Errors and omissions insurance for tax preparers
Counting the cost
You do a solid job of keeping your clients out of trouble. You’re professional, reliable and you stay on top of all the regulations and changes to the IRS code.
You take great care of your clients and over the work you do for them. But what happens when things go wrong? Who takes care of you?
Why does a tax preparer need errors and omissions insurance?
Say a client claims you failed to report a 1099 and they got audited by the IRS. Now, you know you asked for all their 1099s and you filed them on time.
It makes no difference. Because even if it was your client’s error, not yours, you’ll still have to pay for an attorney to defend you.
If you have errors and omissions insurance (E&O, for short) your legal defense, plus any damages you’re liable for, can be covered.
By the way, E&O’s also called professional liability insurance. But what’s in a name?
The real question is: can you afford to be without it?
What does our tax preparer E&O insurance cover?
- Errors and omissions – whether you made them or not
- Claims made against you – and compensation, if you’re liable
- Legal defense costs – plus hiring a lawyer, if you need one
- Claims filed against you for past work
- Worldwide coverage – as long as the claim’s filed in the United States, a U.S. territory or Canada
What other kinds of insurance does a tax preparer need?
General liability insurance – if you visit clients, or they come to your premises, you need this coverage. It protects you from claims made against you if someone gets hurt, or their property’s damaged and it’s your fault.
Business Personal Property – you can add this to your general liability policy. It’s coverage for your office equipment (including furniture) against loss or damage, even if you work from home. It can also cover your laptop, cell phone and tablet when you’re out and about visiting clients.
Cyber liability insurance – if you store clients’ data electronically, use email or run a website, you should think about getting this coverage. Because it’s not the cyber attack that’ll destroy your business and reputation, it’s the recovery cost.
Cyber insurance can take care of these expenses for you. Including your legal fees, fines, and the restoration of your systems and data - as well as your reputation.
But because every tax preparer’s insurance needs are different, we can tailor a package to suit you. And it’ll only take a minute or two.
Read what our customers say about us
I had many things to do to get inspection insurance. Matt guided me through the process making it easy for me. Friendly and prompt and respectful people and service. Thanks
Mr Welch. 06-14-2018
Quick and easy process. Information is clear and upfront.
Insurance Bee's service is great I told them what I needed and it was done no hassle or complication everything was explained to me in terms that i could understand. I highly recommend
Mrs Garcia. 04-16-2018