Bookkeeper & Tax Agent Startup

A newly registered tax agent and bookkeeper in Greater Sydney was launching their practice with less than $100,000 in projected annual revenue and no staff. Budget was the primary concern.

The client initially asked about the minimum $250,000 PI limit to keep costs as low as possible. They wanted to understand the cheapest path to meeting their obligations as a registered practitioner.

Rather than defaulting to a single recommendation, we obtained quotes across five insurers at both $1M and $250K PI limits. This gave the client visibility across the full range of options available for their risk profile.

For $1M PI cover, quotes ranged from around $350 to over $660. At the $250K minimum, quotes ranged from around $290 to $350. The spread in pricing highlighted that different insurers price the same risk very differently, even for a straightforward startup.

We presented the full market comparison to the client, including the trade-offs between limit levels. The $250K limit offered savings of roughly $60 to $100 compared to $1M, but meant significantly less protection if a claim arose.

For a startup with limited revenue, the decision came down to weighing upfront cost savings against the potential exposure from a data error, payroll mistake, or BAS lodgement issue. We laid out the numbers without pushing a particular option.

The client received a transparent comparison across five insurers and two limit options, enabling them to choose coverage based on a complete picture of the market rather than a single quote.

For a startup bookkeeper and tax agent, having that level of visibility from day one set the foundation for informed insurance decisions as the practice grows. As revenue increases and services expand, having a broker who understands their history makes future renewals and adjustments straightforward.