Bookkeepers Insurance

From error-related audits, fraud in financial recordkeeping, or claims for errors - the lawsuits bookkeepers could face could not only financially devastate the company but also make them bankrupt.

Insurance is important for bookkeepers as it safeguards them and their business from unforeseen lawsuits and claims that result from professional mistakes, and sometimes accidents at the office or place of work.

Bookkeepers have to perform with accuracy, and efficiency when working for a client or a large firm. However, errors or oversights are not uncommon and can result in legal action if the client deems appropriate so that they can recoup any losses that they have sustained as a result of the errors made.

For that reason, bookkeepers' insurance is necessary to safeguard the financial firm from any fees, expenses, and costs that may arise as a result of claims and lawsuits.

For instance, if the bookkeeper unintentionally enters data incorrectly or receives an accusation of recordkeeping fraud, their legal expenses will be covered by the insurance company. Additionally, if the bookkeeper gets injured on the job, which is a pretty rare occurrence, their medical expenses will be covered by the insurance company too.

There are several different insurance policies that bookkeepers can pick from. The level of cover you need will heavily depend on the size of your financial firm, the state you operate out of, clients you deal with, and various other factors.

Please take a look below to find out the exact and most recommended insurance policies for bookkeepers in the United States.

Every bookkeeping firm is different from the next. Each business deals with a different set of clients and likely has a different set of responsibilities, which means that the level of risk they face is also slightly different. As a result of that, the premium of bookkeepers' insurance can differ quite greatly from firm to firm.

The average bookkeeping firm in the United States pays around $40 per month or $480 per year on professional liability insurance. This is also known as errors and omissions insurance for bookkeepers. This policy provides coverage for lawsuits related to professional mistakes, accusations of negligence, and more.

General liability insurance for bookkeepers costs $30 monthly or $360 annually. This insurance policy provides financial security against claims resulting from bodily injuries, property damage, and similar unfortunate events.

For $60 every month or $720 per year, bookkeepers can get cyber liability insurance. This policy is important for bookkeepers that handle sensitive information as it provides coverage for legal costs related to cyberattacks or data breaches. Having this insurance policy will also cover the costs of notifying affected clients as well as any legal expenses that may arise if a client decides to sue the company.

Worker's compensation insurance costs around $30 per month, which amounts to $360 annually. This policy covers medical expenses and lost salaries for workers who have endured injury or illness at their place of work.

Bookkeepers must perform error-free at all times or else, their clients may sue them if these errors end up costing their company a lot of money.

And since bookkeeping is done by people, errors are not a rare occurrence. As a result of that, the most common claims made against bookkeepers are in relation to data entry errors, negligence, and other professional mistakes.

No matter the reason for the legal action taken against your bookkeeping firm - having an adequate level of cover in place will financially shield your business in the event of a lawsuit.