Tax preparer insurance
One application, multiple quotes.
All in one place.
Essential Protection
From
$25.83
/month*
Can provide coverage if a client claims there was a mistake in the professional services you provided.
What’s included:
Errors & Omissions / Professional Liability
Coverage limits: $100K to $3M†
Get multiple quotes in less than 10 mins
Essential Protection
From
$25.83
/month*
Can provide coverage if a client claims there was a mistake in the professional services you provided.
What’s included:
Errors & Omissions / Professional Liability
Coverage limits: $100K to $3M†
Get multiple quotes in less than 10 mins
Would you rather pick and choose your coverage? Explore all options
Over 1 million customers worldwide.
Buy instantly online.
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Why Does a Tax Preparer Need Insurance?
You work hard to prepare your clients’ tax returns with the utmost accuracy. But we get it: you’re still human. Accidents and mistakes can happen to even the best tax professionals.
That’s why you need a solid business insurance plan.
Simply Business is one of the fastest-growing online insurance platforms that’s focused on small business owners. We can show you affordable general liability insurance plan options, as well as errors and omissions insurance for tax preparers. We’ll help you compare plans and find the right coverage for your business—all online and in less than 10 minutes.
What Type of Tax Preparer Insurance Do I Need?
From
$25.83
/month*
General Liability
A foundational insurance coverage to help handle costs from third-party accidents, property damage, and bodily injury.
From
$20.75
/month*
Equipment and Business Property
Also known as inland marine insurance, this coverage can financially protect equipment and inventory that’s in transport or stored offsite.
From
$20.83
/month‡
Business Owner’s Policy (BOP)
General liability, property insurance, and more all in one convenient package.
From
$33.75
/mon*
Workers’ Comp
Coverage to help take care of employees who get sick or injured on the job. Most states require this coverage for small businesses with full- or part-time employees. It also can benefit business owners who don’t have employees.
From
$20.83
/month‡
Cyber
Coverage to insure e-commerce businesses against claims associated with stolen customer data, cyberattacks, breaches, and fraud.
Business insurance —
a quick explainer
Learn more about policies for small businesses, what they cover, why you might need them, and how we can help – all in just 60 seconds.
Business insurance is often made up of different types of policies to cover different things, similar to how your health insurance can be made up of medical dental and vision coverage. Here are some of the ones small business owners need. General liability is kind of the Swiss army knife of insurance. It can do a lot, like help handle costs from third party accidents, property damage, bodily injury, and more. Nobody’s perfect, right? That’s what professional liability is for. It could come in handy in the event of honest mistakes or claims of negligence. Workers’ comp can protect your business and help take care of employees who get sick or injured on the job. Small businesses are big targets for cyber criminals. Cyber Insurance can help cover costs associated with stolen customer data, cyber attacks, breaches, and fraud. BOP or a business owners policy combines different types of coverages like general liability and commercial property insurance. Putting them together for you is where we come in. You tell us a bit about your business online or on the phone, and we customize the coverage options for what you do and what you need. It’s your business, it should be your insurance as well. That’s why we’re here.
What Type of Insurance Do I Need for My Tax Business?
At Simply Business, our insurance plans can include coverage for accidents and losses, as well as protection if you’re accused of an error, omission, or other negligence. Most often, tax preparers come to us for three different types of policies.
Your clients rely on you to prepare their taxes accurately and on time. After all, audits are expensive, and they want to avoid costly penalties. But here’s the truth: no matter how detail-oriented you are, mistakes can still happen. And even if a mistake isn’t your fault, you still will likely need to defend yourself if you’re accused of negligence.
Fortunately, professional liability insurance (PL) can protect you.
This type of policy is designed to cover the costs of a lawsuit, up to your policy limits. That can include hiring a lawyer, settlement fees, and any other litigation costs.
Think you won’t get sued? Unfortunately, it’s estimated that 43% of small businesses have ended up with a court case or the threat of one. Lawsuits are very real—and very common.
Here’s an example. Let’s say you make a mistake while preparing a client’s tax return, and the IRS conducts a time-consuming audit. Your client gets angry and sues you to cover the costs of the audit and a loss of revenue while working with the IRS.
Depending on the size of your client and the audit’s complexity, this can cost anywhere from $2,000 to more than $7,500 depending on the state you’re based in.
If you have professional liability insurance, your policy can cover some or all of these costs, including hiring a lawyer, obtaining evidence or witnesses, and more. This means you may not have to worry about the financial consequences or rely on your personal savings to pay for your case. It is important that tax preparers consider getting professional liability insurance.
Do you own an office or rent a space to meet with clients? If so, you’ll probably need commercial general liability (GL) insurance. This plan covers costs resulting from third-party accidents, property damage, and bodily injury to third parties, including clients and vendors.
General liability insurance may be considered critical for tax professionals, and here’s why: it can protect you from very expensive claims. In fact, the average customer injury or damage claim is about $30,000. Without general liability insurance, you may have to pay for those costs on your own. For many tax professionals, this could be enough to put their businesses at risk.
Consider this example. Let’s say a client walks into your office and trips over a stack of papers you placed on the floor. The client bumps his head on the way down, which causes an injury resulting in a visit to the emergency room.
If you have general liability coverage, your policy can help cover your client’s costly medical bills, plus legal costs if you get sued (up to your policy limit).
If you have full-time or part-time employees working for your tax business, you may be required to hold workers’ compensation insurance. Consider administrative staff, other tax preparers, and even students or interns. This type of coverage can cover you if one of these employees experiences an injury or illness on the job.
If you have employees, workers’ compensation insurance is usually a requirement. But it’s important to check to see your state’s laws first. It makes sense as workplace injuries are incredibly costly. In fact, the average work injury cost totals $41,000, and in 2018 alone, there were $170.8 billion of claims. Workers’ compensation insurance is an important way you can protect your business if you have employees.
Why Should I Get Tax Preparer Insurance?
As a tax preparer, you know the importance of protecting your business financially. But if you’re just starting your business and want to keep costs down, you may think you don’t need insurance now.
Consider this, then. Just one accident or mistake is enough to put your business under if you don’t have coverage. Even if you work at home or have just a couple of clients, you’re exposing your business to risk. Just imagine if a person gets injured while meeting with you or if an unhappy client sues you, even if you didn’t make a mistake.
No matter how safe you are, incidents can happen. Maybe you keep a tidy office and carefully shovel snow in your walkway—or maybe you meticulously review your work to avoid all mistakes. Even then, you’re still at risk for a costly accident, property loss, or error. And the costs can be expensive. Take a look at these averages:
- Reputational Harm — $50,000
- Client Injury or Damage — $30,000
- Client Slip and Fall — $20,000
Chances are, you probably don’t want to face a claim with those price tags. But if you have tax preparer coverage, your plan can likely cover some or all of the costs of a claim or lawsuit.
Think you won’t face a lawsuit? Think again. Our society is quick to sue, especially when it comes to businesses. You can get sued for claims of negligence or reputational harm from your tax services, even if you’ve done nothing wrong.
Plain and simple: you don’t want to put your business at risk. You’ve worked hard to build your livelihood. Protect it, along with your personal assets. At Simply Business, we can help you find affordable business insurance plans that cover your company. It’s easy to use our online tool to compare free quotes from top insurers across the nation. Get started by answering a few quick questions first.
Another bonus? We’ll provide you with a certificate of insurance (COI) that you can share with your clients and vendors. It can position you as credible and professional, which is especially important if you’re just starting out.
At Simply Business, we’re here to make getting insurance simple. Head to our quote tool to see for yourself how easy it is to get coverage!
What Does Tax Preparer Insurance Cost
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Answers to More Tax Preparers Insurance Coverage Questions
It depends. You may be required to have workers compensation if you have employees. But other policies, like professional liability and commercial general liability insurance may not be required. It all depends on where you’re located.
Even if your state doesn’t require you to carry insurance, it’s a good idea to get coverage. Your clients and vendors may ask for proof of insurance or require it in their contracts. Plus, if an incident ever happens, insurance could provide you with some financial protection.
Good news—in general, you can deduct the cost of business insurance from your tax returns. It’s just one more reason business insurance is worth the cost. We recommend speaking with an accountant if you have specific questions about your business deductions.
Every tax business is a little different. We recommend coverage based on:
- The size of your business
- Where your business is located
- Your annual revenue and payroll
- And more
You don’t need to necessarily know how much insurance you should get. After all, we’re here to make it easy. All you have to do is answer a few questions on our quote form, and we’ll help you find the right plan options, with the right amount of coverage.
Have more questions? No problem; our licensed insurance agents are ready to help!
At Simply Business, we want to make getting insurance as easy and fast as possible. To help, we ask that you have the following information on hand as you go through our quote tool:
- Annual revenue estimates
- Payroll estimates
- Information on any previous claims
It’s possible. Many states have different insurance requirements for tax preparers. This is especially relevant for workers compensation insurance.
Fortunately, our quote process makes it easy to see policies that work in your state. After you answer a few questions, we can show you insurance plans that meet your state’s requirements.
Your tax preparer coverage depends on what insurance plans you bundle. For full coverage, we recommend general liability, professional liability, and workers compensation if you have employees. Together, these plans can cover:
- Bodily injury
- Accidents and damages
- Employee injuries
- Negligence or alleged negligence
- And more
It really depends on the nature of your business. The cost of insurance can vary from one tax preparer’s business to another. In general, the cost is determined by:
- Payroll and revenue estimates
- Your business’s location
- What services you offer
- And more
If you’re wondering how much tax preparer insurance plan may cost you, take a look at our online quote tool. It takes just 10 minutes or less to get free quotes and compare plans.
Why Tax Preparers Choose Simply Business
Small business insurance is what we do. Whether it’s covering you for accidents and errors, meeting workers’ comp requirements, or financially protecting your business from the unexpected, we can help find the coverage you need for your business.
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your business in one form.
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I went online, looked around, and found Simply Business. The process was so seamless. I got my certificate within minutes. It was just phenomenal.
Karen
Owner of Tangaza Bath & Body Studio LLC
With Simply Business I know I can look at different carriers, but also see all my stuff in the same place… a lot of [insurance] providers don’t offer a variety of coverage, all in one place.
Jef
Owner of Bunker83 LLC
It wasn’t overwhelming to figure out what was covered and what wasn’t covered. And the cost was competitive.
Kim
Owner of Room to Breathe Professional Organizing
Feel confident in your choice.
We partner with a range of top-rated carriers and use smart technology to match you with policies that fit your specific business, your risks, and budget.
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We’ve Got More Helpful Information
*The displayed price for each product is a monthly estimate calculated from the 10th percentile of relevant policies sold by Simply Business (e.g., General Liability data is used for General Liability estimates). This estimate uses data from relevant policy sales between July–December 2025. Final price and payment terms, which may include an initial down payment, are subject to change based on your state, selected insurance provider, and specific business details.
† Limits may vary by state and nature of your business.
‡Displayed price is based on the lowest available coverage limit for Equipment and Small Tools policies.
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