Professional liability insurance for tax preparers helps protect your tax preparation business or consultancy from risks not typically covered by general commercial liability policies. Just as medical practitioners need malpractice insurance tailored to their risks, you need professional liability coverage for tax preparers tailored to yours. Tax preparers professional liability insurance is an essential part of your comprehensive business insurance portfolio, whether you work from an office or out of your home. If you already have a policy, you should review it periodically to make sure it is up to date. As your tax preparation firm expands, it’s a wise idea to increase your coverage limits and reduce your exposure to claims.
You can get quotes for tax preparers professional liability insurance using the form shown at the top of this page.
Who Needs Professional Liability Insurance for Tax Preparers?
You need tax preparers professional liability insurance if:
Your clients require it as a condition of doing business with you
Your professional association requires it as a condition of membership
You or your employees provide advice or services that could result in a lawsuit or financial loss for your client due to any alleged error, omission or wrong-doing on your part
You have personal assets that could be jeopardized if a client sued you
What Professional Liability Risks Do Tax Preparers Face?
The number of tax audits have been rising steadily over the past few years. Even the most careful tax preparer can make a miscalculation or omit data. Add to that constantly changing tax laws at every level. Your clients are paying for your expertise. Fail to stay abreast of the most current, accurate information and you’re likely to be on the A-list of advisers to sue when a client suffers financial harm. Every year, thousands of lawsuits are filed in the U.S. against tax preparers. Regardless of whether you’re at fault, defending yourself against even a frivolous suit could mean financial disaster for you and your tax preparation business. Without professional liability insurance, you could be forced to sell off your personal assets to repay your client. You’d also have to pay for your own defense and any costs associated with a judgment against you.
What Does Professional Liability for Tax Preparers Cover?
Your professional liability insurance covers financial losses and the costs and damages resulting from law suits up to the limit of your policy. It is a variation of Errors and Omissions Insurance (also called E&O) designed specifically for tax preparers and tax preparation firms. It protects your business and personal assets from claims of wrongful acts (errors, omissions or negligence) committed by you or an employee while performing professional duties. It also covers the losses that happen to others in the exercise of your professional judgment, such as IRS penalties and interest for a miscalculated return. Professional liability insurance is a supplement to (and does not replace) Commercial Liability Insurance, Employment Practices Liability Insurance and Directors and Officers Insurance (if your business requires it).
Affordable Quotes for Tax Preparers Professional Liability Insurance
Policies for professional liability insurance for tax preparers and tax preparation firms are affordably priced. Quotes will depend on the size and type of your business. Your previous claims history and loss experience, staff turnover, financial results and operating characteristics can also affect your rate.
It pays to shop for specialized E&O insurance for you tax preparation business. You can get competitive quotes from one or more professional liability insurance companies by completing the form at the top of this page. If you do not wish to purchase coverage now, please leave your policy expiration date on the form provided. When your expiration date is closer, you will be contacted so that you can comparison shop for tax preparers professional liability insurance at that time.
Protect your business from exposure to risk. Get quotes for professional liability insurance now.