Bookkeepers handle important financial information for businesses and clients. Their work can involve recording transactions, reconciling accounts, preparing financial reports, maintaining records, and supporting other accounting functions.
Because clients rely on the accuracy of this work, bookkeeping businesses can face professional liability risks in addition to the everyday risks faced by other small businesses.
What Is Professional Liability Insurance?
Professional Liability insurance is designed to help protect eligible businesses against certain claims arising from professional services, errors, omissions, or alleged negligence.
For a bookkeeping business, a client could potentially claim that an error or omission in the services provided resulted in a financial loss.
Professional Liability coverage may help address certain covered claims, subject to the policy’s terms, conditions, exclusions, and limits.
Do Bookkeepers Need Professional Liability Insurance?
There is no single insurance policy that every bookkeeper needs. Insurance requirements and appropriate coverage can depend on the business’s operations, clients, services, location, and other factors.
However, professional liability is an important coverage consideration for eligible bookkeepers because their primary business activity involves providing professional services.
A bookkeeper may also need other types of insurance depending on how the business operates.
Other Insurance Coverage for Bookkeepers
General Liability
General Liability can help protect your bookkeeping business against certain third-party claims involving bodily injury, property damage, and personal and advertising injury.
Even businesses that primarily operate from an office or remotely can have third-party liability exposures.
Cyber Coverage
Bookkeepers often handle sensitive financial and business information electronically.
Cyber Coverage can provide protection for certain covered cyber incidents, including certain expenses and liabilities associated with data breaches, cyberattacks, and other covered events.
Business Personal Property
A bookkeeping business may own computers, office furniture, equipment, and other property used to operate the business.
Business Personal Property coverage can help protect eligible business property against covered causes of loss.
Business Income
A covered loss could temporarily prevent a bookkeeping business from operating normally.
Business Income coverage may help replace certain lost income and cover certain continuing expenses following a covered interruption, subject to the policy terms and limits.
Additional Coverage Options
Depending on the business and eligibility, additional coverage options may include:
- Employment Practices Liability Insurance (EPLI)
- Commercial Umbrella Liability
- Workers’ Compensation
- Equipment Breakdown
- Other available coverage enhancements
Not every bookkeeping business needs every type of coverage. The appropriate combination depends on the business’s specific operations and exposures.
What Risks Do Bookkeepers Face?
Bookkeeping businesses can face a variety of professional and operational risks, including:
- Alleged errors in financial records
- Missed or incorrect information
- Claims involving professional services
- Cybersecurity incidents
- Loss or damage to business property
- Client or visitor injuries
- Business interruptions
- Employee-related claims
The specific risks depend on the services provided and how the business operates.
Does Working Remotely Change Insurance Needs?
Many bookkeepers operate from home or provide services remotely.
Working remotely can change the types of risks a business faces, but it does not necessarily eliminate the need for business insurance.
Bookkeepers may still have professional liability exposures, business property, cyber risks, client information, and other business-related concerns.
Homeowners or renters insurance should not automatically be assumed to provide adequate coverage for business activities.
Choosing Insurance for Your Bookkeeping Business
When exploring insurance options, consider factors such as:
- Services provided
- Annual revenue
- Number of clients
- Whether services are provided remotely
- Employees or independent contractors
- Type of client information handled
- Business property and equipment
- Office location
- Other professional services provided
An insurance professional can help identify coverage options based on your business and eligibility.
Protect Your Florida Bookkeeping Business
Bookkeepers provide important professional services that clients rely on to maintain accurate financial records. Insurance can help eligible bookkeeping businesses manage certain professional and operational risks.
Nieves Insurance Group helps eligible Florida bookkeepers and bookkeeping businesses explore insurance options based on their services, operations, and specific needs.
Ready to explore coverage for your bookkeeping business?
Start your quote online or contact Nieves Insurance Group to discuss your insurance options.
