What Kind of Insurance Do I Need for an Accounting Business?
- Nate Jones, CPCU, ARM, CLCS, AU
- 4 days ago
- 3 min read
Updated: 4 hours ago
Starting or running an accounting firm comes with unique risks—whether you're a solo CPA, a small bookkeeping team, or a growing financial advisory practice. From client data breaches to professional errors, the right insurance coverage can protect your business from costly liabilities and disruptions.
At Wexford Insurance, we specialize in helping small business owners—including accounting professionals—find tailored insurance programs that fit their needs. In this guide, we’ll break down the essential types of accounting business insurance and help you understand what coverage is right for your firm.
Why Insurance Matters for Accounting Firms
Accounting professionals handle sensitive financial data, provide expert advice, and often represent clients before tax authorities. A single mistake or cyber incident can lead to lawsuits, regulatory penalties, or reputational damage. That’s why having the right small business insurance for accounting firms is not just smart—it’s essential.
Key Insurance Policies for Accounting Businesses
Here are the core types of insurance coverage every accounting firm should consider:
Also known as E&O insurance, this is the most critical coverage for accountants and CPAs. It protects your firm if a client claims financial loss due to your professional advice, errors, or omissions. Whether it's a tax filing mistake or investment misguidance, this policy helps cover legal fees, settlements, and judgments.
This covers third-party claims of bodily injury, property damage, or personal injury that occur at your office or during business operations. For example, if a client slips and falls in your lobby, general liability insurance helps cover medical costs and legal expenses.
If you own or lease office space, this policy protects your physical assets—like furniture, computers, and records—from fire, theft, vandalism, or natural disasters. It’s especially important for firms with expensive equipment or client files stored onsite.
If you have employees, most states require workers’ comp. It covers medical expenses and lost wages if an employee gets injured or sick due to work-related activities. Even in low-risk office environments, this coverage is legally required and financially protective.
If your firm owns vehicles used for business—such as visiting clients or attending conferences—you’ll need commercial auto insurance. It covers accidents, liability, and vehicle damage beyond what personal auto policies allow.
Accounting firms rely on specialized equipment like servers, computers, and secure filing systems. Equipment insurance helps cover repair or replacement costs due to damage, theft, or breakdowns—keeping your operations running smoothly.
Insurance Tips for Accounting Professionals
Review your client contracts: Some may require proof of professional liability or general liability insurance.
Update your coverage annually: As your firm grows, so do your risks. Make sure your insurance reflects your current operations.
Bundle policies for savings: Combining multiple coverages into a business owner’s policy (BOP) can reduce costs and simplify management.
External Resources for Accounting Professionals
Efficiency Partner for Accounting Professionals
If your accounting business serves contractors or construction clients, Contractor Back Office can help you deliver faster, more organized service. We offer invoicing, bookkeeping, and CRM solutions tailored specifically for contractors—making your workflow smoother and your clients more satisfied.
📌 Learn more about Contractor Back Office and how it can support your accounting business.
Get Expert Help from Wexford Insurance
Choosing the right insurance for your accounting business doesn’t have to be complicated. At Wexford Insurance, we understand the unique risks accounting professionals face and can help you build a customized insurance program that protects your firm and your future.
Contact Wexford Insurance today.
