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What kind of insurance is best for bookkeepers?
As a bookkeeper you provide a critical function to other small businesses. At Hiscox we understand the unique risks you face, that's why we offer specialized bookkeepers insurance customized to fit your small business needs.
Professional liability insurance, sometimes called errors and omissions insurance (E&O insurance), is insurance coverage for claims against businesses that provide professional and personal services – for businesses like yours. When is it important to have professional liability insurance? Examples include:
- Journal entry error: As a bookkeeper you are responsible for recording the day-to-day financial transactions for small businesses which can be an activity prone to simple human error. Professional liability insurance could protect you if you face a claim for negligence, even if you haven’t made a mistake.
- Negligence: A client has hired you as bookkeeper. While working for the client you provided revenue and expense information to the client’s accountant who prepared the client’s taxes. The client was audited, and irregularities were found which resulted in a fine from the IRS. The client sued you for negligence. Professional liability insurance can protect against claims of negligence and will appoint an attorney if needed, even if they haven’t made a mistake.
Learn more about professional liability insurance.
General liability insurance, sometimes called Commercial General Liability (CGL), protects your business from another person or business’s claims of bodily injury, associated medical costs, and damage to property. Having this kind of coverage is beneficial in several instances:
- Property damage: You’re visiting your client’s office for your quarterly review, and you accidentally spill coffee on your client’s brand new computer, damaging it beyond repair. General liability insurance will cover a claim that may arise, up to your limits of liability.
- Bodily injury: You have rented office space on the second floor of an antique house that had been renovated for commercial use. A client who was leaving the office fell down the stairs when a handrail gave way, suffering injuries that required treatment at the emergency room. The client sued for his injuries. General liability insurance protects against third-party claims of bodily injury, associated medical costs and property damage.
- Personal injury: A bookkeeper at your office made disparaging and untrue remarks about a client to a friend. The client turned out to be related to the friend, and the conversation got back to the client, who sued the bookkeeper for slander. General liability insurance protects recruiters against third-party claims of slander, property damage, bodily injury and associated medical costs.
Learn more about general liability insurance.
Business owners policy (BOP) is a combination of general liability and business property insurance. BOP is often used to provide balanced coverage for small businesses who also want to protect their own business equipment. Some examples of what could be covered are below:
- Bookkeepers manage large amounts of sensitive financial data on a daily basis. Loss or damage to your electronic data by fire could result in a loss of income for your business if you could not function. Our standard business owners policy includes up to $10,000 of coverage to replace or restore your electronic data.
- For example, a pipe bursts in the ceiling of your office damaging all your furniture, computers, and other business personal property. A business owner’s policy could cover the cost to replace the damaged property, allowing you to get back to business as soon as possible.
Learn more about business owners policy.
Do you need bookkeeper, tax preparer or accountant insurance?
The functions of a bookkeeper, a tax preparer and an accountant can overlap. When you’re looking for insurance for your business, you want to make sure you get the right insurance so you’re covered, but you don’t want to pay for anything you don’t need.
Insurance for tax preparers covers people who only prepare taxes in the course of their business. They may be personal income taxes or business taxes, but that’s all they do. Errors and omissions insurance for tax preparers (sometimes called professional liability insurance) can cover situations like this: You advised a client about the types of business deductions they could take. They took some deductions that were outside the scope of what you advised, and the IRS disallowed them and assessed a penalty. The client made a claim against you for the penalty, alleging that you were not clear in your recommendation.
Bookkeeper insurance covers businesses that provide income and expense tracking services and keep general ledgers for their clients. Bookkeeper liability insurance could cover a situation like this: A client for whom you do the books is applying for a business loan. They take the financial statements you have prepared for the bank, but they are turned down for the loan. The client insists that you understated their income and overstated their expenses, resulting in the bank denying their application.
If your business provides both tax preparation and bookkeeping services or provides other accounting services, consider an Accountant insurance policy. This will protect you from claims and lawsuits that could stem from the range of services you provide.
Why bookkeepers choose Hiscox:
- Flexible payment options: We offer you the option of making monthly payments (with no additional fees) to help you manage your cash flow.
- Tailored insurance: We specialize in businesses like yours and tailor coverage to the risks in your field.
- Claims responsiveness: When a covered claim is reported, Hiscox will immediately assign a dedicated claims representative to assist you.
- Coverage for contracts: Our architects insurance coverage satisfies most standard contract insurance requirements.
- Worldwide coverage: A business insured through Hiscox is covered for work done anywhere in the world, as long as the claim is filed in the U.S., a U.S. Territory or Canada.
- Passion for service: Agents knowledgeable about your business concerns will provide you with excellent service—4.7/5 people surveyed recommended us.
Get a fast, free quote now and get that Hiscox confidence behind your bookkeeping business. If you prefer, you can call us at 1-866-283-7545 and speak with a Hiscox licensed agent, Monday – Friday, 7am – 10pm ET.
Hiscox Customer Reviews
“Small Business Coverage”
The overall service was excellent and very easy to customize to the needs for coverage. I would hope that Hiscox would include unemployment insurance options to provide a complete package for a small business. This would be a ... convenient and efficient "one stop" shopping for small businesses to cover all insurance requirements
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Wish I could have finished it online. I had to make a phone call to complete the application. The agent was very helpful and informative.
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It was good, all my questions were answered promptly.
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Great customer service. They have been able to customize all of my requests and offer very competitive pricing.
This information is provided to assist you in understanding the coverage we offer and does not modify the terms and conditions of any insurance policy, nor does it imply that any claim is covered. Coverages are subject to underwriting and may not be available in all states.