Learn about business insurance requirements and the most common policies for tax preparers in Illinois.
If you have a commercial lease, your property manager may require you to purchase general liability insurance. Commonly purchased by tax preparers in Illinois, general liability insurance can protect your business from expenses associated with common mishaps, such as client property damage and injuries.
Your clients may require errors and omissions insurance in a contract. Also called professional liability insurance, this policy provides financial protection if a client files a lawsuit claiming your work caused financial harm because it was late, erroneous, or incomplete.
State law in Illinois requires every small business with even part-time employees to provide workers’ compensation insurance, which covers medical bills for work injuries.
The most common policies for tax preparers in Illinois vary depending on revenue, client contracts, partnerships, and other factors.
General liability insurance is the foundation of a tax preparer’s business protection, with coverage that extends to client injuries, client property damage, and advertising injuries. Most commercial leases require you to have this coverage.
Many clients require proof of errors and omissions insurance before entering into contracts for professional services. This policy, also called professional liability insurance or tax preparer liability insurance, can help cover legal expenses if you’re sued for unsatisfactory performance or a work mistake.
Cyber liability insurance can help tax preparers survive data breaches and cyberattacks. Many errors and omissions policies include this coverage, but check with your licensed Insureon agent to make sure.
If you own a tax preparation business in Illinois that has employees, you are required to carry workers’ compensation coverage. If you are a sole proprietor, the coverage is optional. However, if you break your arm while tripping down the stairs at a client’s office, or develop carpal tunnel syndrome after years of working on a computer, you can turn to your workers’ comp policy to help pay your medical bills and lost wages.
According to an analysis of Insureon applications, the typical tax preparer in Illinois can expect to pay more than the national median for some policies, and about the same as the national median for others.
For example, Illinois tax preparers pay a median premium of $770 annually for worker’s compensation, more than the national median of $624 for the profession. However, they pay a median premium of $687 annually for general liability insurance, just slightly more than the national median of $684.
Insureon’s industry-leading technology helps tax preparers in Illinois save time and money shopping for insurance by comparing policies from top U.S. carriers. Start a free online application to review quotes for the policies that best fit your business. Our insurance agents are licensed in Illinois and can answer your questions as you consider coverage.
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