Are you a director of your own limited company?

Employees don't typically pay business insurance. As an employee, business insurance is your employer's responsibility, not yours. You shouldn't be paying for professional indemnity or public liability insurance personally. If your employer requires you to have insurance, they should provide or fund it.

Is this professional indemnity (PI) insurance?

Professional indemnity insurance is generally deductible. Professional indemnity (PI) insurance is fully deductible. Many professions require PI cover, and even when not mandatory, it's a legitimate business expense that protects against claims of negligence or mistakes in your professional work.

Is this public liability insurance?

Public liability insurance is generally deductible. Public liability insurance is fully deductible as a business expense. This covers claims from third parties for injury or property damage caused by your business activities. It's essential for many businesses, especially those with premises or who work on client sites.

Is this other business insurance (contents, cyber, equipment, etc.)?

Business insurance is generally deductible. Business insurance premiums are fully deductible as a business expense. This includes professional indemnity, public liability, employer's liability, business contents, and other insurance required for your trade. The premiums reduce your taxable profit.

Does the insurance cover both business and personal use?

Apportion mixed-use insurance. If insurance covers both business and personal use (like a vehicle used for both), you can claim the business proportion. Calculate based on the split of business vs personal use and apply that percentage to the premium.

Is this personal insurance (life, health, income protection)?

Personal insurance is not a business expense. Personal insurance like life insurance, private health insurance, or income protection for yourself is not deductible as a business expense. These are considered personal expenditure. However, your limited company may be able to provide some of these as employee benefits with different tax treatment.

Can I Expense This?

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Can I Expense Business Insurance?

Find out if you can claim business insurance premiums like professional indemnity and public liability.

Last reviewed: January 2026

Question 1

ℹ️This tool provides general guidance only, not professional advice. Results depend on your specific circumstances.

Can I Expense Business Insurance?

1Question 1

Are you self-employed or a sole trader?

This includes freelancers and contractors not working through a limited company.

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Important disclaimer

This tool provides general guidance based on HMRC rules at the time of writing and is for informational purposes only. It does not constitute professional tax, legal, or financial advice. Tax rules change frequently and this information may be outdated or incomplete. No warranty is given as to accuracy. We accept no liability for any loss, damage, or consequences arising from reliance on this guidance. Use of this tool does not create a professional-client relationship. Your specific circumstances may differ significantly. Always consult a qualified accountant or tax advisor before making financial decisions.