Answers · UK 2025/26
Is business insurance tax deductible?
Yes. Premiums for insurance taken out wholly and exclusively for business purposes -- such as public liability, professional indemnity, and employers' liability -- are deductible expenses.
Full answer
Business insurance premiums are an allowable revenue expense for sole traders, partnerships, and limited companies provided the insurance is taken out wholly and exclusively for trade purposes. Qualifying policies include public liability insurance, professional indemnity insurance (compulsory for some regulated professions), employers' liability insurance (legally required if you employ staff), product liability insurance, and business interruption insurance. Personal life insurance or income protection where you are the beneficiary is not deductible as a business expense, though relevant life policies (where the company is the policyholder and the benefit is paid to the employee's dependants) can be an allowable company expense. Key person insurance may also be deductible depending on its purpose. Always check with an accountant for policies that serve a dual personal and business purpose.
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This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.