Public liability insurance

In case someone is injured or their property gets damaged, because of your bookkeeping business.

What’s typically covered by public liability insurance for bookkeepers?

Claims against your business for:

• damage to someone’s property, because of your work
• an injury caused by your business activities
• accidental damage or injury caused by your employees

If you do employ anyone, you’re usually required by law to have employers’ liability insurance too.

For example:

• a client visits your office and trips over a computer cable, twisting their ankle
• you spill coffee on a client’s laptop, causing damage to the screen and keyboard

Read more about public liability insurance

Employers’ liability insurance

In case something happens to an employee while they’re working for your bookkeeping business.

What’s typically covered by employers’ liability insurance?

Claims against your business for:

• an employee, including a temp or casual worker, suing you after falling ill because of working for you, or
• making a claim for an injury they’ve suffered through working for you

**Employers’ liability insurance is required by law if you have people working for you. Without it, you could be fined up to £2,500 a day for each employee.**

For example:

• one of your employees develops chronic back pain after sitting for long periods of time on an unsuitable desk chair
• a year-end temp is reaching for some files but accidentally pulls down a box of computer equipment, breaking a bone in their foot

Professional indemnity insurance

In case you’ve made an error in your bookkeeping, or provided a service that didn’t meet the expected standards.

What’s typically covered by professional indemnity insurance for bookkeepers?

Claims against your business for:

• advice you’ve given which turns out to be incorrect
• other errors in your bookkeeping or activities which end up costing your client money

For example:

• you fail to tell your client about some new tax legislation and they get a fine from HMRC as a result
• you mix up two client records, and send confidential files to the wrong person – they end up being one of your client’s competitors, and your client suffers a financial loss as a result

Read more about professional indemnity insurance

Business and office equipment insurance

In case things like laptops or office filing cabinets are lost, stolen, or damaged.

What’s typically covered by business and office equipment insurance?

• theft of the equipment you use to run your business, while at work or out and about
• accidental loss, flood, fire or damage to your equipment

For example:

• a flood in your home office damages your work phone and scanner
• someone breaks into your office and steals your laptop

Read more about business and office equipment insurance

Legal expenses insurance

In case you’re faced with legal costs from running your business.

What’s typically covered by legal expenses insurance?

• legal expenses resulting from your day-to-day bookkeeping activities, like an employee dispute
• the cost of making or receiving legal claims relating to property damage, nuisance or trespass
• HMRC investigations, or tax and compliance disputes
• includes a tax advice helpline, a 24/7 confidential legal helpline and crisis support to help protect your reputation as a trusted bookkeeper

For example:

• one of your employees brings a case against you for unfair dismissal
• your small office is vandalised and you need to begin legal proceedings

Read more about legal expenses insurance

Personal accident insurance

In case anyone you’ve covered is accidentally injured, at or outside of work.

What’s typically covered by personal accident insurance?

• injury or death at or outside of work, for anyone covered by the policy
• lost income, medical costs and hospitalisation benefit

For example:

• you slip on a wet floor in the supermarket, breaking your arm
• an employee cuts their finger over the weekend, keeping them off work for a week

Read more about personal accident insurance

Which type of workers do I need insurance for?

Employers’ liability insurance is a legal requirement if you employ people.

If you have people working for you, including bona fide subcontractors (BFSC), labour-only subcontractors (LOSC), part-timers, or full-time staff, employers’ liability insurance is required by law.

Read on for our simplified guide to the difference between labour-only subcontractors and bona fide subcontractors.

Will tools insurance cover all my equipment?

Depending on what you use to do your work, you may need other covers.

You may need more than tools insurance – for example, business equipment insurance if you have a work laptop, plant insurance if you use machinery.

Does bookkeeping insurance cover my work correctly?

Make sure you’re picking the right cover to protect you properly. It’s important to know that if you have another trade or job, you’ll need additional cover. For example, do you need to consider accountancy insurance or [clerical / secretarial services?

Do I need cover for other types of work?

If you provide other services, make sure you’re covered:

• Finance and legal
• Financial advisor / ifa
• Mortgage adviser / broker
• Actuary
• Will writer insurance

Other types of insurance

• Limited company insurance
• Self-employed insurance
• Freelance insurance
• Consultant insurance
• Contractors insurance
• Sole trader insurance

Which public liability cover limit should I choose?

Think about the maximum possible loss your business could face in the event of a claim, and make sure you take legal fees and damages into consideration. You can choose from three levels of coverage – £1 million, £2 million, or up to £5 million.