Tax preparers prepare tax returns for individuals and small businesses – which is no easy task with a federal tax code that takes 72,000 pages to explain. As a tax preparer, you have a huge responsibility to your clients to prepare and submit their tax returns correctly, and on time. Failure to do so could cost your clients, and in turn, you. To protect your business, and yourself, a comprehensive portfolio made up of a combination of business insurance policies is an absolute must-have.
Fortunately, our independent insurance agents are here to eliminate the hassle of searching on your own by walking you through a hand-picked selection of top insurance policies to cover both your business and your employees. But first, let’s talk more about the protection you need and why you need it.
Tax preparers should work closely with an independent insurance agent to identify their exposures and determine the types of business insurance that they need to fill the gaps. Start by considering the following coverages:
You may also want to consider endorsements to your business owners policy or additional standalone policies that provide the following coverages:
If you work out of your home full-time or even just part time, you may be uninsured or underinsured if you think your homeowners insurance policy has you covered.
A typical homeowners insurance policy limits coverage for office equipment to around $2,500 – not nearly enough to replace a computer, printer, phones, desk, scanner, office plants, or other equipment you need for tax preparation.
Your homeowners policy doesn’t cover business liability, loss or damage of business records, and damage caused by business interruption.
If you have a home office, you have several options in order to make sure you have appropriate coverage:
The most important coverage you need as a tax preparer is professional liability insurance, or tax preparers errors and omissions (E&O) insurance. Thousands of lawsuits are filed against tax preparers every year. Your E&O policy protects you if you’re sued for mistakes in your work. Consider these examples:
These types of claims are not typically covered under your general liability insurance. You might also be required to have this type of insurance by your clients or certain associations that you want to join.
Tax preparers E&O insurance provides coverage for costs related to your errors (e.g., IRS penalties and interest due to your mistakes) as well as costs related to your defense in a lawsuit (court costs, attorney fees, settlements and judgments) up to your policy limits.
Tax preparers professional liability insurance is generally affordable and absolutely invaluable in protecting you from financial devastation. Your premium is based on several factors including, but not limited to, the following:
Remember to update your tax preparers professional liability policy as your business grows and expands over time and you assume greater liability exposures.
Our agents will review your needs and help you evaluate which tax preparer insurance coverages makes the most sense. They'll also compare policies and quotes from multiple insurance companies to make sure you have the best protection out there. They'll hook you up — in a comprehensive and affordable way.
Independent insurance agents excel at matching the most appropriate policy to the business in need. Shopping around for insurance policies can be tricky, confusing, and time-consuming, and an independent insurance agent's role is to simplify the process.
They’re also there to help make sure you get the absolute best deal, and the one that meets your unique needs. They shop and compare insurance quotes for you, and they'll break down all the jargon so that you understand exactly what you're getting.