Tax Preparation Service Insurance Coverage Checklist
The coverages a tax preparation service business may carry — core, prevalent, and situational — why each matters, and the gap most often missed.
Pull out your current policy and check the box next to any coverage you can confirm is already in place — anything unchecked is worth a quick conversation with your advisor. Coverage checklist for tax preparation services. Priorities reflect typical exposure; confirm against offices and services.
Tick each coverage you can confirm you carry — anything left unticked is a good question for your next policy review.
| Have it? | Coverage | Why this business needs it | Priority |
|---|---|---|---|
| Tax Preparer Professional Liability (E&O) | Covers client penalties, interest, and claims from return errors. | Core | |
| Cyber Liability | Covers stolen client data, EFIN theft, and breach notification. | Core | |
| Crime / Employee Dishonesty | Covers theft of client refunds or fees by employees. | Prevalent | |
| General Liability | Covers client injuries at storefronts and kiosks. | Core | |
| Commercial Property & Business Income | Covers equipment and lost income if an office closes mid-season. | Prevalent | |
| Workers' Compensation | Covers seasonal and year-round staff. | Core |
The coverage gap most often missed
The most commonly missed gap for this class is cyber coverage sized for tax season. A stolen EFIN or breached laptop at peak season exposes hundreds of clients to identity theft and fake returns, and E&O policies often exclude data breaches. Preparers should carry cyber coverage, use MFA everywhere, and keep the written security plan the FTC Safeguards Rule requires.
Send us the checklist and we'll review your tax preparation service coverage line by line, then market it across multiple carriers that compete for your account.
Related: Tax Preparation Service Insurance · Tax Preparation Service Supplemental (apply) · All coverage checklists
Frequently asked questions
What insurance does a tax preparation service business need?
The core coverages for a tax preparation service business are Tax Preparer Professional Liability (E&O), Cyber Liability, General Liability, Workers' Compensation. This checklist also lists the prevalent and situational coverages worth considering, with a plain-English note on why each matters.
Is this checklist insurance advice?
No. It is a free educational tool to help you have a more informed conversation with a licensed professional. It affords no coverage and is not insurance, legal, or financial advice — only your actual policy language governs what is and isn't covered.
Can Cory Washington & Co. review my tax preparation service coverage?
Yes. Share your checklist and we'll review your program line by line, market your account across multiple carriers, and explain the trade-offs in plain English. Cory Washington & Co. LLC is licensed in all 50 states.
This checklist is a free educational tool from Cory Washington & Co. to help you review your own coverage and have a more informed conversation with a licensed insurance professional. It is general information only — not insurance, legal, or financial advice, and not a recommendation to buy, change, or cancel any policy. Coverage terms, availability, limits, and requirements vary by policy, carrier, and state, and only the language in your actual policy governs what is and isn’t covered. Checking or leaving blank any item above does not indicate that you are adequately insured or under-insured. Using this checklist does not create a client, agency, or fiduciary relationship. Always consult a licensed professional about your specific situation.