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Should an employee consider their own E&O coverage?

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#1
Posts:
8
Joined:
26-Jan-2021 11:33am
Location:
USA
Sorry is this is the wrong subforum, but it seemed like the best choice.

I'm a new EA working my first tax job. I'm an employee at a small mom-and-pop firm, but I'm wondering if it would be prudent to purchase my own E&O coverage. I have assets from the sale of a business a few years ago I'm considering in this decision.

I have a basic understand of the concept of vicarious liability and being indemnified by my employer should I be sued, but I assume my employer's insurance serves my employer first. I'm wondering if I should have my own coverage that prioritizes me first.

Is this complete overkill? Coverage seems reasonably priced...
 

#2
Posts:
1987
Joined:
21-Apr-2014 11:24am
Location:
North Carolina
It should not be necessary. However, my insurance runs me about $350 per year. If that is in your budget, I would consider it.

I never carried my own insurance as an employee but my wife is a Registered Nurse. When she was a psychiatric nurse at state hospitals in two states, she carried it. She stopped it when she moved to telephonic nursing and has not bothered picking it back up now that she is employed in a bedside role where decisions are taken more slowly and in a team-like manner.

I am not sure if the insurance via NAEA is particularly suited to your needs as an employee. However, customer service is very good so it couldn't hurt to ask.
 


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