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Insurance for Accountants, CPAs, and Bookkeepers in Washington and Idaho

Accountants and bookkeepers need professional liability for errors in returns, financial statements, and advice, and cyber coverage because client tax and financial data is a top target. Tax preparers fall under the FTC Safeguards Rule. Neither Washington nor Idaho requires CPA firms to carry malpractice insurance, and bookkeeping and tax preparation do not require a CPA license.

By Trella Commercial · Updated October 5, 2026

The short version

  • Professional liability is the core policy: errors in returns, missed deadlines, bad advice, and financial statement work.
  • Cyber is close behind. Client tax and financial records are high-value targets, and tax preparers must follow the FTC Safeguards Rule, including breach notice to the FTC for 500 or more consumers. See cyber for law and CPA firms.
  • No insurance mandate: Washington's Board of Accountancy may require firm insurance by rule but has not; Idaho has no requirement.
  • No license for bookkeeping or tax prep: both states restrict CPA titles and attest work, not bookkeeping or tax services.
  • Wire fraud is a real exposure when you move client money or your email is used to send fake instructions.

Licensing at a glance

WashingtonIdaho
CPA firm licenseRequired for attest and compilation work (RCW 18.04.195)Firm registration required to provide attest or compilation services or use CPA titles (Idaho Code 54-214)
Malpractice insuranceNot required; the Board may require it by rule but no such rule was found (RCW 18.04.055)Not required
Bookkeeping and tax servicesAllowed without a license (RCW 18.04.345)Allowed without a license (Idaho Code 54-226)
Client confidentialityLicensees may not disclose confidential client information without consent (WAC 4-30-050)Board rules apply

Coverage for an accounting practice

CoverageWhat it handles
Professional liabilityErrors in returns, statements, advice, and missed deadlines
CyberClient data breaches, ransomware at tax season, fake wire instructions
CrimeEmployee theft of client funds
Business owners policyOffice space, equipment, lost income
Employment practicesStaff claims

For one firm's experience, see the CPA firm story.

Common questions

Are CPAs required to carry malpractice insurance in Washington or Idaho?

No. Washington's Board of Accountancy has authority to require professional liability insurance by rule, but no such rule was found, and Idaho has no requirement.

Do bookkeepers need a license in Washington or Idaho?

No. Both states allow unlicensed people to provide bookkeeping and tax services; only CPA titles and attest and compilation work are restricted.

Do tax preparers need cyber insurance?

Not by law, but the FTC Safeguards Rule requires a written security program and FTC notice for breaches affecting 500 or more consumers, and cyber insurance pays for responding.

Sources

This page is general information. Laws were checked against primary sources in October 2026.

The coverage we usually build for accountants and bookkeepers

Professional Liability (E&O)

Claims that your advice, work, or service cost a client money. Excluded from every BOP and GL policy.

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Cyber Liability

Ransomware, data breaches, and wire fraud. The claim small businesses are now most likely to file.

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Business Owners Policy

Property, liability, and lost income bundled into one policy. The right starting point for most small businesses.

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Employment Practices Liability

Wrongful termination, discrimination, harassment, and retaliation claims from employees and applicants.

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General Liability

Injury and property damage claims from customers, clients, and the public. The policy most contracts require.

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What our clients say

“As a professional services firm, we needed solid professional liability and general liability that would satisfy client contract requirements. Trella took the time to understand our exposure, compared options across their carrier panel, and delivered a tailored commercial program without the usual sales pressure. Responsive and knowledgeable.”
Annunay A. · Seattle, WA
“We’re a growing consulting firm and our liability needs kept changing. Trella helped us get the right professional and general liability limits without overbuying. They checked in again six months later when we hired more people. That follow-up mattered.”
Rick A. · Woodinville, WA

Stories from professional services

Illustrative stories: what each business came in for, and what the review found.

Professional services

A CPA Firm Bought E&O for Tax Mistakes. The Bigger Risk Was a Fake Email.

A twelve-person accounting firm had professional liability for errors in its work. The review found a claims-made trap in its switch of carriers, and a wire fraud exposure its E&O policy was never designed to cover.

E&OCyberEPLILegal services

A Small Law Firm's Trust Account and the Email That Almost Emptied It

A four-attorney firm handling real estate closings assumed its malpractice policy covered a stolen wire. The review found that malpractice, cyber, and crime coverage each covered a different piece, and the firm had only one of them.

CyberE&OBOPStaffing

A Staffing Agency Has Two Sets of Employees Who Can Sue It

A staffing firm placing warehouse workers had an EPLI policy for its own office staff. The review found that its real exposure was the hundreds of temporary workers it placed, and the client companies they worked for.

EPLIStop-gapE&O

More professional services we insure

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