General liability insurance belongs on Line 15, insurance.
Why line 15
Line 15 is insurance other than health, and a general liability policy covering the business against third party injury and property damage claims is the clearest case for it. The premium is deductible for the period the coverage runs, which is why a policy paid in December for next year does not all land this year. Health coverage for you is specifically excluded from this line and goes to Schedule 1 instead.
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 general liability insurance lands on Line 15 without you sorting it.
Start for freeWhat general liability insurance is confused with
- Schedule 1 line 17, schedule 1 line 17, self-employed health insurance
- Line 15 is insurance other than health, so your own medical coverage leaves Schedule C for the self-employed health insurance deduction.
- Line 16b, interest, other
- When you finance the premium monthly, the premium itself is line 15 and the finance charge on top of it is business interest on line 16b.
- Line 27a, other expenses
- The out of pocket deductible you pay on a claim is not a premium; it is the cost of the loss and belongs on the line matching what was damaged or in other expenses.
Examples that belong on line 15
- A $1,150 annual general liability policy for a contracting business
- $95 a month liability coverage required by a commercial landlord
- An umbrella policy sitting above your business liability limits
- A one-off $180 event liability certificate for a trade show booth
What does not belong here
- Your own health insurance, which never belongs on line 15
- Life insurance on yourself, which is not deductible when you or your family benefits
- The out of pocket deductible on a claim, which is not a premium
- Premiums covering a rental property you report on Schedule E
The limit that applies
A premium that buys coverage for more than twelve months is spread over the period the coverage runs rather than deducted in full in the year paid.
What to keep
Keep the declarations page naming the business as insured, the premium invoices, and the payment record. The coverage dates matter more than the payment date.
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 |
| professional liability insurance | Schedule C, Line 15 |
| workers' compensation insurance | Schedule C, Line 15 |
Related lookups
- Is my own health insurance a line 15 expense?
- Where does car loan interest go on Schedule C?
- Where do client gifts go on Schedule C?
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 general liability insurance lands on Line 15 without you sorting it.
Start for free