Learn about business insurance requirements and the most common policies for tax preparers in Michigan.
Which policies are required for tax preparers in Michigan?
If you have a commercial lease, your property manager may require you to purchase general liability insurance. Commonly purchased by tax preparers in Michigan, 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 Michigan requires every small business with employees to provide workers’ compensation insurance, which covers medical bills for work injuries.
What are the most common policies for a Michigan tax preparer?
The most common policies for tax preparers in Michigan vary depending on revenue, client contracts, partnerships, and other factors.
General liability insurance
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.
Errors and omissions insurance
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
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.
Michigan workers' compensation
Michigan state law requires workers’ compensation coverage for small businesses that employ three or more employees at once, or one or more workers for more than 35 hours a week for 13 or more weeks. If an employee is injured on the job, workers’ comp can help pay for medical fees and lost wages.
What do tax preparers in Michigan pay for business insurance?
According to an analysis of Insureon applications, the typical tax preparer in Michigan can expect to pay more than the national median for some policies, and less for others.
For example, Michigan tax preparers pay a median premium of $640 annually for errors and omissions, more than the national median of $570 for the profession. However, they pay a median premium of only $500 annually for a business owner’s policy, far less than the national median of $885.
Save time and money with Insureon
Insureon’s industry-leading technology helps tax preparers in Michigan 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 Michigan and can answer your questions as you consider coverage.
To make the application go 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.