Learn about business insurance requirements and the most common policies for tax preparers in North Carolina.
If you have a commercial lease, your property manager may require you to purchase general liability insurance. Commonly purchased by tax preparers in North Carolina, 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, for example, that you made a mistake on their return.
State law in North Carolina requires every small business with three or more employees to provide workers’ compensation insurance, which covers medical bills for work injuries.
The most common policies for tax preparers in North Carolina 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 North Carolina that has three or more employees, you are required to carry workers’ compensation coverage. Even if your business has fewer than three employees, a workers’ comp policy can help pay medical bills and lost wages if one of those employees breaks an arm while tripping down the stairs at a client’s office, or develops carpal tunnel syndrome after years of working on a computer.
According to an analysis of Insureon applications, the typical tax preparer in North Carolina can expect to pay more than the national median for some policies, and less for others.
For example, North Carolina tax preparers pay a median premium of $631 annually for errors and omissions, more than the national median of $570 for the profession. However, they pay a median premium of only $446 annually for general liability insurance, more than $200 less than the national median.
Insureon’s industry-leading technology helps tax preparers in North Carolina 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 North Carolina and can answer your questions as you consider coverage.
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