Most Montana accounting and financial services firms need a combination of: Errors & Omissions (E&O / Professional Liability) as the foundation, Cyber Liability given the volume of sensitive financial data handled, and either a Business Owner’s Policy (which bundles General Liability and Commercial Property) or separate GL and Commercial Property policies. Commercial leases in Montana typically require GL as a condition of occupancy. If you have employees, Workers’ Compensation is required by Montana law. Hired & Non-Owned Auto covers staff driving to client offices across the state, and a Commercial Umbrella adds excess liability above your GL for larger engagements with corporate or public-sector clients. The exact mix depends on your firm’s size, services, office arrangement, and what your client contracts specify.

No - this is the most common coverage gap accounting firms overlook. General Liability covers third-party bodily injury, property damage, and personal/advertising injury arising from your business operations (a client trips in your office, an employee damages a client's property during a site visit). It explicitly excludes financial loss caused by professional errors, omissions, or advice. That exposure belongs to Errors & Omissions (Professional Liability) insurance. A tax return with an error that triggers an IRS penalty, missed filing deadline, or disputed financial advice are all E&O claims - not GL claims. Most client contracts and professional engagements require both.

E&O policies are written on a claims-made basis - coverage applies when a claim is reported during the active policy period, but only for work performed after the retroactive date. The retroactive date is effectively how far back your policy reaches to cover past work. If you're buying E&O for the first time, we'll try to set the retroactive date as early as possible to cover your full professional history. If you're switching carriers, the retroactive date must never move forward - doing so creates a gap that leaves all work done between the old and new dates unprotected. This is one of the most consequential decisions in placing professional liability for accounting firms.

Accounting and tax firms store some of the most valuable personal and financial data that exists: Social Security numbers, bank account details, prior-year tax returns, payroll records, and financial statements. This makes them attractive targets for ransomware, phishing, and data theft. The IRS also imposes specific data security requirements on tax preparers under its Written Information Security Plan (WISP) mandate, and Montana's data protection laws require prompt notification of affected individuals when a breach occurs - a process that can itself cost tens of thousands of dollars. Cyber Liability insurance covers breach response costs, regulatory fines, ransomware, business interruption, and third-party claims from clients whose data was exposed.

Most small to mid-size accounting firms qualify for a BOP, which bundles General Liability and Commercial Property at a discounted rate compared to buying them separately. Accounting offices are generally classified as low-hazard businesses by insurers - there are few physical risks on-site and no manufacturing or heavy equipment - making them good BOP candidates. The BOP also includes Business Income coverage for revenue lost while the office is closed after a covered property loss. Firms that exceed BOP eligibility thresholds (typically based on revenue or building size) can obtain standalone GL and Commercial Property policies with equivalent or greater coverage.

Yes - Montana requires Workers’ Compensation for any business with one or more employees, including part-time staff. Non-compliance can result in fines and legal repercussions. Even a Montana accounting office carries real workers’ comp exposure: slip-and-fall injuries on shared staircases, ergonomic and repetitive-strain claims from extended keyboard work, and incidents when staff commute or drive to client sites. The Montana DOL actively audits employers. Sole proprietors without employees are generally exempt, but confirm your classification with counsel - Montana applies strict worker-status tests that can reclassify contractors as employees.

Yes, commonly. Commercial leases in Montana typically require $1,000,000/$2,000,000 General Liability limits with the landlord named as Additional Insured. Corporate client contracts often specify E&O limits of $1M or $2M, and some larger engagements require $5M. Government contracts and public-sector work frequently require proof of Cyber Liability as well. We review your lease and client contract insurance exhibits before binding so the policy is structured to comply - avoiding the situation where you're already under contract and discover a coverage gap. We issue Certificates of Insurance the same day coverage is bound.

Because E&O is written on a claims-made basis, coverage ends when the policy is cancelled - meaning claims reported after cancellation are not covered, even for work done while the policy was active. When retiring or closing a firm, purchase an Extended Reporting Period (tail coverage) endorsement, which extends the window during which claims can be reported for a defined period (typically 1-5 years, though unlimited tail coverage is sometimes available). Tail coverage is a one-time premium and is strongly recommended for any accounting professional who stops practicing. The cost depends on the firm's revenue, limits, and years of practice history.