How Much Does Bookkeeper Business Insurance Cost? 2026 Rates

Bookkeeping businesses in the United States typically spend between $500 and $1,200 per year on comprehensive business insurance, which equals about $42 to $100 per month. Actual premiums vary depending on the overall risk profile of the business. Several factors influence how much coverage will cost, including services offered, size of the business, location, and claims history.

How Much Does Bookkeeping Business Insurance Cost?

On average, bookkeeping businesses in the United States spend between $500 and $1,200 annually on a full insurance package. That equals about $42 to $100 per month. These figures are only estimates, and actual premiums vary depending on the size and scope of your operation.

Every bookkeeping business faces unique risks, so premiums are never one-size-fits-all. For example, a small firm offering payroll processing, invoicing, and tax preparation will typically pay less than a larger company that also handles specialized services such as foreign currency transactions.

The services you provide, the value of your property, and your location all play a major role in shaping costs.

Several factors influence how much you’ll pay for insurance:

• Services offered – Impacts professional liability and cyber coverage needs.
• Number of employees – Larger staff increases workers’ compensation requirements.
• Property size and value – Bigger offices or high‑value equipment drive up commercial property premiums.
• Claims history – Frequent past claims raise rates, while a clean record can lower them.
• Business interruption and add‑ons – Extra coverage options add to the total bill.

Understanding these variables helps bookkeeping business owners estimate insurance needs more accurately and budget for the real costs of protecting their operations. With the right coverage, you can safeguard your staff, clients, and financial data without overspending.

Average Bookkeeping Business Insurance Costs For Coverage Types

When it comes to protecting your bookkeeping business, different types of insurance cover different risks. Understanding the average cost, coverage details, and what influences pricing for each policy type can help you build a more effective insurance plan. Here’s a closer look at the major coverages most bookkeeping businesses need.

• General liability insurance: $42 per month
• Employment Practices Liability (EPLI): $205 per month
• Business Income (Interruption) Insurance: $91
• Business owner’s policy: $67 per month
• Professional liability insurance: $45 per month
• Workers’ compensation insurance: $80 per month
• Commercial auto insurance: $185 per month
• Commercial property insurance: $125 per month
• Cyber liability insurance: $152 per month

General Liability Insurance

The average cost of general liability insurance for a bookkeeping business is about $42 per month.

General liability covers third-party bodily injury, property damage, and advertising injuries. For example, if a customer slips on a wet floor and gets injured, this policy would help pay for their medical expenses and your legal defense costs.

Typical policy limits are $1 million per occurrence and $2 million aggregate.

Factors that influence the cost include the business type (your services), location, office environment (if clients frequently visit your office), contract requirements, and previous claims history.

Average annual premiums by state:

Business Owner’s Policy (BOP)

The average cost of a business owner’s policy (BOP) is about $67 per month for a bookkeeping business.

A BOP bundles general liability insurance with commercial property insurance. It protects against customer injuries, property damage, and loss or damage to your office building, furnishings, and equipment. For instance, if a fire damages your computers and files, the BOP would help cover repairs and replacements.

Typical policy limits are $1 million per occurrence and $2 million aggregate for liability, with separate property coverage limits based on the value insured.

Cost factors include the size of your business, location risk (such as flood or crime rates), business revenue, number of employees, and any optional endorsements like cyber protection, directors and officers insurance, equipment breakdown, or extra expense coverage if expenses for a disruptive event go beyond your normal costs.

Average annual premiums by state:

Professional Liability Insurance

The average cost of professional liability insurance for a bookkeeping business is about $56 per month.

Sometimes called errors and omissions, this type of insurance covers claims relating to errors, emissions, negligence, or other financial losses that a customer or client experiences because of the advice you gave. For example, one of your tax preparers makes a calculation that results in a significant IRS penalty and the client sues you for that penalty. This would help cover the cost.

Typical policy limits are $1 million per claim, but higher limits are sometimes required by state laws or client contracts.

Cost depends on the size of your business, the services you offer, the number of years you’ve been in business, coverage limits, and claims history.

Average annual premiums by state:

Cyber Liability Insurance

The average cost of cyber liability insurance for bookkeeping businesses is $102 per month.

Cyber liability insurance covers the costs an bookkeeping business might incur after a cyber incident. For example, if a breach leads to personal contact information and financial details for clients being exposed, such as Social Security numbers, this would extend to lost income after a cyber attack, forensic investigations, data recovery costs, regulatory fines, and the costs of informing customers about the attack.

Bookkeeping businesses can benefit from this coverage if they handle any sensitive data, or if they want to cover gaps in their insurance.

Costs are based on factors like the size of your organization, the type of client data you handle, and the cybersecurity measures you already have in place.

Average annual premiums by state:

Employment Practices Liability (EPLI)

The average cost of employment practices liability insurance for a bookkeeping business is $205 per month.

This is a form of insurance that protects your business against claims that employees file alleging wrongful termination, harassment, discrimination, or any other violation of their employee rights.

For example, a former employee sues you for discrimination during the promotion process. This would help cover legal fees and any potential settlement.

Average annual premiums by state:

Business Income (Interruption) Insurance

The average cost of business income (interruption) insurance for a bookkeeping business is $91 per month.

This is a form of protection to offset lost net income and help cover operating expenses should your business have to close temporarily because of an unforeseen covered event like a fire or a natural disaster.

For example, a severe storm damages your office forcing the firm to operate remotely for one month. This would help cover the lost revenue for this time frame.

Average annual premiums by state:

Workers’ Compensation Insurance

The average cost of workers’ compensation insurance for a bookkeeping business is around $50 per month.

Workers’ comp covers medical bills, rehabilitation, and lost wages for employees injured on the job. For example, if an employee trips and falls over computer cords left in the middle of a walkway at the office, and breaks their ankle, workers’ compensation would cover their hospital visit and part of their lost wages while they recover.

Policy limits are regulated by each state, but typically include medical costs and a percentage of lost wages without a set cap.

Premiums are influenced by the size of your payroll, the type of work employees perform (whether in your office or on-site for each client), your claims history, and any implemented safety programs.

Average annual premiums by state:

Commercial Auto Insurance

The average cost of commercial auto insurance for a bookkeeping business is about $185 per month.

Commercial auto insurance covers vehicles owned or used by the business for accidents, theft, vandalism, or damage. For example, if an employee gets into a T-bone accident while driving to a meeting at a third party location in a company vehicle, this policy would cover the damages and any third-party claims.

Typical policy limits are around $1 million combined single limit (covering both bodily injury and property damage).

Factors influencing the cost include the number and type of vehicles, how often they are used, the driving records of employees, and whether you add endorsements like hired and non-owned auto insurance (HNOA) for employee-owned vehicles used for company services like driving to and from off-site consultations.

Average annual premiums by state:

Commercial Property Insurance

The average cost of commercial property insurance for a bookkeeping business, when purchased separately, usually runs $125 per month.

Commercial property insurance covers damage to the agency building and its contents due to fire, theft, vandalism, or certain weather events. For example, if a fire destroys equipment like computers, this policy would pay for repairs or replacement.

Typical policy limits are based on the replacement cost value of the insured property, which could easily reach into the hundreds of thousands depending on your location, building size, and equipment investments.

Premiums are determined by factors like the building’s age and construction type, fire safety systems in place, replacement cost of equipment, neighborhood crime rates, and whether you add endorsements such as professional liability or cyber protection.

Average annual premiums by state:

Bookkeeping Business Insurance Costs By Provider

Bookkeeping business insurance costs will vary greatly depending on the insurance carrier. Use the table below to find average costs across different providers.

Note: These estimates are based on typical liability and professional indemnity coverage for bookkeeping businesses in the U.S. Actual premiums will vary depending on factors such as business size, services offered, location, coverage limits, and claims history.

What Factors Impact Your Bookkeeping Business Insurance Costs?

Insurance premiums for bookkeeping businesses are calculated by underwriters who assess your company’s overall risk profile. From the services you provide to your claims history, several factors determine how much you’ll pay for coverage.

Type Of Services

Not all bookkeeping operations carry the same risks. Firms offering basic bookkeeping and payroll services typically face lower liability exposure than those handling inventory management, risk analysis, or complex financial consulting.

Location

Where your office is located plays a major role. Businesses in high‑crime, flood‑prone, or urban areas generally pay more for property and liability coverage. Suburban or rural offices with fewer claims often benefit from lower premiums.

Size Of The Operation

The larger your business, the greater the exposure. More square footage, employees, and revenue increase the likelihood of claims. Workers’ compensation costs also rise with bigger staff counts, especially if employees travel frequently to client sites.

Property Value And Equipment

High‑value office equipment, technology, or custom furnishings drive up commercial property premiums. Many bookkeeping firms also add endorsements like cyber insurance to protect sensitive client data, which increases costs but provides essential coverage.

Claims History

Past claims are a key factor. Companies with frequent property or liability claims are considered higher risk, leading to higher rates. A clean claims record, however, can qualify you for discounts.

Policy Limits And Deductibles

Higher policy limits provide stronger protection but increase premiums. Opting for a larger deductible can lower monthly costs, though it raises your out‑of‑pocket responsibility when claims occur.

Optional Endorsements

Add‑ons such as business interruption, cyber liability, or hired/non‑owned auto coverage tailor protection to your needs but raise premiums. These are especially important for bookkeeping businesses with off‑site consultations, sensitive data, or exposure to natural disasters.

Insurance Provider

Not all insurers price coverage the same way. Some specialize in financial risks and may offer more competitive rates or flexible options for bookkeepers with tax preparation or payroll services. Comparing quotes across multiple carriers is one of the best ways to save.

How To Lower Your Bookkeeping Business Insurance Costs

Running a bookkeeping firm can be costly, but your insurance premiums don’t have to drain your budget. While coverage is essential, there are practical strategies to reduce expenses without sacrificing protection.

1. Bundle Your Policies

One of the easiest ways to save is by combining multiple policies. Many insurers offer a Business Owner’s Policy (BOP) that packages general liability and property insurance at a reduced rate. Adding workers’ compensation or employment practices liability coverage through the same provider can unlock further discounts and simplify administration.

2. Ask About Discounts

Insurers often reward loyalty and upfront payments. You may qualify for reduced rates by signing a multi‑year agreement or paying your premium in full instead of monthly installments.

3. Strengthen Safety And Internal Controls

Accidents and liability claims drive up costs for both you and your insurer. As a financial services firm, strong internal controls are just as important as physical safety measures. Clear contracts, client sign‑offs, and robust data security practices help reduce exposure to cyber, professional liability, and employment practices risks. On the practical side, installing non‑slip flooring, keeping walkways clear, and servicing company vehicles regularly can lower general liability risks.

4. Build A Safer Work Environment

Workers’ compensation costs can be managed by focusing on staff safety. Training employees on fire safety procedures, maintaining clear emergency exits, and conducting regular drills reduces injuries. Fewer claims mean lower premiums.

5. Adjust Your Deductible

Opting for a higher deductible is a straightforward way to lower monthly premiums. Just ensure your bookkeeping business can comfortably cover the out‑of‑pocket amount if a claim arises.