Can Disability Insurance Be A Business Expense? 
The answer is yes , no and maybe . Yes , it can be tax deductible if the business owner purchases a Business Overhead Expense policy or BOE . This policy is specifically designed to pay bills and payroll not the owner direct . For this reason a BOE policy is tax deductible . On a straight disability income policy yes you can set it up with the help of your accountant to have the business pay the premiums . In most cases you do n't really want to do it that way . If you pay premiums with post tax dollars then benefits are tax free . If you pay premiums through the business then your benefits would be taxed as income . Think of it as do you want to pay taxes on the seeds or the harvest ? The premiums are much smaller in comparison to the benefits received there for a lot less tax will be paid . 