Bookkeepers Insurance Rates
How Much Does Bookkeeper Insurance Cost?

Bookkeeper's insurance is an important part of your risk management strategy. When you're sued, your business insurance can pay for your legal fees, court costs, settlements, and judgments. Because lawsuit expenses can reach six figures, many bookkeepers find it wise to invest in liability insurance that will protect them from personal injury lawsuits, property damage disputes, and professional errors. Let's look at four insurance policies that other bookkeepers typically acquire and how much each will cost your firm.

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

HOW MUCH IS
Professional Liability Insurance?

How Much Is Bookkeepers Professional Liability Insurance?

Professional Liability Insurance / Errors and Omissions Insurance for bookkeepers can cover the cost of a lawsuit if you're sued over your work. If a bookkeeper makes a mistake and withholds too little or too much money from a paycheck, she could be sued. Whether it's a lawsuit about problems with payroll, data loss, or a mistake in a ledger, Professional Liability Insurance can pay for your lawyers' fees, court costs, and other lawsuit-related expenses. If you're hired as a contractor, some clients might even require that your have this insurance before you begin working for them.

Most bookkeepers buy Professional Liability Insurance with limits of $1 million / $1 million, but there are other options:

  • 15% buy policies with $500,000 / $500,000 limits.
  • 15% buy policies with $100,000 / $300,000 limits.
  • 10% buy policies with $250,000 / $250,000 limits.

Bookkeepers are a good representative for the financial services industry when it comes to professional liability insurance. They pay just slightly less than the industry average for higher limit policies and just slightly lower than the average for lower limit policies.

To see how the cost of Professional Liability Insurance for bookkeepers 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?

Bookkeeper General Liability Insurance can pay for third-party lawsuits over property damage, reputational injuries, and bodily injuries. As a bookkeeper, you may need to visit clients at their office. If you tripped over a computer cord and smashed a client's laptop, you could be sued for property damage. Or say a deliveryman visits your office, slips on your front steps, and cracks his head on the concrete. A personal injury lawsuit could cost your business thousands of dollars in legal expenses. Fortunately, General Liability Insurance can cover these costs, protecting you from potentially devastating lawsuit expenses.

The typical General Liability Insurance policy for bookkeepers costs $350 to $750, right in line with the average cost for small financial services firms in general.

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

Mean policy premium:

$454.17

$448.75

Median policy premium:

$425.00

$387.50

HOW MUCH IS
a BOP?

What Does a Business Owner's Policy Cost?

A Business Owner's Policy offers discounted insurance premiums for small bookkeeping firms. BOPs bundle two policies – General Liability and Commercial Property. When you buy this coverage together, insurers typically offer you a discount. BOP Property Insurance can cover your computers, electronics, office supplies, and other business property and reimburse your business for losses caused by fires, theft, and weather events covered by your policy.

Bookkeepers Business Owner's Policies typically cost $350 to $550 in annual premiums, slightly lower than 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 Bookkeeping Businesses (USD)

Mean policy premium:

$596.57

$513.00

Median policy premium:

$500.00

$500.00

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