Insurance for Your Accounting Business: What You Should Consider


Becoming an accountant can be a great career choice. In 2022, accountants earned $78,000 per year. In addition, experts predict a 4% increase in the demand for accountants from 2022 to 2032.

As an accountant, you can work for a company or start your own accounting business. If you choose the latter, you could have the freedom of running your own company. However, you might also have additional responsibilities.

One of these responsibilities can include purchasing the necessary types of insurance coverage. So, what types of coverage do you need for an accounting business?

Keep reading this guide to learn some answers.

The Importance of Business Insurance

Insurance is a source of protection for people and businesses. Thus, having the necessary coverage can be vital for a business, including an accounting firm.

Here are some of the reasons insurance coverages can be essential:

Help Reduce Risks

Almost every business has risks of damage, fraud, lawsuits, and more. A business insurance policy can help reduce these risks by offering protection to business owners.

Help Protect Against Lawsuits

Most accountants have risks of lawsuits. Thus, having insurance can be necessary, as it can help protect against lawsuits.

Covers Assets

A business may also have assets. Unfortunately, businesses can experience losses of assets through theft, fires, and other perils.

Employee Protection

When you hire people to work at your business, you should purchase coverage that can help protect them. Business insurance offers options for this type of protection.

"Peace of Mind"

The bottom line is having insurance can offer "peace of mind." Accounting firms that have the necessary coverage can experience the protection they might need to help reduce their risks of loss.

BOP for an Accounting Business

A common option business owners choose is a BOP insurance package. BOP stands for Business Owners Policy, and it provides a bundle of insurance coverages. A typical BOP policy includes three primary types of coverage:

General Liability

A BOP policy for an accounting firm may include general liability protection. This coverage is one of the most common types of insurance coverage for businesses.

The primary purpose of general liability insurance is to help protect against third-party claims. Thus, it can help protect your customers, clients, and vendors.

For example, if a customer falls while visiting your business, they might sue you for their injuries and damages. If you have general liability insurance, your policy can cover your costs for this event.

Business Property

An accounting firm has assets that might need protection. For example, your business might have desks, chairs, computers, and decorations.

A BOP can provide protection for items you own. In addition, most BOPs can protect against common perils, such as storm damage and theft. When purchasing a plan, ask about the perils the policy can cover.


Unfortunately, cyber crimes occur often. A cyber crime can lead to a thief stealing your customers' information, such as their names and Social Security numbers.

Businesses have the risk of experiencing a cyber attack. As a result, most companies consider cyber-risk coverage.

As you prepare to open a business that offers accounting services, you should think about this potential threat. After all, it can result in financial damage.

HomeHQ for Home-Based Accounting Businesses

Home businesses are popular, and you can operate many types of businesses from home. Many people do this for the benefits a home business offers.

However, running a business from home may require insurance protection. After all, your homeowners insurance plan could have limitations. For example, most home insurance plans exclude coverage for business operations.

So if you want to open a home-based accounting business, you might need home-based business insurance. Fortunately, you can purchase a bundled insurance plan for this type of business.

HomeHQSM is an insurance package specifically for home-based businesses. This policy is for home businesses with four or fewer employees and provides three forms of coverage:

Business Liability Insurance

Will you have clients or vendors at your home for business purposes? If so, your homeowners insurance policy may not protect against liability issues for your business.

With HomeHQ, you can obtain business liability coverage as part of your insurance plan. As a result, you can operate at ease, knowing you may have protection against third-party lawsuits.

Business Property Insurance

Again, your home insurance plan may exclude coverage of your business assets. Therefore, you should purchase a business plan that can cover your business items.

Business Inventory Insurance

Additionally, a HomeHQ policy provides inventory insurance (also called stock insurance). If you store business inventory at your house, you can protect it through an insurance policy.

Workers' Compensation

When you open an accounting business, you might be the only accountant offering services. However, you may decide to hire other accountants later on.

Additionally, you might need a receptionist to help assist with business operations and duties. You may also want other employees to handle various tasks for your new company.

Your business might want to consider Workers' Comp insurance, even if you only hire one employee. Of course, you might not need it if you don't hire employees.

Workers' Comp insurance can cover your employees if they encounter injuries or health problems from work-related activities. You may be required to provide Workers' Comp coverage to your employees, as it is often a legal requirement.

When your employees experience injuries from work, they can file a claim on your Workers' Comp policy. If approved, the plan can cover lost wages and medical expenses.

Get a Policy

You may want to obtain insurance coverage if you start an accounting business. You can look into these coverages as potential options. However, talking to an insurance agent can also be helpful.

When you discuss your needs with an agent, they can tell you your options. Then, they can customize a plan to help suit the needs of your business.

Contact us at PolicySweet® to learn more. We offer numerous types of business coverage that can help you protect your business.


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