Business interruption insurance belongs on Line 15, insurance.
Why line 15
A policy that replaces business income after a covered shutdown protects the business, so the premium is deductible insurance on line 15. Note what it is not: coverage that replaces your own earnings because you personally cannot work is disability coverage, and that premium is not deductible. The question to ask is whether the policy insures the income of the business or your own ability to work.
Stop looking up lines one at a time. ClaryBook totals your year into an IRS Schedule C worksheet in form order, Part I and Part II line by line, so business interruption insurance lands on Line 15 without you sorting it.
Start for freeWhat business interruption insurance is confused with
- not deductible, not deductible
- If the policy pays out because you personally are sick or injured, it is disability coverage on yourself and the premium is not deductible.
- Line 27a, other expenses
- Losses the policy does not cover are deducted on the line matching what was lost, never added to the insurance total on line 15.
Examples that belong on line 15
- A $420 a year business income endorsement on a restaurant package policy
- $1,300 for twelve months of business interruption coverage on a print shop
- Extra expense coverage for renting temporary premises after a fire
- Contingent business interruption coverage tied to one large supplier
What does not belong here
- Owner disability coverage replacing your personal earnings
- Insurance proceeds you receive, which are income rather than a deduction
- Repairs after the covered event, which are their own expense
What to keep
Keep the policy wording showing what triggers payment, the premium invoices, and any claim correspondence. The trigger wording is what separates this from owner disability coverage.
Other expenses on line 15
| Expense | Line |
|---|---|
| a business owner's policy | Schedule C, Line 15 |
| a surety or performance bond premium | Schedule C, Line 15 |
| commercial property insurance | Schedule C, Line 15 |
| cyber liability insurance | Schedule C, Line 15 |
| general liability insurance | Schedule C, Line 15 |
| professional liability insurance | Schedule C, Line 15 |
| workers' compensation insurance | Schedule C, Line 15 |
Related lookups
Sources
This page explains how Schedule C lines work. It is general information, not tax advice for your situation. If an expense is large or the answer turns on a fact about your business, confirm it with your tax preparer.
Looking for a different expense? The full Schedule C line lookup has every line from 8 to 27 with the expenses that belong on each, and Schedule C expense categories walks the whole form in order.
Stop looking up lines one at a time. ClaryBook totals your year into an IRS Schedule C worksheet in form order, Part I and Part II line by line, so business interruption insurance lands on Line 15 without you sorting it.
Start for free