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Bookkeeping risks placed with specialist UK insurers
BOOKKEEPER CONTRACTOR INSURANCE FOR UK PROFESSIONALS
Protect Your Clients’ Books, Your Reputation & Your Contract Income
As a self-employed bookkeeper or bookkeeping contractor, you handle client money, ledgers, bank reconciliations, VAT returns, payroll and financial records. A small error can lead to tax penalties, cash-flow problems or damaged client relationships.
Insure24 arranges specialist contractor insurance that protects bookkeepers against claims for errors, omissions, mis-postings and data issues – with policies recognised by accountants, SMEs and agencies across the UK.
Core Insurance Covers for Bookkeeper Contractors
Focused on bookkeeping, VAT, payroll, cloud accounting and client money handling risks.
Professional & Liability Protection
- Professional Indemnity – protects against mistakes in bookkeeping, reconciliations, VAT, payroll and reporting.
- Public Liability – injury or property damage caused while visiting client premises.
- Fidelity / Dishonesty extensions (where available) – protection against employee or subcontractor fraud.
- Legal Liability for Loss of Documents – paper or digital financial records in your care.
- Defence costs for professional complaints and allegations of negligence.
- Optional cover for business advisory services where you do more than pure bookkeeping.
Business, Equipment & Cyber Cover
- Office / Home Office Contents – PCs, laptops, printers, filing and record storage.
- Portable Equipment – laptops and devices used on client sites or when working remotely.
- Cyber & Data Insurance – phishing, ransomware, email compromise and data breaches.
- Legal Expenses – contract disputes, HMRC enquiries and employment issues.
- Directors’ & Officers’ (D&O) – for directors of bookkeeping limited companies.
- Optional business interruption extensions where relevant.
Who Is Bookkeeper Contractor Insurance For?
For independent bookkeepers and small bookkeeping practices working with UK clients.
Typical Bookkeeping Professionals
- Freelance bookkeepers working from home or client premises.
- Limited company bookkeepers working via accountants or directly for SMEs.
- Bookkeepers specialising in cloud platforms – Xero, QuickBooks, Sage, FreeAgent.
- Bookkeepers providing monthly/quarterly management accounts.
- Virtual / remote bookkeeping services.
- Bookkeepers working under contract with accountancy firms.
Service Areas & Add-On Roles
- VAT returns and Making Tax Digital support.
- Payroll and pension contribution processing.
- Credit control and cash-flow support for clients.
- Bookkeeping for contractors, trades, hospitality or ecommerce clients.
- Bookkeepers with multi-bookkeeper teams or assistants.
- Bookkeepers transitioning into broader finance support roles.
Key Risks for Bookkeeper Contractors
Why even careful bookkeepers need the right Professional Indemnity and business cover.
Financial & Compliance Risks
- Incorrect postings to ledgers or wrong allocation of income and expenses.
- Errors in VAT calculations or failure to apply the correct scheme.
- Late or incorrect submissions leading to HMRC penalties.
- Payroll mistakes – underpayments, overpayments or incorrect deductions.
- Inaccurate management reports used for business decisions.
- Perceived failure to highlight financial issues or cash-flow risks.
Data, Client & Contractual Risks
- Loss or compromise of client data (cloud or paper-based).
- Email compromise – invoices or bank details being intercepted.
- Disputes over the scope of work versus what the client expected.
- Alleged failure to follow instructions from accountants or business owners.
- Requirements from accountants or networks for specific PI / PL limits.
- Complaints that escalate into formal claims or legal action.
How Bookkeeper Contractor Insurance Is Arranged
Quick, practical and built around the way you actually work with clients and accountants.
1. Understand Your Bookkeeping Service & Clients
- We discuss the services you offer – bookkeeping only, or wider finance support.
- We look at your client base – sole traders, SMEs, ecommerce, charities, etc.
- We review any contract terms from accountants or networks.
- We check whether you handle payroll, VAT or act as agent with HMRC.
- We look at your systems – Xero, QuickBooks, Sage, spreadsheets and document storage.
2. Build a Cover Package Around Your Practice
- Professional Indemnity limits aligned to your client and contract size.
- Public Liability where you visit clients or work from shared offices.
- Options for cyber, legal expenses and D&O where relevant.
- Clear documents you can share with accountants and professional bodies.
- Support if your service grows from a one-person practice to a small team.
A client’s VAT return was submitted incorrectly before I took over their books. Insure24 helped me present the facts to the insurer clearly, and the Professional Indemnity cover gave both me and the client peace of mind.
Freelance Bookkeeper, UK
PROTECT YOUR BOOKKEEPING PRACTICE
& YOUR CLIENT RELATIONSHIPS
WHY BOOKKEEPERS CHOOSE INSURE24
- Specialist focus on financial and bookkeeping professionals.
- Understanding of accountant, franchisor and network requirements.
- Practical, plain-English guidance for sole traders and limited companies.
- Joined-up approach across PI, PL, cyber and legal expenses.
- Fast documentation for new clients, networks or practice registrations.
FREQUENTLY ASKED QUESTIONS
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Do bookkeepers really need Professional Indemnity insurance?
Yes. Even small mistakes in bookkeeping, VAT, payroll or record-keeping can lead to financial loss or
penalties for clients. PI is often expected by accountants, networks and professional bodies.
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What level of Professional Indemnity cover should a bookkeeper have?
Common limits range from £100,000 to £1m or more, depending on client size, services and any
requirements from accountants or networks. Insure24 will help you choose an appropriate limit.
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Does this policy cover cloud bookkeeping platforms like Xero or QuickBooks?
Yes. The policy is designed around modern bookkeeping practices, including cloud systems, bank feeds and
integrated apps, provided your activities fall within the declared business description.
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Will this cover me if a client accuses me of causing tax penalties?
If a client alleges that your error in bookkeeping, VAT or payroll led to penalties or losses, a PI policy
can respond to defend you and, where appropriate, cover compensation or settlement (subject to policy terms).
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Does this cover me working from home and at client premises?
Yes. Cover applies whether you work from a home office, dedicated office or at client sites, provided all
locations are within the policy’s territorial limits.
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Is cyber insurance really necessary for bookkeepers?
Bookkeepers often hold sensitive financial and personal data, and rely heavily on email and online
systems. Cyber cover can help deal with data breaches, hacked email accounts and ransomware incidents.
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Do I need Employers’ Liability if I use a part-time assistant?
If you employ anyone (including part-time or casual staff), you will usually need Employers’ Liability
by law. We will confirm your set-up and make sure your policy reflects it correctly.
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What happens if I stop bookkeeping – do I still need cover?
Because PI is “claims made”, you may still face claims after you stop trading. Run-off cover is often
recommended to protect you for work you carried out previously.
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How much does Bookkeeper Contractor Insurance cost?
Premiums are usually modest for most bookkeepers, but depend on fee income, services, PI limits and any
previous claims. We obtain quotes from insurers with a good appetite for professional risks.
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How do I get a quote for Bookkeeper Contractor Insurance?
Contact Insure24 with a brief outline of your bookkeeping services, client types and fee income.
We will review any existing cover and provide tailored contractor insurance quotes for your practice.