To protect your business from the unique risks of tax preparation, consider these core coverages:
- Professional Liability Insurance (E & O) – Protects against client claims related to tax filing errors, missed deadlines, or incorrect advice.
- General Liability Insurance – Covers physical incidents, like if a client slips in your office or you accidentally damage property during a consultation.
- Cyber Liability Insurance – Helps cover the cost of a data breach, ransomware attack, or lost client information.
- Business Owner’s Policy (BOP) – Bundles property and liability protection and often includes business interruption coverage.
- Workers’ Compensation – Required in most states if you employ anyone, even part-time or seasonal help.
If you handle sensitive data, meet with clients, or offer financial advice, this coverage isn’t optional—it’s foundational.
