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Business Insurance for Bookkeepers and Bookkeeping Services

Bookkeeper insurance

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Bookkeepers, also called bookkeeping clerks, are tasked with, in essence, “keeping the books.” This means being responsible for the general ledger and keeping track of income and expenses. Depending on the size of the business, bookkeepers may be involved in managing payroll, preparing invoices, producing financial statements and reports, maintaining the annual budget, or reconciling accounts. While bookkeepers share some similar responsibilities with accountants, bookkeeping is focused much more on transactional data and straightforward analysis.

Given the duties of bookkeepers, they are privy to a host of confidential and sensitive financial records and information. Their work in maintaining the general ledger is key to a business’s accurate financial reporting. Because of the importance and sensitive nature of their work, bookkeeping businesses may be exposed to a variety of risks and liabilities. One small mistake can lead to an unhappy customer who may blame your business and take you to court for damages. It is best for anyone involved in the financial services industry to seek proper safeguards and protection from financial liabilities. For bookkeepers, this is particularly important.

The right insurance coverages can help protect your bookkeeping business from not only the everyday risks of doing business, but also specific risks that bookkeepers may be more susceptible too. It may be a dissatisfied customer who faults your business for financial errors or poor guidance, or it could be an employee of yours who unwittingly gets hacked and exposes a trove of confidential customer information—these scenarios could end up financially crippling your business without the proper insurance policies in place. As a business owner, it’s up to you to make sure that you’ve sufficiently prepared for any worst-case scenario.

You should consider purchasing business insurance for your bookkeeping business if:

What insurance coverage do I need as a bookkeeper?

Below we’ve highlighted some of the most important business insurance coverages boookkeepers should pay attention to, along with a few examples of how these coverages would be applicable to your business.

Professional Liability Insurance

As a bookkeeper, you may, at times, be faced with customers who are unhappy with the work you’ve done for them. They may accuse you of errors in your work or of poor guidance, which ultimately could lead to lawsuits against your business. Professional Liability Insurance, also known as Errors & Omissions Insurance, can protect you from liability created in the performance of your professional duties. If a client perceives that your business has injured them or caused financial losses through your mistakes or negligence, they may sue you and your business, and professional liability insurance can help pay for damages and legal fees. This type of professional liability is usually excluded from a general liability insurance policy.


Commercial General Liability Insurance

For almost any type of business, purchasing General Liability Insurance is the first step to providing basic liability protections for your business. If your bookkeeping business or one of your employees injures a third-party in the course of business, liability insurance can help protect your business against the financial consequences of lawsuits. Third-parties include anyone who is not an employee of your business, such as a vendor, customer, or landlord. General liability insurance covers claims from physical injuries or property damage caused by your business. It also covers non-physical injuries such as libel, slander, copyright infringement, or false advertising.


Commercial Property Insurance

Commercial Property Insurance will cover you if property that you use in your bookkeeping business is damaged or lost due to accidents or disasters. This type of insurance covers property such as buildings, equipment, inventory, furniture, tools, and computers. Common covered causes of loss include fire, wind, hail, and vandalism. In some policies, theft is also covered, but even when theft is covered, employee theft is usually excluded.


Additional Coverages


No matter how careful you are in your everyday business, unexpected and unfortunate events can and do happen. From freak accidents to natural disasters, there are some things that you just don’t have any control of as a business owner. Even with things you do believe you have control over, like the quality and consistency of your professional work, mistakes do happen. With a sensitive profession like bookkeeping, one mistake has the potential to cause serious financial damage—for both you and your client.

One thing that you can control is your preparedness as a company. Finding the right insurance coverages for your bookkeeping business can mean the difference between success and failure. Take the time to research exactly what protections you need, and take action in setting up the appropriate financial safeguards for both our company and your employees.

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