Bookkeeping services may include payroll, preparation of financial reports and summaries, creating invoices and keeping track of an individual’s or business’ purchases, sales, receipts and payments. Bookkeepers provide a critical service to other small businesses and in so doing they face unique risks. We offer custom Bookkeeper Insurance, including General Liability, Professional Liability, Business Auto, Property, Worker’s Compensation and more.
Bookkeepers have a relatively low premises liability risk since clients typically don’t visit the office. However, any visitor, including delivery people, service technicians, vendors and maintenance workers, are susceptible to accidents. These can include tripping over electrical cords or rugs, slipping on wet walkways, or falling down stairs. What may seem like a minor accident can result in costly medical bills and even a lawsuit.
Bookkeepers and their employees are at risk if an error is made. Just as medical professionals require malpractice insurance, bookkeepers need coverage to protect their business in the event of a professional error. If you belong to a professional association, it likely requires you carry Professional Liability insurance. A miscalculation or failure on your part to stay abreast of the ever-changing regulations and audit requirements could result in a huge financial loss for your client. Defending against a lawsuit could send you into bankruptcy and even put your personal assets at risk. E&O insurance covers the loss, cost of damages, and your legal defense fees.
Bookkeepers and their employees may be injured from lifting heavy objects, falling, or in any number of other ways while in the office, a client’s office, attending a seminar or traveling for business. Most states require businesses to carry Workers Compensation, which covers any medical costs involved, but also pays lost wages if the employee must be off work due to his or her injury.
Bookkeepers may drive off-site to meet with clients, which means business auto risks will be increased. Vehicles may also be used for other business purposes such as running errands, attending seminars and conferences, and delivering documents. Business Auto insurance covers company-owned vehicles as well as liability for employee-owned vehicles and hired vehicles if Non-owned & Hired Auto Liability is purchased.
Bookkeepers often own or rent office space that can be at risk for damage from vandalism, catastrophic weather, faulty plumbing or electrical wiring, and other factors. For example, a lightning strike could result in a building fire, which in turn could result in additional water and smoke damage. Property Insurance covers the cost of repairs and replacement of any contents that may be ruined. Damage to the property can be severe enough to interrupt business operations, in which Property Insurance covers the loss of income until operations can resume.
Crime Insurance covers your business and your clients from theft and embezzlement by your employees. Bookkeeping services pose a relatively high risk for crime by dishonest employees because of the access employees have to client financial information. Coverage can also be extended to situtions when your employees steal from clients.