All expenses

For 1099 contractors & freelancers

Is business insurance tax deductible?

Yes

Yes, insurance that protects your business, like liability or professional (E&O) insurance, is fully deductible.

Where it goes on your return

Schedule C, line 15 (Insurance, other than health).

The details

General liability, professional liability or errors and omissions, business property coverage, and cyber insurance all count.

Health insurance is handled separately, as an adjustment to income on Schedule 1, not on Schedule C.

Car insurance is part of car expenses on line 9, and only under the actual expense method.

Records to keep

Policy invoices and the declarations page.

In Smart Deductions, this is suggested as Insurance (Schedule C line 15). You confirm it before it counts.

Sources

General information, not tax advice. For your specific situation, check with a CPA or Enrolled Agent.