As trusted advisors to businesses and individuals alike, accounting firms are vital in ensuring financial stability and compliance. However, in an increasingly complex and litigious world, these firms face unique risks that can have serious consequences. That’s where insurance comes in. Whether you’re a sole practitioner or part of a larger firm, understanding the intricacies of insurance can help safeguard your reputation, financial well-being and peace of mind. 

What Kind of Insurance Do Accounting Firms Need? 

 

The specific insurance needs of an accounting firm may vary based on factors such as the size of the firm, the services offered, the number of employees and the location of the business. The following are some common types of insurance accounting firms typically consider: 

• Professional liability insurance is one of the most critical insurance types for accounting firms. It generally provides coverage in case the firm is accused of negligence, errors, omissions, or failures in providing accurate financial advice or services to clients. This insurance may help cover legal fees, settlements and judgments.
• General liability insurance offers coverage for third-party claims of bodily injury, property damage or personal injury that may occur on the firm’s premises or as a result of its operations. It may help provide protection against claims not related to professional services.
• Cyber liability insurance may help cover the costs associated with cyberattacks, data breaches and information theft.
• Business property insurance may help cover the firm’s physical assets, including office space, furniture, computers and other equipment, against damage or loss due to a covered event.
• Workers’ compensation insurance helps provide coverage for medical expenses and lost wages if an employee is injured or becomes ill while performing job-related tasks.
• Commercial auto insurance can cover damages and liability resulting from accidents involving company-owned vehicles.

 

How Much Does Insurance for Accounting Firms Cost? 

 

The cost of insurance for accounting firms can vary based on a number of factors, such as the size of the firm, the number of employees, the location of the business, the firm’s claims history, and the specific coverage limits and deductibles chosen. Additionally, insurance costs can change over time due to market trends, industry regulations and other factors. Contact an insurance specialist at Stewart Kriese Insurance Agency Inc. today to get a quote for coverage.