Accounting Firm Insurance2026 Cost Guide for CPAs, Bookkeepers & Tax Preparers

Covers financial losses your clients suffer from your professional errors, omissions, or negligent advice. A missed deduction that triggers an IRS audit, a bookkeeping error that causes a client to overpay taxes, an incorrect financial statement used in a loan application — all E&O claims. Defense costs are covered even if the claim is frivolous. This is the #1 coverage for any accounting professional.

Accounting firms hold Social Security numbers, bank accounts, tax IDs, and financial records for every client. A ransomware attack or phishing breach can expose dozens or hundreds of clients simultaneously. Cyber insurance covers: breach notification costs, credit monitoring for affected clients, regulatory fines, data recovery, business interruption during system downtime, and cyber extortion payments. Average cost of a small firm breach: $120,000–$400,000.

Covers bodily injury and property damage to third parties at your office. Client slips on your wet floor — GL pays. You accidentally damage a client's laptop during a meeting — GL pays. Most commercial leases and professional association memberships require it. GL does not cover professional errors — that's E&O.

Bundles GL + commercial property into one affordable policy. Covers your office furniture, computers, servers, and equipment if damaged by fire, theft, or water. Also covers business interruption if your office is unusable. Most solo and small firms should start here rather than buying GL and property separately — it's 20-30% cheaper.

Required in most states once you have 1+ employees (some states exempt sole proprietors). Accounting office work has low injury rates but carpal tunnel, back injuries from desk work, and slip-and-falls are real claims. Workers comp rates for accounting firms are typically the lowest of any commercial class.