Business Insurance Requirements for Tax Preparers in Florida

If you’re a tax preparer in Florida, you are probably an expert on the subtleties of complicated tax laws. In order to protect your business from unforeseen circumstances, you should also consider learning about the types of business insurance that can protect your company.

One of the biggest risks tax preparers face is a potential lawsuit from clients who aren’t satisfied with the way their taxes were prepared, or who think you made a mistake that cost them financially. If they sue, professional liability insurance can cover your courtroom costs, including attorney fees. Whether you rent your office or work from home, it’s a good idea to purchase general liability insurance. This policy can pay for costs related to third-property damage or injuries. Additionally, if you employ four or more employees, the state of Florida requires you to purchase workers’ compensation insurance.

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 tax preparers in Florida, and start an application to get your free quotes today.

Find the right insurance policy for your tax preparer business

The most common policies for certified tax preparers in Florida 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.


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


General liability insurance: General liability insurance is the foundation of a tax preparer’s business protection, with coverage that 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): Tax preparers 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 tax preparer liability insurance, can help cover legal expenses if you’re sued for unsatisfactory work or a business discrepancy.

Cyber liability insurance: There’s a good chance that you store your clients’ personal financial information on your computer or online. If you experience a breach, your clients’ data could be at risk. Cyber liability insurance, also called cyber risk insurance, protects your business from legal costs that result from the mishandling of electronic information or data breaches.

Florida workers’ compensation insurance: In Florida, you are required to purchase a workers’ compensation policy if your business has four or more employees. Even if you only have one employee, it’s worth considering this type of insurance. If an employee suffers an on-the-job injury, this coverage can pay for costly medical bills and lost wages. If you’re a sole proprietor, you aren’t required to purchase this coverage; however, it can protect your income and pay your medical costs if you get hurt at work.

Business insurance costs for tax preparers in Florida

According to an analysis of Insureon applications, tax preparers in Florida can expect to pay around $750 for general liability insurance, compared to the national median annual cost of $685. However, Floridians save when it comes to the business owner’s policy, with a median cost of $585 compared to the national median price of almost $900. The median cost for an annual errors and omissions policy in Florida is roughly $550 per year, and workers’ compensation will cost most tax preparers in Florida around $770 annually, which is about $150 more than the national median.

Median Insurance Costs for Florida Tax Preparers

Save time and money with Insureon

Insureon’s industry-leading technology helps tax preparers in Florida 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 Florida 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 tax preparer insurance quotes today.