Business Insurance Requirements for Tax Preparers in Ohio

Tax preparers in Ohio are responsible for more than their customers’ tax returns. Beyond ensuring that returns are prepared accurately, you are also entrusted with your clients’ sensitive information, including Social Security numbers. If you make a mistake, or suffer a data breach, you run the risk of a lawsuit. Tax preparer insurance can help protect your firm from costy legal expenses.

One of the first policies most business owners purchase is general liability insurance. This policy can pay for costs associated with many common business mishaps, including third-party injuries and property damage. If you lease your office space, your landlord will probably require you to purchase this policy. Professional liability insurance can pay for courtroom costs if a client sues you over a professional error you made while calculating their taxes. If your business is hit with a data breach, cyber liability insurance can help cover the costs of notifying customers and conducting damage control. If you have any employees, the state of Ohio requires that you purchase workers’ compensation insurance, which can pay for medical expenses if an employee is injured at work.

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 Ohio, 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 certified tax preparers in Ohio vary depending on several 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: There’s a good chance that you store your clients’ personal financial information on your computer or online. If you experience a security breach, your clients’ data could be at risk. Cyber liability insurance, also called cyber risk insurance, protects your business from legal costs resulting from the mishandling of electronic information or data breaches.

Ohio workers' compensation insurance: Ohio business owners with one or more employees are legally required to obtain workers' compensation coverage through Ohio’s Bureau of Workers' Compensation. Even if you work alone, it’s a good idea to purchase this policy, since it can cover medical expenses if you or an employee is injured on the job, as well as pay partial lost wages.

Business insurance costs for tax preparers in Ohio

According to data gathered from Insureon applications, tax preparers in Ohio typically pay $500 annually for errors and omissions insurance, which is about $70 less than the national median. However, Ohio tax preparers will typically pay a little more for some other key policies. General liability insurance costs most Ohio tax preparers $775 annually, compared to the national median of $684. The median cost of a business owner’s policy in Ohio is $1,000, while the national median is $885 per year. Because Ohio has a state-run workers’ compensation fund, Insureon does not have any data for how much this policy costs Ohio tax preparers.

Median Insurance Costs for Ohio Tax Preparers

Save time and money with Insureon

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