Do you need bookkeeping insurance for your bookkeeping business? Good news – Your liability as a bookkeeper is minimal and much better than a CPA unless fraud is discovered. A CPA has tighter rules and restrictions than a bookkeeper (that’s why they make so much more per hour. When a business owner engages with a bookkeepers, the business owner is responsible for their numbers, the job of the bookkeeper is to help with the organization of those numbers.
To be safe it is best, but not required to form a corporation or LLC to protect your personal assets and purchase errors and omissions insurance to protect yourself from a lawsuit from bad advice or significant mistakes from your calculations. Another tip to minimize your liability is to never sign checks for the client.
To get the best pricing on your bookkeeping insurance, get quotes from specialized insurance providers. Do a google search for bookkeeping insurance and several will come up. Figure on about $500 an up per year.