Business Insurance Requirements for Tax Preparers in Georgia

Georgia doesn't require any formal training, education, or licensing in order for tax preparers to set up shop in the state. Given the lack of requirements, clients may want to see proof of insurance before trusting your firm with their sensitive financial information and tax obligations. Beyond establishing trust with your clients, business insurance can protect your company from lawsuits and other unexpected costs.

Clients who want proof of your reliability may ask that you carry professional liability insurance, which can cover legal fees if a client thinks you made an error and sues your business. Tax preparers may also want to consider a business owner’s policy, which includes general liability insurance and commercial property insurance to protect your office and operations. If you employ three or more people, Georgia law requires you to have workers’ compensation insurance coverage.

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 Georgia, and start an application to get your free quotes today.

Find the right insurance policy for your tax preparation business

The most common policies for tax preparers vary depending on 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 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. This coverage includes bodily injury, client property damage, advertising injury, and the cost of legal defense. Most commercial leases require that you 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 a contract 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: This policy, also called cyber risk insurance, protects small businesses from expenses related to data breaches. If your business mishandles a client’s electronic information, you’re responsible for more than just legal fees. You might also be required to provide credit-monitoring services, in addition to informing your client of the breach and assisting with related expenses.

Georgia workers’ compensation: If an employee is injured on the job, workers’ comp can help pay for medical fees and lost wages. Georgia state law requires that businesses with three or more employees carry this coverage. Tax preparation is a relatively low-risk industry, but accidents still happen. An injury could put you or an employee out of commission for days, weeks, or even longer. Workers’ compensation coverage is an easy and relatively inexpensive way to protect your business.

Business insurance costs for tax preparers in Georgia

As a hub for Southern commerce, Georgia offers a low tax rate and relatively inexpensive cost of living. For certain types of policies, lower rates can be found with business insurance, as well.

According to an analysis of Insureon applications, tax preparers in Georgia typically pay less than tax preparers elsewhere in the nation. The median cost of general liability insurance for tax preparers in Georgia is $528 per year, which is about $150 below the national median. Georgia tax preparers can expect to pay roughly $850 per year for a business owner’s policy, just below the national median of $885. The median cost for errors and omissions coverage in Georgia is roughly $560 – slightly below the national median of $570. Meanwhile, a workers’ compensation policy for a Georgia tax preparer costs about $656 per year, which is slightly higher than the national median.

Median Insurance Costs for Georgia Tax Preparers

Save time and money with Insureon

Insureon’s industry-leading technology helps tax preparers in Georgia 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 Georgia 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.