CPA Insurance for Accountants: Cost, Coverage & Providers

Cody Cromwell
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How Bookkeeper, Accountant, and CPA Insurance Works

In this post, we’re going to answer the following questions about bookkeeper, accountant, and CPA insurance:

  • What is bookkeeper, accountant, and CPA insurance?
  • How much does CPA insurance cost to purchase?
  • Does CPA insurance offer adequate coverage?
  • What are the different types of bookkeeper, accountant, and CPA insurance?
  • How does bookkeeper, accountant, and CPA insurance work?
  • What coverage options are available in CPA insurance?
  • How do I compare CPA insurance with other insurance options?
  • What are the most common policies and medical conditions?
  • What personal information is required to purchase CPA insurance?
  • What is bookkeeper, accountant, and CPA insurance?

Bookkeeper, accountant, and CPA insurance is formal insurance that you’ll need to purchase once you decide to launch your business. This insurance involves the protection of your business, its clients, and its assets.

Before you can acquire bookkeeper, accountant, and CPA insurance, you’ll need to build your bookkeeping and CPA credentials. However, once you’ve done that, you can purchase the insurance that you need.

Bookkeeper, Accountant, and CPA Insurance Providers

Chances are that when you’re starting a new business or planning a new project, you’re considering how to purchase insurance. Different business types are covered by different insurance companies, and insurance policies can vary based on the type of coverage and how much coverage you need.

Although buyer beware comes in louder than ever when it comes to insurance, keep this in mind: If you’re in business, you’re going to have to pay for insurance sooner, or later. Even if your business is a state of the art web design, marketing, and development firm that people name their children after (we’re exaggerating) there’s a good chance that your first and foremost business expense is going to be insurance.

While there are no guarantees that insurance prices won’t go up, there are some things you can do to minimize your costs. Here’s a closer look at three different types of CPA insurance (professional liability, errors and omissions and business property insurance). While there are many insurance providers…

Pet Insurance Providers

And some other types of insurance, we’re going to focus specifically on the CPA insurance providers.

The Hartford

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The chartered life Underwriter is a risk management tool for professional services firms. These insurers, as they’re known, provide insurance coverage for the risks professional practices face, including law firms, accounting firms, consulting firms, banks, real estate and insurance brokerage institutions, and construction and engineering companies. These insurers offer a variety of financial products, including single-premium and self-insured options, which allow firms to choose the coverage that matches their needs.

But just like CPAs, professional service firms aren’t financial engineering by nature. They’re risk averse: Despite the nature of their business, they don’t like uncertainty. In the case of construction, for instance, insurance is intended to guard against breakdowns and variations in a project’s timeline. Insurance also guards against losses when vendors or subcontractors are unable to perform their services. Professional practices take great pains to minimize risks, and insurance allows them to do so.


We provide financial and professional liability insurance for independent accountants and bookkeepers to protect the firm.

We also provide Cyber insurance in case of data loss or damage.

To find out more information on our plans and quotes, please email:

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If you’re a travel agency owner then protecting your business from unforeseen risks is important; a single lost, stolen or damaged bag could mean that you have no bags to transport your client’s belongings. So keeping up to date with your travel agency insurance is an important part of your day-to-day operations of your business.

Plenty of small to medium sized businesses take on an accountant role, which often means that they play a key role in company administration and bookkeeping.

Accountancy is a popular career choice for students, and so they are usually keen to get into the CPA (Certified Public Accounting) business.

Travel insurance coverage also gives the accountant a great level of protection should anything occur whilst they are on the road.

Below is an overview of this type of insurance.


CyberPolicy insurance pays for damage to or loss of sensitive information resulting from computer viruses, hackers and computer crimes. The coverage can be purchased by accountants and auditors in order to protect them and their clients. Identity theft insurance covers costs consumers pay for cleaning up their credit and repairing the damage done to their account.

Signature planning is the latest in a long line of high-tech protections designed to make it tougher for criminals to cash checks and create fraudulent credit card, rent and utility payment histories. Signature planning uses an electronic signature and accompanying security codes to verify the person signing a check or credit card bill. Signature planning is often paired with identity theft insurance.

Delinquent debt buyers have raised concerns with federal regulators that the growing debt collection industry is prone to waste and to fraudulent collection practices that prey on consumers’ inability to pay. Such concerns are heightened when debt collection companies fail to comply with debt collectors’ internal controls.

A study conducted for the National Consumer Law Center found evidence of widespread misconduct by debt collectors, with problems ranging from collections practices that were illegal or unfair to collectors who made false or misleading statements to consumers. For instance, debt collectors sometimes misstated the amount of money consumers owed or sent misleading information with the intent of causing consumers to believe they were in actual default.

American Institute of Certified Public Accountants (AICPA)

American Institute of Certified Public Accountants (AICPA) is an association of certified public accountants (CPAs) in North America and is known for being the largest accounting and auditing body.

AICPA is the author of three of the most widely accepted accounting standards in the U.S., including the Statements on Auditing Standards. The AICPA also composes a body of ethical standards for professional accountants. Twenty-seven of these standards are contained in the Code of Professional Conduct. These standards assist accountants in regulating their conduct; to maintain the public’s trust in the profession; and to take care of one another.

AICPA promotes sound ethics and professional standards among its members through several means. One of these is through several educational seminars and other educational workshops.

You can find information on these seminars by searching for terms such as Securities Regulation and Business Start-ups. With the increasing popularity of CPA firms in the U.S., AICPA also provides a directory of CPA firms. The code of ethics also requires CPAs to publicize the availability of inactive non-CPA examiners. You can easily find this information on the AICPA website.

AICPA also conducts needs assessment studies that involve consultations to help the profession address current and future needs.

Types of CPA Insurance for Accountants

CPA insurance is designed to protect CPAs, who are often considered risk takers when it comes to their practices.

The Association of International Certified Professional Accountants (AICPA) considers CPAs to be at greater risk of physical damage and property loss than other accountants (not to mention liability issues). The purpose of CPA insurance is to cover this risk and provide coverage for any business interruption losses due to claims of copyright, breach of contract and libel.

The CPA insurance market is very competitive – there are more than a dozen companies in the US alone which offer this insurance ” and as a result the CPA insurance premiums tend to vary wildly. In the chart below, you’ll see three examples – two premiums from the same company and one from a high-ranking competitor. You’ll notice that the CPA insurance premium from the first company is almost the same as that from the competitor (and pretty much the same as the second premium). However, the second premium is more than two times the first, thus demonstrating the advantage of diversity. When choosing a CPA insurance provider, take the time to research their different CPA insurance offerings and to make sure that you’re getting the best rate available.

Professional Liability Insurance

Commercial General Liability Insurance


Typically, your CPA or enrolled agent insurance raises your limits of liability to some extent. But it doesn’t raise the limit of liability you need to have all business transactions protected.

That’s where CGL insurance comes in – that’s your excess liability. If you’ve opted out of the large limits of liability your CPA or enrolled agent policy offers, then you’ll likely opt for the GAP coverage in this layer of insurance.

Your GAP coverage is also known as umbrella or excess comprehensive coverage. So your umbrella coverage will pay for binding trades and any court judgments against you in excess of your CPA or enrolled agent liability limits. The level of these GAP claims will depend on the amount of coverage you choose. Further, you can also add coverage for bodily injury and/or property damage for your employees. This comes in handy if business goes wrong and your employees are injured.

Workers’ Compensation Insurance

Commercial Property

Many CPAs offer a limited form of general liability to a small number of companies or individuals. The insurance generally provides for acts of tort, fire, lightning damage, theft, vandalism, and liability, and it usually does not provide coverage for any other types of events or problems. Furthermore, insurance of this type is typically very fairly priced.

A typical commercial property accountant's insurance policy covers damage to or destruction of any property owned by the insured, even though it is not the owner's primary line of business. The policy also covers any of the insured's tenants, including the insured's office and warehouse space, if located on property owned by the insured. Of course, the policy limits much of the coverage by the occurrence of various very specific events. For example, an occurrence of lightning or flood protection is acceptable. However, an occurrence of "burst pipe" is not. Fortunately, a burst pipe occurs very rarely and usually not to the same extent as it would in a residential home.

Cyber Insurance

As far as insurance coverage is concerned, the type of coverage you’ll need for your business will depend on the types of services you’re providing. For example, if you own a digital firm, you’ll likely need cyber insurance for your business. If you’re an accounting firm, your insurance provider may cover your office buildings and equipment. In this article, we’ll discuss cyber insurance for accountants.

In today’s marketplace, cybertruths have become a part of everyday life. Cyber theft is one of the most common threats these days. And cyber theft can be committed by hackers who break in through the internet or hacking fraudsters who hack through the voice or postal system. So here’s the question, what can you do to protect yourself against cyber theft? The answer is cyber insurance.

Employment Practices Liability Insurance (EPLI)

Commercial Umbrella Insurance

A commercial umbrella policy is an insurance policy, specifically a liability insurance policy, that provides coverage above and beyond the primary coverage of a business’s own commercial general liability (CGL) policy.

For example, an umbrella policy would provide greater protection against a costly lawsuit or lawsuit filed by a claim in which the primary policy of the business is insufficient to cover all damages that may be incurred.

Since only a small minority of businesses desire added liability protection, the interface between umbrella and primary CGL insurance is primarily a matter of cost.

Umbrella Insurance Compared to an Add-on

Umbrella insurance is most commonly seen as an add-on to an existing primary insurance policy; however, a small number of companies now offer primary commercial umbrella insurance policies. In the future, it is likely that there will be a greater use of primary commercial umbrella insurance programs.

The primary benefit of an umbrella policy is in its lower price. Most of the claims made by umbrella insurance policies are classified as extra-contractual or extra-at-fault claims, which means that the company was bound by the terms of the underlying policy. Therefore, in most cases, the damage recovered from an umbrella insurance company is less than the damage that would be recovered in the case of an extra-contractual claim.

As an example, assume that a business has bought its primary CGL policy from a third-party insurance provider.

Insurance for Accountants Costs

Not only are you insured against specific risks, but you are also insured against specific clients. However, CPA insurance companies will often offer a discount on the premium if you specifically exclude specific clients from the scope of coverage.

Only specific insurance references are stated in the price list.

A Client Insurance Limit Is a Common Escalation Option in Some Cases

Another type of coverage available for the professionals is contingent coverage. Essentially, contingent coverage is a type of professional liability coverage for organizations.

There are several important considerations you should take into account when looking for this form of insurance.

What are the key benefits?

What does the policy cover?

What are the limits of coverage?

What is the cost of insurance?

How much annual coverage should you buy?

How to Apply for Accountant Insurance

Accountants are in great demand with the bean counters in corporate offices and small businesses. But if you’re a CPA, you have to be prepared for the worst. You may be working for a family or corporation with deep pockets, but you never know when a lawsuit, audit, or client dispute may end up costing you.

The Human Resource (HR) department might not offer you the best health insurance plan or the most paid vacation but you may have the best insurance policy that serves your profession. If your work place does not even offer you insurance either by itself or through a third party company, seeking out a CPA insurance is necessary.

But before you choose a CPA insurance, you have to check all the details and requirements. The first and foremost is that the insurance policy must include medical, disability, and workman’s compensation. You should check with your insurance agent for exclusions or make sure that the policy covers more than what you need.

The next point to bring up is the cost of the policy. It is necessary to check for a comprehensive policy that covers injury or illness, property damage, professional liability, as well as any equipment problems. There should be a medical maximum that pays out 75% of the medical bill. In case the cost of medical treatment is more than the amount covered, you should pay as much as you can afford.

Gather Information About Your Practice

Every accounting firm has a range of services, so pros work with multiple people all day every day, and more demand is placed on you as an accountant. Just as you take some time to assess your business’s health when it’s new, you should also decide what kind of risk coverage to seek in its early stages.

By learning about the different kinds of services you offer and how you are able to secure them, you can uncover ways to make your business more secure.

Work With Providers That Know Accountant Insurance

If you’ve ever filed a claim – file a claim. Should you not have coverage, you’ll want to consider purchasing it. For professional accountants, this will help you ensure that you have all the necessary insurance in place. Yet, choosing a firm that has CPA insurance for accountants can be a daunting task. But there is help for you. The magic of the internet and the CPA insurance for accountants industry means that you can find providers that specialize in CPA insurance.

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Accountant Insurance Frequently Asked Questions (FAQs)

Accountant insurance is necessary to protect an accountants’ (bookkeeper, CPA, Certified Public Accountant) both personal and professional assets for during the period they are on the clock.

Generally there are three categories:

  • Professional Accountant Insurance
  • Personal Accountant Insurance

Does a bookkeeper need insurance?

The bookkeeper, accountant or CPA, is one of the most important professionals in a business environment. They are responsible for the accuracy of the financial records, accounting, tax and financial planning as well as various other aspects that keep a business from running into disaster.

However, if a bookkeeper is employed by a business that has a client liability insurance, then he is protected and covered for any potential damages that may arise from the outcome of his work. However, if the bookkeeper is working as an Independent Certified Public Accountant (CPA) and is assigned to the clients’ finances, he is not afforded this type of protection, and he is not insured against any liability. This is where the CPA insurance becomes an important asset.

The CPA license is a universally recognized license recognized by regulatory authorities around the world. This license permits the CPA, during his practice, to represent the financial interests of his clients. The CPA automatically represents the business owner or company, as he is working with the business owner. The CPA is responsible for the accuracy and integrity of the financial records.

Therefore, having CPA insurance is important to protect the bookkeeper and to indemnify his disability and liability.

Why do you need E&O insurance?

Regularly audited, like an accounting firm needs to be and can provide: E&O insurance is a type of liability insurance provided by an E&O insurer. E & O stands for Errors and Omissions, the two key liabilities for accountants and their clients.

There are a couple of reasons why accountants need to have E&O insurance. First off, if an accountant makes mistakes, no one’s going to pay for them. This makes it critical to have E&O insurance to protect the accountants and their business. E&O coverage can also make the accounting profession more appealing by eliminating the worry that comes from clients having to pay for mistakes.

What kind of insurance does a CPA need?

The burden of proof for a personal injury or an accidental death lies with your employer; you must prove you are eligible to file for benefits, that you participated in the activity that caused the injury, and that it was the only cause of the injury. In most cases, the costs can escalate and snowball if you’re injured and unable to work. If you’re not prepared for this time, you may have to file a claim against your employer’s insurance plan. If you self employed, the costs can also have a significant impact on your livelihood and family.

So if you’re looking to cover these costs, you must consider getting insurance coverage for medical expenses, the uninsured and underinsured benefits, and even income replacement. If you were looking for a place to cut costs, you will find that there are many options available, but much of this coverage comes with limited deductibles and co-pays.

Consider an umbrella insurance policy to cover you against large medical expenses if you’re injured (along with the most basic coverage).

Bottom Line

CPA insurance for accountants can offer a lot of benefits when it comes to peace of mind, financial stability and professional integrity. The tricky part is knowing which CPA insurance for accountants is right for you.

Cost is one major consideration – and it’s a factor that’s often overlooked by those unfamiliar with the process and the risks involved. And since market conditions change, the opportunities to obtain insurance can mean buying the wrong plan.

To help you cut through the confusion, FDD has made it easy to compare CPA insurance for accountants and then uncover the best coverage for you, your firms and your clients. Get started today.