Accounting Firms and CPAs need specific business insurance to protect against the unique risks of their industry. General liability for Accounting Firms and CPAs averages $720 per year. Here is exactly what coverage you need.
What Insurance Do Accounting Firms and CPAs Need
CPAs and accounting firms face significant professional liability exposure from tax preparation errors and audit failures. The AICPA offers group professional liability programs often more cost-effective than individual policies.
Required coverage for Accounting Firms and CPAs:
- Professional Liability
- General Liability
- Cyber Liability
Optional but strongly recommended:
- Employment Practices Liability
- Commercial Crime
How Much Does Accounting Firms and CPAs Insurance Cost
| Coverage Type | Typical Annual Cost | What It Covers |
|---|---|---|
| General Liability | $720/year | Third-party bodily injury and property damage claims |
| Business Owner's Policy | $1,200/year | GL plus commercial property bundled at a discount |
| Workers Compensation | $500–$5,000+ per employee | Employee injuries and occupational illness |
| Commercial Auto | $1,200–$3,600/year per vehicle | Company vehicles used for business purposes |
How to Get the Best Accounting Firms and CPAs Insurance Rate
- Compare quotes from at least 3 business insurance providers — rates vary significantly for accounting firms and cpas.
- Bundle coverages into a Business Owner's Policy where applicable for 10–25% savings.
- Implement documented safety procedures and training — insurers reward businesses with strong safety records.
- Maintain a clean claims history — even one significant claim can increase premiums 30–50% at renewal.
- Work with an independent insurance agent who specializes in accounting firms and cpas since they access markets that specialize in your trade.
- Review and update coverage annually — over-insurance and under-insurance both cost you money.
Get certificates of insurance from all subcontractors and require them to add you as an additional insured on their policy. Subcontractors without proper insurance can create uninsured liability under your general liability policy.