Can Disability Insurance Be A Business Expense? 
Disability Insurance will qualify for a business expense if the business pays for the policy and does not receive any of the benefit received . However the employee of the business will need to report any disability income benefits received as taxable income . The same holds true if a professional such as a physician or dentist is incorporated and has a salary or wage continuation plan in the corporate minutes . The corporation may pay for the policy but any benefits received are taxable as income . How premiums for coverage can be changed from year to year . For individual disability policies , in the event of a claim , whether benefits are taxed or not depends on how the premiums were paid during the year of claim . For group disability polices there is a three year look back for premiums . Overhead/practice expense disability policies are always tax deductible and benefits received by the business/practice are not taxable . 