Can I Deduct Business Insurance Premiums?

Protecting your business with insurance is a sound decision, and the cost of that coverage is generally deductible. Business insurance premiums, including general liability insurance, commercial property insurance, professional liability, and workers compensation, are deductible as ordinary and necessary business expenses. Vehicle insurance on a car used for business is also deductible to the extent the vehicle is used for business. If you prepay a policy that covers more than 12 months, you may need to deduct the cost over the coverage period rather than all at once. Life insurance premiums are generally not deductible, even if the policy is tied to a business arrangement.