Cyber liability insurance belongs on Line 15, insurance.
Why line 15
Cyber liability is a business liability policy, so the premium is insurance other than health on line 15. The risk being digital changes nothing about the line. What the line does not cover is the software and monitoring you buy to reduce that risk, or the response costs you pay yourself after an incident.
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 cyber liability insurance lands on Line 15 without you sorting it.
Start for freeWhat cyber liability insurance is confused with
- Line 18, office expense
- A security or monitoring subscription is an office and software cost, not an insurance premium, so it sits on line 18 while the policy stays on line 15.
- Line 27a, other expenses
- Breach response costs you pay yourself, such as notification mailings or a forensic review, are other expenses rather than a premium.
Examples that belong on line 15
- A $1,050 annual cyber liability policy for a bookkeeping practice holding client bank data
- $60 a month cyber endorsement added to an existing business owner's policy
- A $2,500 premium for a $1,000,000 breach response limit a client contract demanded
- Coverage a hospital required before it would sign your vendor agreement
What does not belong here
- Antivirus and password manager subscriptions, which are not insurance
- A ransom payment, which is not a premium
- The IT consultant who hardens your systems, who is a professional service on line 17
What to keep
Keep the policy declarations and premium invoices, plus any client contract that required the coverage, which also supports the business purpose.
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 |
| business interruption insurance | Schedule C, Line 15 |
| commercial property 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 cyber liability insurance lands on Line 15 without you sorting it.
Start for free