Errors & omissions quotes for tax preparers, CPAs, enrolled agents, and tax firms in California — compared across multiple A-rated carriers by an independent broker.
CA License #0G81238 · 25+ Years Experience · No Obligation
Tax preparers face professional liability claims for filing errors, missed deadlines, incorrect advice, miscalculated credits and deductions, and the audit exposure that follows a questionable return. A client alleging a missed deduction or an erroneous return can demand reimbursement of IRS penalties and interest — and defending even a baseless allegation can cost thousands of dollars in legal fees.
General business policies typically exclude these professional exposures. E&O insurance — sometimes called tax preparer liability insurance — is designed to cover them: allegations of negligence in the preparation or filing of a return, along with the defense costs that come with the claim.
California CTEC-registered preparers, enrolled agents, and CPAs with tax practices all face the exposure — even with careful review processes in place. One misread document or missed carryover from the prior year is all it takes for a claim to land on your desk.
All Preparer Types
CTEC-registered preparers, enrolled agents, CPAs with tax practices, and seasonal preparers
Solo & Firm Coverage
Coverage for individual preparers through multi-preparer tax firms
Audit & Penalty Exposure
Covers client demands for IRS and state penalties, interest, and rework after a filing error
Defense Costs Included
Legal defense for allegations of negligence, even when the claim is baseless
Premiums for tax preparer E&O typically run roughly $300 to $1,500+ per year for solo preparers, with multi-preparer tax firms generally higher. The exact number depends on the number of returns you file annually, the services you offer (individual returns vs. business returns, payroll, or IRS/state representation), the limits you choose — $1M per claim / $1M aggregate is a common starting point — and your prior claims history.
Never take a price on faith. The only way to know your actual number is to compare real quotes — which is exactly what we do, at no cost and no obligation.
One short form. Multiple A-rated carriers. A licensed broker reviewing your limits and terms before you buy.
Is E&O required for tax preparers in California?
CTEC registration requires a $50,000 surety bond, but that bond protects your clients — not you. E&O is not mandated by the state, yet it is strongly recommended: without it, demands for IRS or state penalties and interest, plus your own legal defense, are entirely out of pocket.
What does tax preparer E&O cover?
It covers alleged errors in the returns you prepare — missed deductions, incorrect credits, wrong filing status — as well as missed deadlines and extensions, incorrect advice, and client demands for IRS or FTB penalties, interest, and rework. Legal defense costs for claims of negligence are included.
How much coverage do I need?
It depends on your practice. $1M per claim / $1M aggregate is a common starting point. Higher limits are often appropriate for firms doing business returns, payroll, or representation work, where potential damages are larger. We help you compare limit options side by side.
Does PRIA cover tax firms with multiple preparers?
Yes. We quote both individual policies and group/firm policies covering multiple preparers — CTEC registrants, enrolled agents, and CPAs with tax practices. One form gets you multiple quotes from A-rated carriers.