Why November Is the Perfect Time for Bookkeepers to Review Their Insurance

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1. End-of-Year Planning

Bookkeepers always need to stay a step ahead in their work. That applies to making plans to evaluate their liability insurance to ensure they’re adequately protected heading into a new year. This way, they know what coverages they need and what to do when they renew their policies.

2. Insurance Renewal Timing

Many insurance policies renew at the start of a new year. Taking time in November to thoroughly review your existing coverage gives you plenty of time to consider what changes you need to make before your renewal date.

3. Holiday Season Risks

You may experience increased client interactions over the holidays, some clients might typically close before the winter, or your clients’ employees may be working from home. This is why November is prime time to review the increased risks that come with the holiday season, which may require you to adjust or add to your policy’s coverages.

4. Tax Planning

Before you know it, tax season will be here. Reviewing your insurance helps you know what’s tax deductible. For instance, the Canada Revenue Agency states, “You can deduct all ordinary commercial property insurance premiums you incur on any buildings, machinery, and equipment you use in your business”. That’s helpful for you and your clients while documenting what expenses are deductible when filing a tax return.

5. Regulatory and Professional Compliance

Compliance requirements for bookkeepers may change from one year to the next. Knowing what those changes are and ensuring your coverage meets those requirements is vital. It’s better to do that review now before things get busier at the start of the new year.

6. Technology Changes

What new technologies or tech-driven methodologies are you using this year? Whether you’re using new software or not, data breaches and cyber-attacks are a constant threat for bookkeepers because of the confidential financial data you handle. If you don’t have cyber insurance, get it! If you have cyber coverage, review it to ensure the coverage limit is adequate.

7. Changes to Your Bookkeeping Business

How has your bookkeeping business changed over the year? Did you hire employees, buy new equipment, offer new services or take on more clients? If so, ensure your policy reflects those changes if you need to file a claim for damages or losses.

8. Think of Potential Risks

If you filed an insurance claim in 2024, assess the claim to determine if your coverage was adequate or not and consider if you need to increase your coverage to reduce future risks to your bottom line and reputation.

9. Cost Savings

Being proactive and shopping around for bookkeeper insurance before your existing policy renewal date comes due may help you save on your annual premium. Zensurance can help you do that quickly and easily.

10. Get an Updated Certificate of Insurance

Your clients may ask for an updated certificate of insurance verifying you are adequately insured to work for them. Reviewing your policy now allows you to ensure your coverage aligns with existing clients and new client contracts you sign.

Key Insurance Coverages for Bookkeepers

What coverages your bookkeeper insurance policy requires depends on your services, the clients you serve, and many other factors. However, most bookkeeper insurance policies include these vital coverages:

• Professional Liability Insurance: Also called errors and omissions (E&O) insurance, professional liability insurance covers any mistakes or errors you make that cause your clients financial harm. It also addresses allegations of professional negligence, misconduct, and failure to deliver a service as promised.

• General Liability Insurance: General liability insurance covers third-party bodily injuries and third-party property damages you cause by accident or during your usual operations. For example, if a client visits your office trips, falls, and is injured, general liability insurance may cover their medical and rehabilitation expenses that could run into thousands of dollars.

• Cyber Liability Insurance: Bookkeepers are typically responsible for exchanging and storing confidential information electronically. It is your responsibility to keep your clients’ financial and confidential information secure from the risk of a cyber-attack or an accidental data breach. Cyber liability insurance helps you recover following a breach by covering your software restoration costs, notification and credit monitoring fees, and legal advice expenses. You can also add cybercrime insurance to your policy to cover losses resulting from cybercrime, such as phishing or social engineering fraud.

• Legal Expense Insurance: Legal expense insurance provides financial support for legal counsel for various reasons, including legal advice if the CRA audits you or if you wish to appeal a decision made by the CRA. It also covers legal fees for statutory licence protection, employment or client contract disputes, and debt recovery.

• Commercial Property Insurance: If you own or lease a commercial office space or have a home office you work out of, protect it and your business contents with commercial property insurance. It covers damages and losses caused by fire, water, natural disasters, theft, and vandalism. Commercial property insurance may also include business interruption insurance to cover your lost income and overhead expenses following an insurable loss like a fire if you’re forced to close temporarily for repairs.

Get Customized Bookkeeper Insurance and Protect Your Assets

Getting the customized, comprehensive bookkeeper insurance policy you need to protect your finances and reputation is easy through Zensurance. We cover tens of thousands of bookkeepers, accountants, and financial professionals across Canada.

Fill out our online application for a free quote in less than five minutes.

Let our team of friendly insurance brokers get the comprehensive, low-cost policy you need and answer your questions. With Zensurance, you can expect personalized service, competitive rates, and a policy that meets your unique needs. Then, you can focus on serving your clients with confidence.