, some types of accountant insurance may be legally required.
Not necessarily. Some E&O policies exclude IRS audit defense and penalties.
Ask your agent if tax prep, bookkeeping, and non-licensed accounting services are covered.
Firms doing tax preparation may need tax preparer coverage.
Letting your policies lapse leaves you exposed. Make sure there are no gaps in coverage when switching insurers.
Claims from past acts may not be covered with a new carrier. Maintain continuous coverage as you grow.
Accountant insurance is typically provided by professional indemnity insurers or specialty brokers who specialize in this type of coverage. The Allen Thomas Group is able to get you precise coverage for your practice.
- New York
- North Carolina
- South Carolina
Protect Your Business With CPA Insurance From The Allen Thomas Group
As a leading insurance agency for accountants, The Allen Thomas Group partners with top commercial carriers to find the best client protection.
We provide fast quotes, responsive support, and expert guidance tailored to your accounting practice.
Our team of specialists will:
- Evaluate your risks and make coverage recommendations
- Compare policies from trusted insurance providers
- Answer all your questions on policy options
- Ensure you have adequate limits and financial protection
- Handle claims quickly and efficiently
Don’t leave your small or large accounting firm vulnerable to risks. Work with an independent insurance agent who understands the risks accountants face.
Contact The Allen Thomas Group today to get started and get a certificate of insurance!
It always helps to get professional help to protect accountants with a special CPA insurance policy.
Business insurance gives the protection you need to safeguard your business.
Get a Free Online Quote Or call our insurance specialists at (440) 826-3676 to find the right insurance designed to protect accounting profession.
With us, you have a guarantee that you need not pay more for insurance.