Bookkeeper Professional Liability Insurance for CPAs and Enrolled Agents is a critical component of your business protection plan. It helps safeguard your bookkeeping enterprise from professional risks and financial liability.
You need Bookkeeper Professional Liability Insurance if:
- You have assets that could be at risk in a lawsuit.
- You provide advice or services that could result in a client’s financial loss due to an error, omission, or mistake on your part.
Bookkeeper Professional Liability Insurance typically covers:
Claims from clients alleging professional negligence or failure to perform agreed services.
- Financial damages and legal costs resulting from lawsuits.
- Protection for your business and personal assets from claims of errors, omissions, or negligence by you or your employees.
- Losses suffered by others due to your professional judgment, such as IRS penalties or interest from a misfiled return.
- Legal defense fees, including court costs and judgments.
Laws, regulations, and audit standards are always changing—but your clients expect you to stay current. Failing to do so can result in serious financial consequences for both your clients and your business.
Defending yourself from a legal claim can be financially devastating. Bookkeeper Professional Liability Insurance helps reduce this risk and provides peace of mind as your business grows.
As your bookkeeping business expands, consider increasing your coverage to match your exposure.
A qualified and local insurance expert can help you with advice and insurance quotes for your specific needs.
Frequently Asked Questions
What is Bookkeeper Professional Liability Insurance?
It is a type of insurance that protects bookkeepers, CPAs, and Enrolled Agents against claims of errors, omissions, or negligence while performing professional services.
Is this insurance required by law?
Requirements vary by state and client contracts. While not always legally required, it is often recommended to protect your business from costly lawsuits.
What types of claims does this insurance cover?
It typically covers claims involving professional mistakes, failure to deliver services as agreed, and financial losses suffered by clients due to your actions or advice.
Does this insurance cover IRS penalties?
It may cover client losses stemming from your professional judgment, such as penalties or interest due to an error in tax preparation, depending on the policy details.
Can I get coverage if I work independently?
Yes. Whether you're self-employed or run a small firm, you can get professional liability coverage tailored to your business size and risk level.
Still have questions? Talk to a local insurance expert.