Accountants and Auditors Insurance Rates
How Much Does Accountant Insurance Cost?

As an accountant, you understand the importance of protecting your company from financial risk. CPA insurance shields your business from the cost of lawsuits over professional mistakes, accidents, injuries, and other unpredictable disasters.

Why do you need auditor / accountant insurance? Lawsuits are simply too expensive for the average small accounting firm. A malpractice case can cost thousands of dollars or more. Such costs could bankrupt firms and force them into debt. Fortunately, accountant insurance protects you from the cost of a lawsuit and offers important financial security. To help you budget your coverage, let's look at what a typical accounting firm or auditor pays for small business insurance.

Note: Insurance quotes below are only estimates. Actual costs can vary.

HOW MUCH IS
Professional Liability Insurance?

How Much Is Accountants Professional Liability Insurance?

While every accountant and auditor dreads a numerical error, Professional Liability Insurance (also called Errors and Omissions Insurance) covers more than just miscalculations. When clients dispute your work, claim you didn't catch an incident of fraud, or file a frivolous lawsuit against you, Errors and Omissions (E&O) Insurance will cover the cost of the lawsuit. A client's financial struggles, fraud, or other issues can lead to a blame game in which a client's lawyers file a lawsuit against their accountant or auditor. In these cases, accountant and auditor liability insurance can also help you settle a lawsuit quickly, because E&O can pay for settlements.

Nearly half of all accountants and auditors choose a Professional Liability policy with limits of $1 million / $1 million. About a quarter choose $500,000 / $500,000 limits, and another quarter choose limits of $100,000 / $300,000.

Accountants and auditors pay significantly more for Professional Liability Insurance than financial planners, bookkeepers and tax preparers.

To see how the cost of Professional Liability Insurance for accountants and auditors compares with other industries, visit Insureon's 2014 Business Insurance Cost Analysis New browser window icon..

HOW MUCH IS
General Liability Insurance?

What Does General Liability Insurance Cost?

Accountant's General Liability Insurance can pay for third-party lawsuits when a firm is sued over property damage, physical injuries, and damaged reputations. Why would an accounting or auditing firm be sued? Think of all the accidents that could happen to your firm. A deliveryman might trip while carrying a package up your steps. While visiting a client at their office, you could snag a power cord and pull a client's laptop to the ground, smashing it to pieces. These accidents could lead to expensive property / injury lawsuits, which GL Insurance can cover.

The typical General Liability Insurance policy for accountants and auditors costs $350 to $750, slightly more than average for small financial services firms in general.

Average Premium Rates on $1M / $2M General Liability Insurance Policies for Accountants and Auditors Compared with Financial Services Firms in General
Name Industry Average
Average Cost for Small Financial Services Businesses (USD)
Accountant Average
Average Cost for Small Accountanting and Auditoring Businesses (USD)

Mean policy premium:

$454.17

$497.15

Median policy premium:

$425.00

$425.00

HOW MUCH IS
a BOP?

What Does a Business Owner's Policy Cost?

A Business Owner's Policy is a two-policy insurance bundle that offers low premiums for small accounting firms. BOPs package General Liability and Property Insurance together but usually only cost slightly more than a GL policy. For around $600, you can get GL's lawsuit coverage and Property Insurance to cover your firm's electronics, office supplies, and other property that the company owns. After a fire or theft, your insurer can reimburse you for lost or damaged property. Some weather damage can also be covered, but this coverage varies from policy to policy.

Accountants and Auditors Business Owner's Policies typically cost $500 to $1,000 in annual premiums, right in line with the industry average.

Average Premium Rates on Business Owner's Policies with a $1M / $2M General Liability Limit for Accountants and Auditors Compared with Financial Services Firms in General
Name Industry Average
Average Cost for Small Financial Services Businesses (USD)
Accountant Average
Average Cost for Small Accountanting and Auditoring Businesses (USD)

Mean policy premium:

$596.57

$589.11

Median policy premium:

$500.00

$500.00

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