Does tax preparer insurance cover client data breaches or identity theft?

Yes! If you include Cyber Liability Insurance in your plan. 

This coverage typically helps pay for: 

  • Legal defense 
  • Client notification and credit monitoring 
  • Data recovery and breach investigation 
  • Ransomware response or extortion payments 

Tax preparers are frequent targets of phishing scams and cybercrime, especially during tax season. 

If you store Social Security numbers, W-2s, or financial records, cyber coverage is not a luxury—it’s a necessity. 

By Heather

Heather is a skilled content writer with a strong background in English literature and business management. She creates compelling content for small businesses, combining engaging storytelling with data-driven insights to fuel growth and provide real-world insights.