One wrong number, one big letter.
Errors and omissions, the CTEC tax preparer bond, cyber liability for client data and general liability for registered tax preparers, enrolled agents and seasonal tax offices.
By Sam Alishahi · CA Insurance License #4348151 · Reviewed October 2026 · How this page is researched
Returns, deadlines and data
A missed deduction, a late filing or the wrong filing status can bring penalties and interest, and the client may look to you to pay them. Errors and omissions insurance is built for that kind of claim.
Tax files also hold Social Security numbers and bank details. A stolen laptop or phished email can trigger notice duties under California law, so I pair E&O with cyber. Registered preparers also need the state bond.
- Errors and omissionsClaims from preparation mistakes.
- Tax preparer bondRequired for CTEC registration.
- Cyber liabilityBreach response for client data.
- General liabilityClients visiting your office.
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.
- Credential: CTEC, EA, CPA or attorney.
- Returns: number filed and types.
- Services: bookkeeping, payroll or audit help.
- Data: how you store and send client files.
- Revenue: annual figure.
- History: current policies and claims.
Tax preparer insurance, answered
Do I need a bond to prepare taxes in California?
Most paid preparers who aren't CPAs, enrolled agents or attorneys must register with CTEC, which requires a $5,000 tax preparer bond.
Does the bond protect me?
No. The bond protects clients. E&O is what defends you against a claim.
Will E&O pay a client's IRS penalties?
Many policies respond to penalties caused by your error, subject to the policy terms. Check the wording on fines.
Is E&O claims-made?
Usually. Keep it continuous so your prior acts date carries forward.
Do you offer tax preparer 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.
Official sources
Ready before tax season
Tell me your credential and how many returns you file. I'll quote E&O, the bond and cyber together.
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.
Tell me how to reach you. I’ll take it from there.
Takes about 30 seconds. Your application link comes by email right away, and you get an update at every step until your quotes are ready.
(877) 711-4545Answered 24/7 · CA License #4348151
Get a reminder before your renewal.
Tell me when your policy renews and I’ll email you about six weeks before, when it’s worth comparing. One email, no calls.