Is Business Owner's Policy (BOP) Tax Deductible? Yes — 100% Deduction Guide
100%
Deductible
Line 15
Schedule C
Insurance (not health)
Category
$300–$1,200/yr
Typical cost
A Business Owner's Policy (BOP) bundles general liability and property coverage into one affordable package—and the good news is that premiums are fully deductible. If you're self-employed or run a single-member LLC, you can deduct the full cost of your BOP premiums on Schedule C, reducing your taxable business income dollar-for-dollar.
Who qualifies?
Self-employed individuals, freelancers, sole proprietors, and single-member LLC owners who carry business liability or property insurance qualify for this deduction. You must have an active business and the BOP must cover business operations (not personal assets) to claim it.
How to claim it
- 1 Gather your BOP premium statements or insurance declarations showing the annual cost ($300–$1,200 typical range).
- 2 Report the total BOP premium amount on Schedule C, Line 15 (Insurance — not health).
- 3 Keep all insurance documents and receipts for IRS audit support; retained records should show policy dates, coverage types, and amounts paid.
Pro tip
Bundle your general liability and property coverage into a single BOP rather than purchasing policies separately—it's often cheaper and easier to track as one deductible line item. Always confirm your insurer lists your business name and structure (LLC, sole prop, etc.) on the policy to avoid IRS challenges.
Source: IRS Publication 535: Business Expenses
Judy automatically tracks Business Owner's Policy (BOP)
Connect your business bank account and Judy categorizes Business Owner's Policy (BOP) charges to Insurance (not health) (Line 15) — no spreadsheets, no manual entry. Get a free 30-day audit first, then subscribe.
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