Types of deductible business insurance
- General liability insurance
- Professional liability / E&O insurance
- Commercial property insurance
- Workers' compensation insurance
- Business auto insurance
- Cyber liability insurance
- Business interruption insurance
- Product liability insurance
- Key person life insurance (if the business is the beneficiary)
What about personal insurance?
Personal insurance (your home, personal auto, personal life insurance) is not deductible as a business expense.
Exception: If you use your personal vehicle for business, the business-use percentage of your auto insurance is deductible under the actual expenses method. And self-employed health insurance has its own special deduction (see our health insurance guide).
IRS Reference
See IRS Publication 535 (Business Expenses), Chapter 6. Report on Schedule C, Line 15 (Insurance other than health).
See IRS Publication 535 (Business Expenses), Chapter 6. Report on Schedule C, Line 15 (Insurance other than health).
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