# Can I claim Business Insurance Premiums as a business expense in Guernsey?

**Yes, fully claimable.** 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.

Typical amount: £500 to £10,000 per year for a typical SME; captive insurance premiums may be substantially higher

## 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.

Source: https://www.gov.gg/article/1757/Companies

## Related expenses

- [Professional Services (Accountants, Lawyers, Consultants)](https://accounts-os.com/gg/expenses/professional-services-gg)
- [Office Rent and Co-working Space](https://accounts-os.com/gg/expenses/office-rent-gg)