Learn about business insurance requirements and the most common policies for tax preparers in Texas.
Which policies are required for tax preparers in Texas?
If you have a commercial lease, your property manager may require you to purchase general liability insurance. Commonly purchased by tax preparers in Texas, 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 your work caused financial harm because it was late, erroneous, or incomplete.
State law in Texas does not require small businesses to provide workers’ compensation insurance. This coverage is, however, still an appealing option for many business owners since it provides important protections for employees and employers after a work-related injury or illness.
What are the most common policies for a Texas tax preparer?
The most common policies for tax preparers in Texas vary depending on revenue, client contracts, partnerships, and other factors.
General liability insurance
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.
Errors and omissions insurance
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
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.
Texas workers' compensation
Texas state law does not require workers’ compensation for tax preparation businesses. That doesn't mean you aren't responsible for employee work injuries, which is why some Texas employers opt for coverage even when it’s not required. If an employee is injured on the job, workers’ compensation can help pay for their medical fees and lost wages.
What do tax preparers in Texas pay for insurance?
According to an analysis of Insureon applications, the typical tax preparer in Texas can expect to pay more than the national median for some policies, and less for others.
For example, Texas tax preparers pay a median premium of $1,000 annually for a business owner’s policy, more than the national median of $885 for the profession. However, they pay a median premium of only $460 annually for worker’s compensation, significantly less than the national median of $625.
Save time and money with Insureon
Insureon’s industry-leading technology helps tax preparers in Texas 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 Texas and can answer your questions as you consider coverage.
To make the application go 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.