CPA & Accountant Insurance in Florida: 4 Key Coverages to Consider

CPAs, accountants, and tax professionals handle sensitive financial information and provide services that can have significant financial consequences for their clients. An error on a tax return, a client injury at the office, or a cyberattack involving confidential records can create unexpected costs for an accounting business.

For Florida accounting professionals, having the right insurance can help protect the business from several of these risks. Here are four important coverages for CPAs, accountants, and accounting firms to consider.

1. Professional Liability Insurance

Professional liability insurance, also known as errors and omissions (E&O) insurance, is particularly important for businesses that provide professional services.

If a client or third party claims that an accountant made an error, omission, or negligent mistake that caused financial harm, the business could face a lawsuit and significant legal expenses.

Potential examples include:

An alleged error on a tax return
A missed filing deadline
An accounting error
An alleged failure to provide agreed-upon services
Financial losses that a client attributes to professional advice

Professional liability insurance is designed to provide coverage for certain claims arising from professional services, subject to the policy’s terms, conditions, exclusions, and limits.

For many accounting professionals, this is one of the most important coverages to evaluate.

2. General Liability Insurance

Professional liability isn’t designed to cover every type of lawsuit an accounting business might face.

General liability insurance addresses a different category of risks, including certain claims involving bodily injury, property damage, and other third-party liabilities.

For example, a client visiting an accounting office could slip and suffer an injury. A business could also face a claim involving accidental damage to someone else’s property.

General liability coverage can also be required by landlords, clients, or other third parties as part of a business agreement.

Even a small accounting practice can benefit from having protection against these everyday business risks.

3. Workers’ Compensation Insurance

As an accounting firm grows and hires employees, workers’ compensation becomes another important consideration.

Workers’ compensation can provide benefits for employees who suffer covered work-related injuries or illnesses. It can also include Employers Liability Insurance, which provides another layer of protection for certain employer-related claims.

Florida workers’ compensation requirements depend on factors such as the type of business and number of employees. Business owners should make sure they understand the requirements that apply to their particular situation.

For accounting firms with employees, reviewing workers’ compensation coverage should be part of the firm’s overall insurance planning.

4. Cyber Liability Insurance

Accounting firms are trusted with some of their clients’ most sensitive information.

Tax returns, Social Security numbers, financial statements, bank information, payroll records, and other confidential data can make accounting businesses attractive targets for cybercriminals.

A cyber incident could result from:

Phishing or social engineering
Ransomware
Unauthorized access to computer systems
A stolen computer or other device
Malware
A data breach

Cyber liability insurance can provide coverage for certain costs associated with covered cyber incidents and data breaches, depending on the policy.

For an accounting firm that stores or transmits sensitive client information electronically, cyber liability deserves serious consideration.

What Insurance Does Your Accounting Business Need?

There isn’t one insurance package that is appropriate for every CPA or accounting firm.

A solo CPA working from a home office may have different exposures than a growing accounting firm with employees, a commercial office, and a large client base.

When reviewing your insurance, consider factors such as:

The professional services you provide
Whether you have employees
Whether clients visit your office
The amount of sensitive client information you maintain
Whether you work with businesses, individuals, or both
Your contractual insurance requirements
The size and location of your business

Your insurance needs can also change as your firm grows. Hiring employees, expanding your services, moving into a larger office, or taking on new types of clients can all affect your business’s risk profile.

Review Your Coverage Before You Need It

Insurance is designed to help protect your business from unexpected events. Waiting until after a claim, lawsuit, workplace injury, or cyber incident occurs is too late to address a coverage gap.

Florida CPAs, accountants, bookkeepers, and tax professionals should periodically review their insurance to make sure their coverage continues to reflect the way their business operates.