No one enjoys filing their taxes on their own. The process is stressful, confusing and often so time-consuming that it takes away from the things they enjoy most. That’s why tax preparation companies are widely considered by many to be a necessary business. As the tax code changes each year, demand for professional tax preparers is only going to increase.
What You Need To Do
Whether you’re just getting started in the industry or are already an established pro, you need to protect your business every step of the way. You’re managing other peoples’ finances and making sure everything they send to the IRS is accurate. That puts you at serious risk for tax preparation liability.
If you enter something incorrectly or create errors on your clients’ tax returns, they may have cause to sue your practice. A comprehensive business liability insurance policy will help you cover the costs of those lawsuits and any settlement amounts the court assesses against you.
How To Stay on Top of Things
Since demand is likely to increase for tax preparation companies, it’s important that you review your coverage needs every year. As your business grows, you’ll need to increase your coverage and add supplemental policies to fully protect your business.
If you’re worried about your tax preparation liability, don’t panic. Reach out to your insurance agent and review your coverage needs as soon as possible. The sooner you do, the easier it will be to protect your company.