Can Disability Insurance Be A Business Expense? 
For a business owner it is possible to have the premium become a business expense . However the benefit then becomes taxable should you have to use it . A better way to structure the payment is to use an executive bonus strategy . Please speak with your accountant on how to set that up . Basically you are increasing your salary to cover the premium payment , you then add to your withholding to cover the additional taxes . This way the individual is paying the premium so the benefit will be tax free and the business receives the payroll deductions . For your employees , you can provide long term disability or short term disability as an employee benefit . The same rules apply however , taxes will be paid at some point , either on the premium or on the benefit . 