Why Does a Bookkeeper Need Insurance?
Bookkeeping is built on trust, deadlines, and details. Even when you do everything right, a small mistake, a misunderstood instruction, or a client’s cash flow crisis can turn into a claim that targets your business. Insurance helps you keep serving clients without one dispute draining your time, savings, or reputation. Many bookkeepers also work inside client offices, handle sensitive financial data, and rely on laptops and cloud tools to deliver work. That creates real-world risks beyond “paperwork,” like a slip-and-fall during an on-site visit, a stolen device, or an allegation that your work caused a tax penalty or missed payroll. The right coverage gives you a backstop for legal costs, settlements, and the unexpected events that can interrupt your practice.
What Does Bookkeeper Insurance Cover?
Bookkeeper insurance is usually a package of policies that protects you from common business risks tied to client work, in-person operations, and your equipment. It can help pay for legal defense if a client claims your services caused them financial harm, and it can also respond if someone is injured because of your business activities. Coverage can extend to your office contents and business property, whether you work from a dedicated office or a small workspace. If you have employees, it can help cover workplace injuries and related wage replacement. The goal is simple: protect your income and keep your client relationships intact when something goes sideways.
A client says your error caused a costly problem
Someone gets hurt during a client meeting
Your equipment is stolen and work stops
Essential Insurance Coverages for Bookkeepers
General Liability
General liability helps when your business is blamed for bodily injury or property damage, like an accident during an on-site visit or damage to a client’s equipment while you’re working. It can also help with certain advertising-related claims, which matters if you market your services online.
Business Owner's Policy
A BOP typically combines general liability with property coverage in one policy. For bookkeepers, that can mean protection for computers, office furniture, and other essentials that keep your practice running. It is often a cost-effective way to cover the basics, especially if you have a small office or dedicated workspace.
Workers' Compensation
If you have employees, workers’ comp helps pay for medical bills and lost wages when someone gets hurt on the job, whether that happens in your office or while visiting a client. In California, workers’ compensation requirements can apply sooner than many owners expect, so it is smart to confirm what your staffing setup triggers.
Bookkeeper Insurance Made Simple
Everything you need to know about protecting your business, from coverage basics to real-world scenarios.
