If you have a personal umbrella policy, your premiums are not typically tax-deductible. If you own a business and have an umbrella policy that supplements your other business liability policies, your premiums may be tax-deductible.
One particular gray area exists with owners of rental properties. If you own homes and rent them out, you are conducting a business transaction, but you can also include your rental properties under a personal umbrella policy. In this case, you may be able to deduct a portion of your premiums from your taxes.