You may not think that as a tax preparer you need a great deal of insurance coverage. However, if you make a mistake that costs a client dearly with the IRS, you could be sued. And without proper insurance coverage you could be forced to pay for legal fees and any resulting settlements or court orders out of pocket.
If you currently carry a business owner’s or property insurance policy, the liability portion of those policies will not cover you for mistakes you make in rendering your professional service.
That’s why tax preparer’s professional liability insurance should be a cornerstone of your business insurance portfolio, whether you work from an office or out of your home. The Importance of Professional Liability Insurance for Tax Preparers