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. 

By Heather

Heather focuses on small business insurance at Gild Insurance Agency, writing clear, practical guidance that helps business owners understand coverage, manage risk, and protect their businesses.