Insurance for bookkeepers

What is bookkeeper insurance?

Bookkeeper insurance is designed to protect bookkeepers from the unique risks associated with operating a bookkeeping business. Since bookkeepers handle sensitive financial data, they can be held liable for errors, omissions, or negligence in their work.

Who needs bookkeepers’ insurance?

If you’re a professional who works in bookkeeping, accounting, or tax preparation, you may face risks like errors, legal claims, and cyber threats – all of which can be mitigated with bookkeepers’ insurance. Accounting firms and corporate bookkeepers also rely on insurance to safeguard against fraud accusations and financial mismanagement claims. Virtual bookkeepers face cybersecurity risks, making cyber liability insurance an essential safeguard. Choosing the right insurance policy provides stability, credibility, and peace of mind in a profession where accuracy and trust are paramount.

How much does bookkeeper insurance cost?

Insurance for bookkeepers can vary in cost depending on things like your business size, your revenue, and the specific coverage limits you choose. To find out how much insurance will cost for your bookkeeping business, get a quote.

What does bookkeepers’ insurance cover?

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.

What insurance do I need as a bookkeeper, tax preparer, or accountant?

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.

Tax preparers’ insurance

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) may 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.

Bookkeepers’ insurance

Bookkeeper insurance covers businesses that provide income and expense tracking services and keep general ledgers for their clients. Bookkeeper liability insurance may 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 to 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, and they sue.

Accountants’ insurance

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 various payment options (with no additional fees) to help you manage your cash flow.
• Customized insurance: We specialize in businesses like yours and customize coverage to the risks in your field.
• Claims responsiveness: When a covered claim is reported, Hiscox will promptly assign a dedicated claims representative to assist you.
• Coverage for contracts: Our bookkeeper insurance coverage satisfies most standard contract insurance requirements.
• Passion for service: Agents knowledgeable about your business concerns will provide you with excellent service.

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; Saturday – Sunday, 8am – 5pm ET.

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.