New Tax Agent Startup, TPB Limit Review

A newly established tax agent and advisory practice came to Tank Insurance needing PI cover for a company providing tax agent services, advisory work and bookkeeping.

The declared activities included individual and business tax returns, financial statements, BAS and bookkeeping work, SMSF returns, tax planning and limited advisory work. The client also confirmed they did not provide financial advice.

For a startup tax agent, the limit conversation matters. The practice was projecting modest first-year revenue, but the declared revenue sat close enough to a threshold that we needed to check the cover level against the client's TPB obligations and future growth plans.

We compared lower and higher limit options, then worked through the practical difference between meeting a minimum requirement and choosing a limit that gave the new practice room to grow.

The risk was not hard because of claims history or unusual services. It was hard because early-stage tax agents often need to balance compliance, budget and future service scope at the same time.

We placed Keystone terms at around $650 for a $500,000 Professional Indemnity limit.

The result gave the new tax agent a clean starting point for PI cover, with the declared tax, BAS, bookkeeping and advisory services reflected in the placement process.

This is a good example for startup tax agents who are not sure whether to choose the lowest available limit or step up based on revenue, services and growth plans.