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South Dakota's business-friendly climate has drawn plenty of bookkeeping and tax-prep practices, but a welcoming environment does not remove the professional risk baked into the work. When a client believes your numbers cost them money, professional liability insurance, known as errors and omissions coverage, is what stands behind your practice.
Why E&O sits at the center of accountant coverage
The defining risk for accountants and bookkeepers is a financial one, so errors and omissions is the policy that matters most. If a return goes out with a mistake, a deadline slips past, or a piece of advice does not hold up and a client points to a loss, E&O is meant to respond to that claim of professional error.
Just as important, it covers the cost of defending you. Sorting out even a questionable claim can involve attorneys and paperwork, and for a lean practice those defense costs can be as painful as the claim itself.
- A tax or bookkeeping error a client says caused them a loss
- A missed filing or reporting deadline
- Guidance a client later disputes as incorrect
- Attorney and court expenses tied to defending a claim
General liability as a secondary layer
General liability is not the star of the show for accountants, but it fills a real gap. It handles the everyday physical incidents that any office can encounter, like a client slipping during a visit or an accidental bit of property damage, none of which E&O is meant to address.
Pairing the two gives a growing practice a fuller picture: E&O for the professional mistakes that drive most claims, and general liability for the ordinary accidents that come with having clients and a workspace.
Why Hiscox
Hiscox is built for small, service-based businesses, with an A (Excellent) rating from AM Best and online quotes in minutes. Available in South Dakota (49 states plus DC, not Alaska).
Frequently asked questions
My practice is growing fast. Does that change my insurance needs?
More clients generally means more returns, deadlines, and advice, which increases the chances that a mistake gets alleged somewhere. E&O scales with that exposure and is worth reviewing as your client list grows.
What kinds of claims does E&O actually respond to for an accountant?
It is built for claims that a filing error, a missed deadline, or bad advice caused a client a financial loss, and it also covers your legal defense against those claims.
Do I need general liability if I mostly work remotely?
It is still useful. Any time you meet a client in person or have property involved, an ordinary accident can occur, and general liability covers those physical incidents that E&O does not.
Disclaimer: Informational only, not insurance advice or a substitute for a licensed agent. Coverage descriptions are summaries; policy terms govern. Availability and pricing vary by state and business, and prices are illustrative. Hiscox is available in 49 states and DC, not Alaska.