Texas’ low business taxes, favorable geography, and thriving economy mean the Lone Star State often finds itself ranked high as a business-friendly state. However, a pro-business climate is just one aspect of building a robust accounting business. Another is getting small business insurance to protect your assets if things go wrong.
Texas has minimal insurance requirements for accountants. Workers’ compensation insurance is optional for all Texas employers, and state law does not require other liability insurance policies. However, you may enter into contracts that require insurance. Many commercial landlords include general liability insurance and commercial property insurance requirements in their leases to protect them from being held responsible for accidents that occur on their property. Similarly, your clients may want to see proof of professional liability insurance before they sign a contract.
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 Texas, and start an application to get your free quotes today.
Find the right business insurance for your accounting firm
The most common policies for Texas 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 type.
||General liability / BOP
||CPA professional liability
|1099 or independent contractor
|Business owner with employees
|Solo business owner
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.
Texas workers' compensation: Texas state law only requires workers’ compensation for businesses with government contracts. The coverage is optional for all other employers. That doesn't mean you aren't responsible for employee work injuries – you are. You just won't be penalized for not having a policy. Some Texas employers opt for coverage even when it’s not required. If an employee is injured on the job, workers’ compensation can help pay for their medical fees and lost wages.
According to data from the Bureau of Labor Statistics, accountants are most likely to suffer injuries from falls, slips, and trips. While on-the-job accidents are rare for accountants, injuries like these can keep you from working. Getting a workers’ comp policy for yourself can help your business survive if you’re forced to take time off due to injury.
Business insurance costs for accountants in Texas
Accountant insurance in Texas is quite affordable compared to the rest of the country, according to an analysis of Insureon applications. The median for errors and omissions insurance is $500 per year (or $42/month), less than half of the national median of $1,220 (about $102/month). All policies combined average out to only $195 a month.
Save time and money with Insureon
Insureon’s industry-leading technology helps accountants in Texas 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 Texas 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.