General Liability Insurance for Tax Preparers
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General Liability Insurance for Tax Preparers

While it's probably unlikely that you'll ever face a claim for bodily injury or property damage, these types of lawsuits can be incredibly expensive. That's why general liability insurance is always a good investment for any small business. It pays for legal defense costs, bond premiums, any settlements you might have to pay, and even income you lose while fighting your case in court.

While tax preparers are typically at low risk when it comes to general liability claims, some clients may require you to carry general liability insurance just in case. Don't take it personally, as some companies require such coverage of all their contractors, from maintenance workers to tax preparers to consultants.

What You Need to Know

Whether your clients require it or not, general liability coverage is very popular with tax preparers because they just don't want to take the risk of fighting a lawsuit that could potentially be costly enough to put them out of business.

The good news is that as a professional tax preparer, you may have a low-enough risk that you could be eligible to get covered through a discounted package policy called a BOP. Learn whether you qualify.

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General Liability
Insurance Tips

  • How do you know how much general liability coverage is adequate to protect your tax preparation business? Business Insurance Now can provide a free risk evaluation to determine your potential liability.
  • If you occasionally use contract help, those contractors may or may not be covered by your general liability policy. If you're not sure, read the fine print or ask your agent for clarification.
  • Errors or omissions you may make in providing your professional services are not covered by general liability insurance. Those fall under a different type of coverage: professional liability insurance. Ask your Business Insurance Now agent for details.