Business Insurance Requirements for Accountants in Michigan

Michigan is consistently recognized as a business-friendly state. That’s likely part of why the state’s Department of Technology, Management, and Budget predicts 13.6 percent job growth for accountants and auditors by 2024.

Unfortunately, a healthy business climate doesn’t eliminate risk. Accounting insurance helps manage your exposure and protect your business. The only insurance policy Michigan state law requires is workers’ compensation insurance for accountants with employees. However, certain contracts may require you to carry other policies. For instance, clients may want you to have professional liability insurance (also known as errors and omissions insurance) before they sign a contract with you. If you’re leasing office space, your landlord may ask to see your commercial property insurance and general liability insurance policies.

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

Find the right business insurance for your accounting business

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


Business type General liability / BOP CPA professional liability Workers' comp
1099 or independent contractor X X  
Business owner with employees X X X
Solo business owner X X  


General liability insurance: General liability insurance is the foundation of an attorney’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.

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.

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.

Michigan workers' compensation: Michigan state law requires private employers to carry this policy if they have:

  • Three or more employees at any one time.
  • One or more employees for 35 hours or more per week for 13 weeks, or more.

If an employee is injured on the job, workers’ compensation can help pay for medical fees and lost wages. Accounting may not seem like a physically demanding job, but work-related injuries can happen. According to U.S. Bureau of Statistics data, falls, slips, and trips are the most common injuries experienced by accountants, as shown in the chart below.

Most Common Work Injuries for U.S. Accountants

Business insurance costs for accountants in Michigan

At about $125 per month, a business owner’s policy tends to be the most expensive policy purchased by Michigan CPAs. That’s not too surprising; a BOP bundles two policies, so it covers more and costs more, too. But what is surprising is the cost of workers’ compensation. At $30 per month, it’s less than half the national average. That’s mostly thanks to legislators in Lansing who choose to allow open competition for workers’ compensation insurance.

Median Insurance Costs for Michigan Accountants

Save time and money with Insureon

Insureon’s industry-leading technology helps accountants in Michigan 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. Our insurance specialists are licensed in Michigan 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.