One wrong number can cost a client.
Errors and omissions, cyber liability, crime and fidelity, and general liability for solo bookkeepers, payroll services and billing firms.
By Sam Alishahi · CA Insurance License #4348151 · Reviewed October 2026 · How this page is researched
Ledgers, payroll and client data
Bookkeeping claims are rarely dramatic. A missed payroll tax deposit, a wrong 1099, a misposted invoice that hid a cash problem. The client pays a penalty or makes a bad decision, then looks to you. Errors and omissions coverage is built for that, and it usually pays defense costs too, subject to the policy.
Bookkeepers also hold bank logins, payroll files and Social Security numbers. I pair E&O with cyber for data breaches and funds-transfer fraud, and with crime or fidelity coverage if you can move client money. Payroll services get a closer look because the IRS holds the employer responsible even when a provider misses a deposit.
- Errors and omissionsMistakes in books, payroll and filings.
- Cyber liabilityBreached client data and phishing losses.
- Crime and fidelityTheft of client funds by staff.
- General liabilityClient visits and office injuries.
What underwriters will ask
Having these ready means I can go to market on the first call. The quote form asks for the same things, and anything you don’t know yet can wait.
- Services: bookkeeping, payroll, billing, tax prep.
- Clients: number and largest industries.
- Money access: do you sign checks or move funds?
- Credentials: any certifications or registrations.
- Revenue: annual fees and staff count.
- History: prior E&O policy and retroactive date.
Bookkeeper insurance, answered
Is E&O claims-made?
Almost always. That means the policy in force when the claim is made responds, so keeping your retroactive date when you switch matters. I check it on every renewal.
If I prepare tax returns, is that covered?
Only if your E&O lists tax preparation. Paid preparers in California also need a PTIN and, unless exempt, CTEC registration. I make sure the policy matches every service you list on your site.
Who pays a payroll tax penalty I caused?
The IRS looks to the employer, and the employer may look to you. E&O may respond to that claim, subject to the policy terms. Some policies limit coverage for penalties, so I compare the wording.
Do I need cyber if I use cloud software?
Yes. Most breaches start with a stolen password or a spoofed email, not the software. Cyber coverage handles notification, recovery and many fraud losses.
Do you offer bookkeeper insurance outside California?
Yes. Clients across the country send the same quote form. Sam Alishahi is licensed in 48 states and Washington, DC and places policies there directly. In Florida and Washington, where Sam's licenses are still being issued, a partner agency in your state helps in the meantime. The shopping across carriers works the same way. Rules, minimums and markets differ by state — see insurance requirements by state.
Protect your bookkeeping practice.
List your services and client count, and I'll compare E&O and cyber options for bookkeepers.
Alishahi Insurance · Saman Alishahi, independent insurance broker, California License #4348151. General information, not a quote or a promise of coverage; coverage depends on underwriting and the terms, conditions and exclusions of the policy actually issued.
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(877) 711-4545Answered 24/7 · CA License #4348151
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Tell me when your policy renews and I’ll email you about six weeks before, when it’s worth comparing. One email, no calls.