Can businesses deduct insurance premiums on taxes?

Deducting Business Insurance Premiums on Taxes in New Hampshire

In New Hampshire, businesses can generally deduct insurance premiums as a business expense when filing taxes. This deduction helps reduce taxable income, improving overall financial management.

Types of Deductible Insurance Premiums

• General Liability Insurance: Premiums for protecting the business against claims of injury or property damage.
• Property Insurance: Coverage for business property and equipment premiums are deductible.
• Workers' Compensation Insurance: Mandatory for most New Hampshire employers, premiums are deductible as a business expense.
• Professional Liability Insurance: Also known as errors and omissions insurance, premiums can be deducted.
• Health Insurance for Employees: Premiums paid by the business for employee health plans are deductible.

Operational Considerations

• Recordkeeping: Maintain detailed records of all insurance premium payments to support deductions during tax filing.
• Payroll Integration: For employee-related insurance like health or workers' compensation, coordinate with payroll processes to ensure accurate reporting.
• Compliance: Ensure insurance policies meet New Hampshire requirements, especially for workers' compensation and unemployment insurance.
• Bookkeeping: Categorize insurance premiums correctly in accounting systems to streamline tax reporting and financial analysis.

As of 2026, businesses should consult with a tax professional to confirm eligibility and proper classification of insurance premium deductions, as individual circumstances and tax laws may evolve.