Is Travel Insurance Tax Deductible for Your Business?

Yes, travel insurance is generally tax deductible for self-employed individuals, freelancers, and small business owners. The IRS allows you to deduct ordinary and necessary business expenses, and travel insurance typically qualifies when used for legitimate business purposes.

Key Rules for Deducting Travel Insurance

Insurance premiums for business travel (trip cancellation, baggage loss) are deductible travel expenses.

How to Document Travel Insurance for Tax Purposes

Proper documentation is critical for any business deduction. For travel insurance, you should:

• Keep all receipts and invoices showing the amount paid
• Record the date of the expense and the business purpose
• If mixed-use, maintain a log showing business vs. personal usage
• Store records for at least 3 years (7 years for major purchases)

Source: IRS Publication 463. This information is for educational purposes only. Consult a qualified tax professional for advice specific to your situation.