Business Insurance Requirements for Accountants in California

California is recognized as a leader in business and an economic powerhouse on the global stage. But with opportunity comes risks, and accountants in California should consider business insurance to protect their firm and their customers.

California law only requires accountants to carry workers’ compensation insurance if they have employees. However, commercial landlords often include general liability insurance and property insurance requirements in their leases. Client contracts might also have insurance requirements, including professional liability insurance (also called errors and omissions insurance), which can cover losses from an accounting error.

Insureon makes shopping for insurance easy with industry-leading technology that gathers quotes from top U.S. carriers to fit your business needs. Read more to find out which policies are most common for accountants in California, and start an application to get your free quotes today.

Find the right insurance policies for your accounting business

The most common policies for California accountants vary depending on a variety of factors, including revenue, client contracts, and partnerships. The table below illustrates which policies might work best for your business type.



Business type General liability / BOP Professional liability Workers' comp
Sole proprietor X X  
Partner X X  
Contractor / freelancer X X  
Employer X X X



General liability insurance: General liability insurance is the foundation of an accountant’s business protection. Coverage extends to bodily injury, client property damage, advertising injury, and the cost of legal defense. Most commercial leases require you to have this coverage.

Business owner's policy (BOP): Accountants sometimes qualify for a business owner’s policy. This package helps your business save money by bundling commercial property insurance with general liability at an affordable rate.

Professional liability insurance: Many clients require proof of professional liability insurance before entering contracts for professional services. This policy, also called errors and omissions insurance or accountant liability insurance, can help cover legal expenses if you’re sued for unsatisfactory work or a business discrepancy.

California workers' compensation insurance: California state law requires workers’ comp coverage for all small businesses with employees, including corporate officers and directors. If an employee is injured on the job, workers’ comp can help pay for medical fees and lost wages.

Few accountants suffer work-related illness or injury in the United States. Those that do are often the victims of avoidable injuries, such as overexertion and slip-and-fall accidents. However, some California sole proprietors still opt to get workers’ comp insurance for themselves. If an injury keeps them from working, the policy covers lost wages and helps to keep their business open.

Business insurance costs for accountants in California

California accountants pay more than national median costs for two key coverages: business owner’s policy and workers’ comp insurance, according to an analysis of Insureon applications. The good news? The same analysis reveals the median premium for errors and omissions and general liability insurance is less for California accountants than the national median, $875 per year ($73 per month) versus $1,220 ($102 per month). However, that price could change significantly based on business location and other factors.

Median Business Insurance Costs for California Accountants

Save time and money with Insureon

Insureon’s industry-leading technology helps accountants in California save time and money shopping for insurance by comparing policies from dozens of top U.S. carriers. Simply apply online and review quotes for the policies that best fit your business needs. Insureon’s insurance specialists are licensed in California and can answer your questions as you consider coverage.

To make the application go even quicker, have this information ready:

  • Workforce details, such as the number and types of employees.
  • Current and projected revenue.
  • Business partnerships.
  • Insurance history and prior claims.
  • Commercial lease insurance requirements.

Apply for free accountant insurance quotes today.