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General Liability Insurance for Accountants in Pennsylvania: State Requirements and Average Costs
General liability insurance for accountants in Pennsylvania: when you need it, what it covers, and average costs.
Written by
Editorial Team
Reviewed by
Robert Okafor
General liability insurance is not required by Pennsylvania law for accountants, but commercial landlords and corporate clients in Philadelphia, Pittsburgh, and across the state routinely require it before signing a lease or engagement letter. GL covers the physical risk layer of your practice: client injuries on your premises, property you accidentally damage, and the legal defense costs that follow. It does not cover professional mistakes, which fall under errors and omissions (professional liability) insurance. Pennsylvania accountants typically carry both, and GL premiums are above the national average, reflecting the Philadelphia litigation environment.
Quick Answer
Estimated general liability premiums for Pennsylvania accountants:
| Practice Size | Estimated Annual GL Premium |
|---|---|
| Solo accountant | $375 to $750 per year |
| Small firm (2 to 10 staff) | $700 to $1,550 per year |
Pennsylvania GL premiums are above the national average, reflecting the Philadelphia litigation environment.
What GL Covers for Pennsylvania Accountants
Third-Party Bodily Injury
Covers claims from clients or visitors who are injured on your premises. Coverage applies to third parties who are not employees.
Third-Party Property Damage
Covers damage to a client's belongings that occurs while they are in your office, or damage you cause to a client's property during an off-site visit.
Defense Costs
GL pays attorney fees, court costs, and settlement amounts for covered claims, even if the claim turns out to be unfounded.
What GL Does Not Cover for Pennsylvania Accountants
Professional Errors
If a client claims a mistake in your tax return, audit, or financial statement caused them financial harm, GL will not respond. Professional liability (E&O) insurance covers that exposure.
Employee Injuries
Pennsylvania requires workers compensation for all employers with employees. GL does not cover employee injuries. Accounting firms with any employees must carry workers comp separately.
Your Own Property
GL covers damage to clients' property, not your own equipment or computers. A BOP or commercial property policy covers your own business assets.
Cyber Incidents
GL does not cover data breaches. Pennsylvania's Breach of Personal Information Notification Act imposes breach notification obligations. A cyber liability policy covers breach response costs.
Pennsylvania Licensing Requirements
The Pennsylvania State Board of Accountancy licenses CPAs in Pennsylvania. The Board does not require general liability insurance as a condition of licensure. GL requirements, when they exist, come from commercial landlords or client contracts.
Pennsylvania-Specific Considerations
Philadelphia Litigation Environment
Philadelphia-area accounting firms face above-average GL exposure due to the plaintiff-favorable environment in Philadelphia County courts. Firms based in Philadelphia should carry GL limits of at least $1 million per occurrence and $2 million aggregate, and consider umbrella coverage above those limits.
Philadelphia and Pittsburgh Client Requirements
Philadelphia corporate clients in healthcare, financial services, and law routinely require accounting firms to carry GL with minimum limits and to name the client as an additional insured. Pittsburgh clients in technology and higher education have similar requirements. Review client contracts carefully before signing.
Pennsylvania State Government Contracts
Pennsylvania state agency contracts require vendors to carry GL with specified minimum limits. Review each solicitation for the specific insurance requirements before bidding.
Commercial Lease Requirements
Pennsylvania commercial landlords typically require GL with minimum limits of $1 million per occurrence. Some Philadelphia and Pittsburgh landlords require $2 million per occurrence.
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Frequently Asked Questions
Does Pennsylvania require accountants to carry GL insurance?
No. The Pennsylvania State Board of Accountancy does not require GL as a condition of licensure. The requirement, if any, comes from landlords or client contracts.
What GL limits do Philadelphia landlords typically require?
Most Philadelphia commercial leases require $1 million per occurrence with a $2 million aggregate. Some Class A buildings require $2 million per occurrence.
Does GL cover professional mistakes for a Pennsylvania accountant?
No. GL excludes professional errors. Professional liability (E&O) insurance covers claims from clients who allege your advice or work caused them financial harm.
How much does GL cost for a Pennsylvania accountant?
Pennsylvania accountants typically pay $375 to $750 per year for a solo GL policy.
Can I bundle GL with commercial property coverage in Pennsylvania?
Yes. A business owners policy (BOP) bundles GL with commercial property coverage and is available from most carriers that write small business policies in Pennsylvania.
Disclaimer
This article is for informational purposes only and does not constitute insurance or legal advice. Coverage details and costs vary by carrier and individual circumstances. Consult a licensed insurance agent and attorney for guidance specific to your situation.
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This article is for informational purposes only and does not constitute insurance advice. Coverage, requirements, and costs vary by state, carrier, and individual circumstances. Consult a licensed insurance agent for guidance specific to your situation.
About the author
Commercial Insurance Editorial Team
The Dareable editorial team covers commercial insurance for small business owners. Every guide is fact-checked by a licensed CIC or CPCU before publication.
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