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Liability Insurance - Deductible?

In summary, liability insurance deductible is the fixed amount that you are responsible for paying before your insurance coverage takes effect in the event of a claim or lawsuit. It is determined by your insurance provider and can vary depending on your coverage. While it is different from other types of insurance deductibles, you can typically choose your own deductible amount. It is important to have liability insurance deductible even if you have other types of insurance as it specifically covers claims and lawsuits against you or your business.
jasonmva
jasonmva
Silver Member
767
Here is a question for all of you seasoned PC consultants or those who are really good with the tax laws. The $2 each month we are charged for the liability insurance, that is tax deductible on your schedule C under insurance correct? I have taken a taxation course thorugh school but now I am confused.
 
Yes it is!!!
 
TIA.The $2 monthly liability insurance fee can be deducted as a business expense on your Schedule C. This is because it is a necessary and ordinary expense for running your business. However, it is always best to consult with a tax professional or accountant to ensure you are accurately reporting all of your business expenses.
 

1. What is liability insurance deductible?

Liability insurance deductible is the amount that you are responsible for paying out of pocket before your insurance coverage kicks in. It is a fixed amount determined by your insurance policy that you must pay in the event of a claim or lawsuit against you or your business.

2. How is the liability insurance deductible determined?

The liability insurance deductible is determined by your insurance provider and can vary depending on the type and level of coverage you have. Typically, the higher your deductible, the lower your insurance premiums will be.

3. Is liability insurance deductible different from other types of insurance deductibles?

Yes, liability insurance deductible is different from other types of insurance deductibles. For example, in car insurance, the deductible is the amount you pay in the event of a car accident. However, in liability insurance, the deductible is the amount you pay if someone sues you for damages or injuries.

4. Can I choose my liability insurance deductible?

Yes, in most cases, you can choose your liability insurance deductible. However, it is important to consider your financial situation and the level of risk your business faces before selecting a deductible amount. A higher deductible can lower your insurance premiums, but it also means you will have to pay more out of pocket in the event of a claim.

5. Do I need liability insurance deductible if I have other types of insurance coverage?

Yes, liability insurance deductible is a crucial part of your overall insurance coverage, even if you have other types of insurance. It provides protection specifically for claims and lawsuits brought against you or your business for injuries or damages caused by your products, services, or actions. Without liability insurance deductible, you may be responsible for paying the full amount of damages or legal fees out of pocket.

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