by
on May 23, 2023
Business owners may be able to deduct business insurance premiums as ordinary and necessary expenses.
Navigating the tax code can be complex for businesses of all sizes and sectors. Specifically, business owners may question whether their business insurance is tax deductible. In general, the answer is yes. According to the IRS, business owners can deduct ordinary and necessary business expenses. This means that several types of commercial insurance premiums are deductible. Read on for more information.
The following types of business insurance premiums can typically be deducted:
Other types of insurance that can be deducted include employee health and life insurance premiums. Additionally, state unemployment insurance fund contributions may be deductible as taxes depending on applicable state laws.
Some business insurance premiums generally cannot be deducted, such as:
Funds placed in into a self-insurance reserve are also nondeductible.
As a whole, there are several nuances regarding tax filings and it’s vital for business owners to ensure they adhere to applicable regulations. Business owners should consult trusted tax professionals to learn more and determine which of their policies’ premiums can be written off.
For more small business insights and risk management guidance, contact us today
Get a free insurance quote from Defy Insurance: https://zurl.co/FsxS
The Top Mistakes Businesses Make When Choosing Insurance
How Liability Insurance Guards Your Reputation and Finances
Understanding the Insurance Claim Process for Business Owners
Become our partner and enjoy all the premium features.
Copyright © 2025 Defy Insurance