Tax Preparer Insurance in Sugar Land, TX
As a tax preparer, you are often entrusted to handle important financial documents containing confidential and sensitive information. In addition, your services may include providing crucial professional advice. Given the significant responsibility you bear while conducting ordinary operations, you should maintain a robust and diverse insurance portfolio.
What Is Tax Preparer Insurance?
Tax preparer insurance does not refer to a single type of coverage that can be acquired through one policy. Rather, it’s a combination of policies that, when combined, provide a wide array of financial protection for your business across many common risks and exposures.
What Coverages Do Tax Preparers Need?
Although the details of your policies may vary depending on unique circumstances, several core coverages may be advisable to include in your insurance portfolio, such as the following:
- Cyber liability—This type of insurance, also known as data breach insurance, can provide financial assistance following a cyber incident and may help pay for the following resulting costs:
- Notifying affected parties
- Restoring or repairing compromised systems
- Restoring personal identities of affected customers
- Negotiation and payment of a ransomware demand
- Legal costs
- Commercial property—This coverage protects your business’s physical property and may assist in repair or replacement costs for the following:
- Professional liability—If a client or customer sues your business for inadequate, incomplete or late services, this coverage, also known as errors and omissions insurance, can provide financial aid for losses, such as the following:
- Legal defense costs
- General liability—By including this coverage in your insurance package, your business may be able to access funds to help pay for third-party losses for which you are at fault arising from the following:
- Bodily injury
- Property damage
- Personal and advertising injury (e.g., libel, slander, invasion of privacy, false advertising)
- Workers’ compensation—This coverage provides financial assistance if an employee is injured on the job or develops a work-related illness and may help pay for the following losses and expenses:
- Medical bills
- Lost or reduced wages
- Disability benefits
- Death benefits
- Legal costs
- Business interruption—If your business is forced to pause regular operations temporarily, this coverage, also known as business income insurance, may provide funds to insulate you from various resulting costs, such as the following:
- Rent/mortgage payments
- Lost income
- Employee payroll
- Tax and loan payments
- Employment practices liability—This coverage can protect your business financially if a current, former or prospective employee accuses you of improper workplace conduct, including the following:
- Wrongful termination
- Improper hiring practices
- Failure to promote
- Sexual harassment
Get the Right Coverage
Involving yourself in someone else’s finances is a sizable responsibility that includes substantial risks and exposures. Regardless of how experienced and diligent you may be, even a slight error or moment of negligence could result in you being at fault for significant losses and damages. Without sufficient insurance, your business’s out-of-pocket costs could have irreparable ramifications for its finances and future.
We’re here to help. The agents at Texas General Insurance have over 20 years of experience helping individuals, families and businesses assess and address their coverage needs. Contact us today to get started.