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Business Insurance for Accountants and Accounting Firms

Accountant insurance

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As an accountant, your clients count on you for expert advice on everything from generally accepted accounting principles to preparing financial statements and mastering the intricacies of the tax code. You and your firm play a key role in helping individuals and businesses build their financial futures.

Having the right insurance coverage for your accounting firm can provide peace of mind that your firm will be covered from the financial repercussions of lawsuits against you or your firm so that you can stay focused on delivering the highest level of services to your clientele. Even though you may not expect it to happen, disgruntled clients could sue you over accounting work you’ve done in the past that they’re unhappy with. Fires or leaks could damage your business property. With the electronic and digital nature of modern business, hackers could access confidential client information.

A host of other issues could potentially bring catastrophic financial losses to your firm. Ensuring that you’ve purchased the right insurance coverage for your accounting firm can provide protection for your business finances in the event you are sued.

You may be interested in purchasing insurance for your accounting business if:

What insurance coverage do I need for my accounting practice?

Some of the most common coverages for accounting firms are listed below, along with examples of incidents that would trigger these coverages.

Professional Liability Insurance

Professional Liability Insurance, also known as Errors & Omissions Insurance, protects your accounting firm against allegations of mistakes or poor quality work by an unhappy client. If work you’ve done or advice you’ve given to a client in the course of your business as an accountant causes a client to lose money, they may sue you or your firm for damages.


Commercial General Liability Insurance

Commercial General Liability Insurance protects your business if you physically injure another person or cause damage to someone else’s property. While generally not required by law, general liability insurance is widely considered essential to running any type of business. If you are renting office space, in particular, general liability insurance may be a requirement of your lease.


Commercial Property Insurance

Commercial Property Insurance provides protection for property that your business owns or is responsible for.


Additional Coverages


During the course of business, any business owner and service provider is bound to incur some financial loss due to a mistake or error. However, with a highly specialized profession such as accounting, which allows access to very sensitive and highly confidential information, the consequences of such an error increase exponentially. A mistake could mean financial losses for a customer and, in turn, a lawsuit that may be financially crippling for your own business. Moreover, the same everyday risks that a business faces, like natural disasters or accidents, are still a real threat.

If you are an accountant or own an accounting firm, taking preventative measures to plan ahead for eventual pitfalls could be crucial to your survival. With the right insurance coverage, you can not only protect your business and financial livelihood, but you can also provide safety and security for those under your employ.

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