General liability insurance provides coverage for accidents and injuries involving third parties.
Take, for example, a situation where a customer stumbles over wiring in your store during renovation; this insurance would cover medical expenses and potential legal actions.
Think of it as the cornerstone of your business protection, essential regardless of the industry you operate in.
Without it, legal claims could significantly impact your financial resources.
Possessing this insurance not only protects your assets but also fosters trust with clients, potentially opening doors to enhanced opportunities.
Is General Liability Insurance Tax-Deductible?
The IRS considers payments for general liability policies as business expenses, making them generally eligible for tax deductions.
It is vital to keep a comprehensive record of all payments associated with your policy, as this data is crucial for your annual tax filing.
Nevertheless, it’s worth highlighting the importance of seeking advice from an accountant or tax expert when managing your business taxes.
Their specialized knowledge ensures accurate treatment of your general liability policy payments as deductibles.
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Is General Liability Coverage Based on Payroll?
The premium for your general liability coverage is determined by the total payroll costs associated with your business.
When requesting quotes from Simply Business, it is vital to provide a precise estimation of your yearly payments to both employees and subcontractors.
Even if it’s a rough estimate, furnishing this data enables us to evaluate and recommend the most suitable general liability policy tailored to your requirements.
T Bag is an insurance expert with a degree in actuarial science from the University of Hartford. He has over 10 years of experience in risk management, product development, and pricing. He is a certified actuary and a member of the American Academy of Actuaries. He is passionate about helping clients find the best insurance solutions for their needs and goals. He is looking for new opportunities in the insurance field.