For an accountant, general liability is the better first choice — here’s why

If you're an accountant or part of an accounting firm, you might be wondering whether you need workers’ compensation or general liability insurance first. The short answer is: general liability is the better first choice for most accountants. But it depends on your specific business model and who is asking for proof of coverage. Here’s what you need to know to make the right decision for your accounting business.

Accountants face a unique set of exposures. Unlike trades that handle physical products or construction, your business primarily involves intellectual work and client interactions — which means the risk of bodily injury or property damage to third parties is often a more immediate concern than employee injury. That makes general liability insurance a more likely starting point for most accounting businesses.

What does general liability cover for an accountant?

General liability insurance helps protect your accounting business from claims related to bodily injury or property damage caused by your operations. For example, if a client slips and falls in your office, or a visitor's laptop is damaged in your reception, general liability can help cover legal fees and settlements. A misdirected email full of client data is a different problem and a different line — that is where cyber cover and professional liability belong.

Accountants also commonly face claims related to advertising injury, such as if a competitor alleges that your marketing materials mislead or infringe on their intellectual property. General liability covers these types of exposures too.

Many accountants find that general liability is the most immediately useful coverage when engaging with clients, especially if you work in an office or with physical assets like office space or equipment. It’s also often a prerequisite for entering into contracts or using shared office spaces.

When would workers' compensation be needed first?

Workers' compensation is mandatory in most states if you have employees. It provides coverage for work-related injuries and illnesses. If your accounting business employs people — whether full-time, part-time, or contract — workers' compensation should be a priority. However, for many accountants who work solo or in a small firm with independent contractors, workers' compensation may not be an immediate need.

Some states also require workers’ compensation for independent contractors in certain roles, so check your state requirements. But for the average accountant who doesn’t have full-time staff, general liability is more likely to be required first by clients, landlords, or other third parties.

Who is more likely to ask for proof of general liability?

General liability is the type of insurance most often requested by accounting clients, landlords, or business partners. For example, if you provide accounting services to a business or organization, they may ask for proof of general liability to ensure you can handle any potential claims related to your services. Landlords may also require general liability as part of a lease agreement.

In practice, many accounting businesses find that general liability is the most common type of insurance requested by third parties — and it’s often a prerequisite for working with clients or using shared office spaces. This makes it a practical first step for most accountants, especially those in a physical office or those handling client meetings in person.

How to decide which insurance to get first

Here’s how to determine which insurance to get first for your accounting business:

  • If you have employees, check your state law — you may need workers' compensation before any other coverage.
  • If you work in a physical office, expect to be asked for general liability proof by landlords or clients.
  • If you handle client data, consider adding cyber liability later, but general liability is more common for most accounting services.
  • If you provide professional advice, you may eventually need professional liability (E&O) insurance — but general liability is more likely to be needed first.

In most cases, general liability insurance is the best starting point for an accountant. It addresses the most common exposures and is often required before clients or landlords will agree to a partnership.

How to get a quote for general liability or workers' compensation

Getting coverage for your accounting business is easier than you might think. With a marketplace like CoRisk, you can start your quote in just a few steps. Our platform connects you with top-rated carriers so you can compare options and find the right coverage for your business — all in one place. Whether you need general liability to meet a client requirement or workers' compensation for your employees, we can help you get started quickly.

By using a multi-carrier platform, you’re not locked into one insurer — you can see what different providers offer and choose the coverage that best fits your needs. This is especially helpful for accountants who may not have a lot of experience shopping for insurance but still want to make an informed decision.

Why a decision matters for your business model

Choosing between general liability and workers' compensation is not just about ticking a legal requirement — it’s about aligning your coverage with how your business operates and who is asking for proof. For example, if you operate entirely remotely and have no employees, workers' compensation may not be necessary at all. But if you work with physical office space or meet clients in person, general liability will be more relevant.

It’s also worth noting that your business model may evolve. Starting with general liability gives you a solid foundation and allows you to add other coverages — like workers' compensation or cyber liability — as your business grows or your client base changes. This kind of flexibility is essential for small businesses like accounting firms that may scale up or shift their operations over time.