Business Insurance Requirements for Tax Preparers in Pennsylvania

As a tax preparer, you’re adept at managing finances, and you’re probably familiar with Pennsylvania’s relevant laws. But how well is your own business protected? A costly lawsuit or unforeseen event can seriously cripple a small business. That’s why you need tax preparer insurance to protect you and your company.

The only policy Pennsylvania law requires is workers’ compensation insurance. Employers must carry it even if they only have one part-time employee. Whether other policies are required depends on your business. If you lease a commercial office, your landlord may require you to have general liability insurance and property insurance. You may also have clients who want to see your professional liability insurance. This policy covers lawsuits that stem from your professional work. Since Pennsylvania doesn’t require tax preparers to be certified or licensed, professional liability shows potential customers you’re a trustworthy business owner.

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 Pennsylvania, and start an application to get your free quotes today.

Find the right business insurance for your tax preparation business

The most common policies for Pennsylvania 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. Coverage 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’s liability insurance, can help cover legal expenses if you’re sued for unsatisfactory work or a business discrepancy.

Cyber liability insurance: Cyber liability insurance helps tax preparation businesses survive data breaches and cyberattacks by helping to cover recovery expenses. You may need this policy if you handle sensitive data such as credit card numbers, passwords, or Social Security numbers.

Pennsylvania workers' compensation: Pennsylvania state law requires most employers with one or more employees to carry workers’ compensation coverage. That regulation includes full- and part-time staff, along with family members. If an employee is injured on the job, workers’ comp can help pay for medical fees and lost wages. Recently, Pennsylvania lawmakers decided to let sole proprietors and partners purchase workers’ comp for themselves. However, it is not required.

Business insurance costs for tax preparers in Pennsylvania

Two key business insurance policies cost more in Pennsylvania: a business owner’s policy (BOP) and general liability. These outstrip the national median by roughly $100 per year, according to an analysis of Insureon applications. However, both errors and omissions and workers’ comp policies tend to be less expensive in Pennsylvania than they are nationally. If you’re a sole proprietor in the state and you decide to buy general liability and errors and omissions policies, the median cost is about $1,270 per year or approximately $105 per month. Once you take on employees, you’ll need to add workers’ comp to the equation. This brings the cost up to $1,768 per year (approximately $147 per month).

Median Insurance Costs for Pennsylvania Tax Preparers

Save time and money with Insureon

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