Business Insurance Requirements for Tax Preparers in North Carolina

You may be busiest at tax season, but you work hard all year long to take care of your clients and your business. One of the best ways to protect all you’ve worked so hard to achieve is with business insurance for your tax preparation firm.

If you rent your office space, your landlord will probably require you to purchase general liability insurance, which provides protection against costs associated with third-party injuries or property damage. Tax preparers may also qualify for a business owner’s policy, which bundles this policy along with commercial property insurance. If a client slips and is injured in your office, this can cover the resulting expenses. Professional liability insurance is the policy tax preparers turn to if a client sues, claiming that you made a mistake on their return. Tax preparers that employ three or more employees are required by the state of North Carolina to purchase workers’ compensation insurance, which can pay for expenses associated with work-related injuries.

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 North Carolina, 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 tax preparers in North Carolina 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: Your work often requires you to handle sensitive files, frequently in the digital world. If you suffer a data breach and your clients’ personal information is exposed, you could be held liable. With cyber liability insurance, you can be assured that you’ll be protected every step of the way, from investigation into the data breach to solutions to help you and your clients recover.

North Carolina workers’ compensation: If you own a business in North Carolina, you are required by state law to purchase workers’ compensation coverage if you have three or more employees. This policy can pay for an employee’s medical expenses resulting from a work-related injury, and also for partial lost wages. Even if you fall below the requirement or work alone, it’s still a good idea to purchase this policy, as accidents can happen in any office.

Business insurance costs for tax preparers in North Carolina

Tax preparers in North Carolina typically pay quite a bit less for general liability insurance coverage than the national median, according to an analysis of Insureon applications. Tax preparers in North Carolina typically spend around $450 for a general liability policy, compared to the national median cost of $684. The numbers more closely align when it comes to a business owner’s policy, which costs roughly $900 in North Carolina and $885 nationwide. The median cost for errors and omissions insurance in North Carolina is $631, which is about $60 more than the national median. However, the cost of workers’ comp coverage is slightly lower in North Carolina – $593 versus the national median price of $624.

Median Insurance Costs for North Carolina Tax Preparers

Save time and money with Insureon

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