Table of Contents
What Is Professional Liability Insurance for Accountants?
Professional liability insurance for accountants, also called errors and omissions (E&O) insurance or professional indemnity insurance in the UK, protects you when a client claims your work caused them financial harm.
This coverage pays for:
- Legal defence costs, even if the claim is completely false
- Settlements and court-ordered compensation
- Claims related to missed tax deadlines
- Errors in financial statements or bookkeeping
- Negligent advice that caused a client financial loss
- Breach of professional duty
Professional liability insurance for accountants is not the same as general liability insurance. You need both. General liability handles the slip-and-fall in your office. Professional liability handles the six-figure lawsuit over a tax error.
How Much Does Professional Liability Insurance for Accountants Cost in 2026?
USA: Cost of Professional Liability Insurance for Accountants
According to Insureon’s 2026 cost data, financial service and accounting professionals pay an average of $42 per month, or $500 annually, for professional liability insurance.