If you're starting an accounting practice in Florida or growing your existing CPA firm, understanding your insurance requirements isn't just about compliance—it's about protecting everything you've built. Florida has specific rules that kick in depending on how you structure your business, and missing these requirements can put your license at risk. Let's break down exactly what you need to know about insurance requirements for accounting and CPA businesses in the Sunshine State.
Professional Liability Insurance: When It's Required
Here's what catches most people off guard: if you're a solo CPA running your own practice, Florida doesn't require you to carry professional liability insurance. But the moment you incorporate, form an LLC, or create a partnership with other CPAs, everything changes. Under Florida Administrative Code Rule 61H1-26.002, CPA firms must maintain at least $50,000 per licensed professional in combined net assets and professional liability insurance coverage.
This requirement scales with your team. If you have three CPAs and one licensed professional employee in your firm, you'd need $200,000 in combined coverage or capitalization. The good news? The requirement caps at $2 million regardless of how large your firm grows. So whether you have 10 professionals or 100, you're not on the hook for an unlimited amount.
You've got flexibility in how you meet this requirement. You can carry actual professional liability insurance, maintain sufficient firm capitalization with assets exceeding liabilities, use a letter of credit from a bank, or combine these approaches. Many firms find that carrying insurance makes the most sense because it provides actual protection, not just paper compliance. Professional liability insurance covers claims made against your firm for errors, omissions, or negligence in providing accounting services—exactly the scenarios that could financially devastate an uninsured practice.
Workers' Compensation: The Four-Employee Threshold
Workers' compensation is one of those insurance requirements that sneaks up on growing firms. In Florida, if your accounting business has four or more employees—whether they're full-time, part-time, or a mix—you're required to carry workers' comp coverage. That includes administrative staff, not just licensed professionals. If you're a construction accounting specialist with even one employee, the threshold drops to just one employee due to construction industry rules.
The silver lining? Accounting firms fall into low-risk classification codes for workers' compensation, which means your premiums will be significantly lower than businesses in physically demanding industries. Office-based professional services consistently rank among the cheapest categories for workers' comp coverage. And 2026 brings even better news: Florida workers' compensation rates are dropping for the tenth consecutive year, with an overall statewide average decrease of 6.9%. Office and professional services are seeing continued marginal decreases, keeping overhead costs manageable.
One important note for partners and corporate officers: you can often exempt yourself from workers' compensation coverage in Florida by filing the appropriate paperwork. This can reduce your premium if you're a small firm just crossing that four-employee threshold. However, think carefully about whether this makes sense for your situation—workers' comp provides real protection if you're injured and unable to work.
General Liability: Not Required But Essential
Florida state law doesn't mandate general liability insurance for accounting businesses, but that doesn't mean you can skip it. Here's the reality: if you lease office space, your landlord will almost certainly require proof of general liability coverage before you sign the lease. If you work with business clients on contracts, they'll often require you to carry minimum coverage amounts—typically $1 million per occurrence is standard.
General liability covers the basic risks of running any business: slip-and-fall accidents in your office, property damage you accidentally cause, personal injury claims, and advertising injury. Think of a client who trips over a computer cable in your office and breaks their ankle, or accidentally damaging a client's property while visiting their location for an audit. These aren't professional service errors—they're general business hazards that professional liability policies don't cover.
The good news is that general liability insurance for accounting firms is affordable. Most small accounting businesses in Florida pay around $111 per month for coverage. Because your work is office-based with minimal physical risks, you'll fall into lower-rated categories compared to businesses with higher premises-related hazards. Many insurance carriers offer Business Owner's Policies (BOPs) that bundle general liability with property coverage at a discount, which can be a cost-effective option if you have office equipment, furniture, and computers to protect.
Additional Coverage Considerations for 2026
The insurance landscape for accounting professionals is evolving rapidly. Cyber liability coverage has gone from optional to nearly essential for most CPA firms. If you store client tax returns, financial statements, or personally identifiable information electronically—and who doesn't in 2026—a data breach or ransomware attack could expose you to massive liability. Many professional liability policies now include some cyber coverage, but it's worth reviewing your limits carefully given the increasing sophistication of cyberattacks targeting professional services firms.
Employment practices liability insurance (EPLI) is another coverage that becomes important as you grow your team. This protects your firm against claims of wrongful termination, discrimination, harassment, or other employment-related issues. Once you have employees, you're exposed to these risks regardless of how carefully you manage your practice. Commercial auto insurance is required if your firm owns vehicles, and even if you use personal vehicles for business purposes, you should review whether your personal auto policy adequately covers business use.
How to Get Started With Your Coverage
Start by assessing your current business structure and employee count. If you're a sole proprietor with fewer than four employees, your mandatory requirements are minimal—though you should still strongly consider professional liability coverage given the nature of accounting work. If you're incorporated or have partners, calculate how much coverage you need to meet the Florida Board of Accountancy's requirements based on your number of licensed professionals.
Work with an insurance agent who specializes in professional liability coverage for accountants and CPAs. The Florida Institute of CPAs offers insurance programs specifically designed for members, which can be a good starting point. Get quotes from multiple carriers and compare not just price but coverage details—professional liability policies can vary significantly in what they cover and exclude. Look for policies that include coverage for disciplinary proceedings with your state board, as defending against these can be expensive even if you've done nothing wrong.
Review your coverage annually, especially if your firm is growing or your service offerings are expanding. Adding forensic accounting services, litigation support, or financial planning to your practice can change your risk profile and may require additional coverage or endorsements. Keep your insurance certificates current and readily accessible—you'll need to provide proof of coverage when registering your firm with the Florida Board of Accountancy, signing office leases, and responding to client contract requirements. Staying properly insured isn't just about following the rules; it's about protecting your professional reputation and financial future.
