Business Insurance Requirements for Tax Preparers in New York

Regardless of whether you’re a tax preparer in New York City or Buffalo, you’re an expert in the complicated art of tax filing. You take care of your clients and help them make smart financial decisions. At the same time, you need to protect your own business interests. One way to protect your business is by selecting appropriate commercial insurance.

Most tax preparers operate out of an office. If you rent the space, your landlord may require you to purchase general liability insurance before you sign the lease. This policy can pay costs associated with third-party property damage or injuries. In your line of work, you are trusted with preparing your clients’ taxes accurately and punctually. Mistakes could have serious ramifications for your clients. Professional liability insurance can pay your legal fees if clients sue over an error you made in their taxes. If you have employees, New York state law requires you to purchase workers’ compensation insurance, even if your workers are only part-time.

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 New York, 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 New York-licensed tax preparers 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: If you store client information on your computer or online, it’s your responsibility to use the right technology to keep it secure. If a client’s private information is compromised, cyber liability insurance can help pay for any lawsuits against your business related to the security breach.

New York workers’ compensation insurance: Almost any business that employs workers in New York must purchase workers’ comp coverage for its employees. Workers’ comp can pay for lost wages and medical expenses if an employee is injured at work. If you are a sole proprietor you aren’t required to purchase coverage, but it’s something you may want to consider. Otherwise, if you injure yourself at the office you could be forced to pay your medical bills yourself.

Business insurance costs for tax preparers in New York

Based on an analysis of Insureon applications, coverage for tax preparers in New York tends to be a little higher than the national median cost. A general liability policy will set most New York tax preparers back about $775 per year, or slightly over $1,000 if purchased along with commercial property coverage in a BOP. The national median cost for errors and omissions coverage is $570; however, in New York the median price is closer to $700. New Yorkers typically save when it comes to workers’ comp. The median price is roughly $450 per year for New York-based tax preparers, which is about $100 less than the national median.

Median Insurance Costs for New York Tax Preparers

Save time and money with Insureon

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