Overhead Insurance

If you pay premiums for overhead insurance that is designed to cover the cost of your business overhead and expenses if you become disabled or incapacitated, those premiums are deductible as a business expense. While not a general disability insurance, overhead insurance is usually designed to help cover the costs of keeping your business open and operating if you become ill or are injured and unable to operate your business for an extended period of time.

Loss of Earnings

A loss of earnings insurance policy generally covers earnings that you lose if you become ill or disabled. The premiums for this type of disability insurance are not a business expenses and cannot be deducted on your income tax return.

Employee Hospital and Medical

Insurance premiums that you or your business pays to cover employees' hospital and medical expenses in the event they are ill or injured are deductible business expenses.

Employee Long-Term Care

Insurance premiums that you or your business pays to cover the cost of long-term hospitalization or care for employees who are ill or injured are allowed business deductions on your income tax return.