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Accountants and bookkeepers handle the numbers clients build decisions on, so a mistake — or a claim of one — can get expensive fast. If you run a practice serving Illinois clients, professional liability is your core coverage.
What professional liability (E&O) covers
E&O protects you when a client says your work caused them a financial loss, even if you made no mistake:
- A filing error or missed deadline leads to a penalty the client blames on you.
- A client says your advice cost them money or triggered an audit.
- A reconciliation or report is challenged and the client seeks damages.
General liability will not cover these, because they are about your professional work, not physical injury or property damage. E&O handles legal defense and covered claims, which matters because defending even a baseless claim is costly.
What about general liability?
General liability covers injury or property damage, like a client hurt at your office. Some leases and contracts ask for it, and many practices add it. But for an accounting or bookkeeping practice, E&O is the priority. Bundling the two can lower your total.
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 Illinois (49 states plus DC, not Alaska).
Frequently asked questions
Do accountants in Illinois need professional liability insurance?
Most do. E&O covers claims that your work caused a client a financial loss, and clients and contracts often require it.
Is E&O the same as malpractice insurance?
For accountants, professional liability (E&O) is the coverage that handles claims of professional negligence in your work.
Does general liability cover an accounting mistake?
No. That is a professional liability claim, which is exactly what E&O is for.
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.