It might not seem like it, but bookkeeping insurance is an essential component of a bookkeeping business. It makes sense when you consider that a bookkeeper’s job is maintaining client financial records. There are three main types of insurance that all bookkeeping professionals should have.
1. Professional Liability
2. Cyber Liability
3. Business Owners Policy
Professional liability insurance is also known as Errors & Omissions. This type of bookkeeping insurance is designed to protect your business in case of human error. Should there be an honest error or omission in documentation, professional liability insurance protects against negligence claims.
It may seem like overkill for a small business, but when you’re in the business of managing other people’s money, you can’t be too safe. Cyber Liability Insurance provides protection in the event of data breaches and cyber-attacks that can put both your and your client’s data at risk.
Business Owners Policy
Regardless of business size, you will want a business owner’s policy. It covers damage to buildings, business-related personal property, lost income and loss of receivables, documents and papers. Electronic files can also be covered in a BOP.
Whether you’re an individual, small firm or large company, Bookkeeping insurance provides valuable protection for you and your clients.