Professional liability insurance belongs on Line 15, insurance.
Why line 15
Errors and omissions coverage, malpractice coverage and any other policy protecting you against claims arising from the professional work you sell is ordinary business insurance on line 15. It does not matter that a claim would be about your personal performance of the service; the risk insured is a business risk. Tail coverage bought when you wind the practice down is still a business premium.
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 professional liability insurance lands on Line 15 without you sorting it.
Start for freeWhat professional liability insurance is confused with
- Schedule 1 line 17, schedule 1 line 17, self-employed health insurance
- Malpractice insurance is liability coverage and stays on line 15; your own medical insurance is the one health policy that leaves Schedule C for the self-employed health insurance deduction.
- Line 23, taxes and licenses
- A state license or bar membership fee is taxes and licenses on line 23 even when the license is what requires you to carry the policy.
Examples that belong on line 15
- A $2,300 annual errors and omissions policy for a freelance software consultant
- $7,400 of medical malpractice coverage for a solo nurse practitioner practice
- A $650 real estate agent errors and omissions premium billed through the brokerage
- Tail coverage purchased for $1,900 when closing a therapy practice
What does not belong here
- Your own health insurance, which is a Schedule 1 deduction
- The license or certification fee that requires the coverage, which is line 23
- A fine or settlement you pay, which is not an insurance premium
The limit that applies
Premiums buying coverage for a period after year end are deducted over the coverage period, not in full when paid.
What to keep
Keep the policy declarations, renewal invoices, and the dates of coverage. For a claims-made policy keep the retroactive date documented.
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 |
| cyber liability insurance | Schedule C, Line 15 |
| general 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 professional liability insurance lands on Line 15 without you sorting it.
Start for free