Is professional liability (E&O) insurance required for tax preparers?

While not always mandated by law, professional liability (E&O) is often required by: 

  • Clients or contracting platforms before beginning work 
  • State-level regulations for enrolled agents or CPAs 
  • Banks, lenders, or institutions if you’re helping with financial documentation 

E&O protects you from legal costs—even if you didn’t make a mistake, but a client believes you did. 

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