Can I Claim Business Insurance Premiums as a Business Expense in Guernsey?
Yes, business insurance premiums (professional indemnity, public liability, employers' liability, office contents, directors and officers, business interruption) are deductible as ordinary business expenses. Guernsey is a major insurance domicile so insurance options are extensive.
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What Revenue Service, States of Guernsey says
Premiums paid for insurance policies wholly and exclusively for the protection of the business are deductible. Life insurance on a key person may be deductible if the policy is for a trading purpose and the proceeds would be taxable income. The Revenue Service general guidance lists life assurance premiums among items that are not deductible for a personal business, so a policy needs a clear trading purpose. Private health cover for a director can be a benefit in kind.
When you can claim
- Professional indemnity insurance for service businesses
- Public liability and product liability insurance
- Employers' liability insurance (effectively mandatory in Guernsey when employing staff)
- Directors and officers (D&O) liability insurance
- Office contents and equipment insurance
- Business interruption insurance
- Cyber liability insurance
When you cannot claim
- Life insurance where the proceeds are capital and not trading receipts
- Personal health insurance for the director paid by the company (may be a benefit in kind for the director)
- Insurance on non-business assets
- Premiums that cover private items and are not apportioned
Good to know
Pro tip: Guernsey is home to a mature captive insurance industry. Owner-managed businesses can sometimes benefit from captive structures for group risk management, but this requires GFSC licensing and specialised advice. For standard SME insurance needs, mainstream policies are deductible straightforwardly.
Important: Employers must register with the Revenue Service and operate tax and social security deductions, so employer-related cover sits alongside the payroll set-up. Benefits in kind provided to employees are reported on a Benefits in Kind return, and the Revenue Service publishes a Benefits in Kind Guide for 2026.
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