Are all insurance policies tax deductible?
No. Some insurance policies are deductible as professional expenses, while others are considered private costs. Deductibility depends on the type of insurance and the legal structure of your activity.
Insurance for self-employed professionals: which ones are tax deductible?
12/09/2025
Every self-employed professional naturally wants to be well insured against risks. Some insurance policies can also help reduce your tax burden. However, not all premiums are deductible. Which insurances can be recorded as professional expenses, and which are considered private costs? Here are the rules to help you build an insurance package tailored to your situation.
Tax-deductible insurance
Guaranteed income insurance: your financial safety net
What happens if you fall ill or have an accident that prevents you from working? Unlike employees, self-employed professionals do not have an employer who continues to pay their salary. Guaranteed income insurance protects you against this risk by paying a monthly allowance when you are temporarily unable to work.
The premiums for this insurance are fully tax deductible as professional expenses. However, if the insurance pays out an allowance, it is considered replacement income and will be taxable.
Bankruptcy insurance: protection in case of major difficulties
No one starts a business expecting bankruptcy. However, the risk exists. Bankruptcy insurance provides temporary compensation if you are forced to stop your activity.
The premiums are also fully deductible as professional expenses. As with guaranteed income insurance, any compensation received remains taxable.
Loss of revenue insurance: protecting your business
Some businesses depend heavily on one or more key individuals. Loss of revenue insurance provides compensation if a key person becomes temporarily unable to work due to illness or an accident.
The premium for this insurance is tax deductible. However, any compensation received must be included in your taxable income.
Non-deductible insurance
Hospitalisation insurance: personal protection
Hospitalisation insurance covers a large part of medical costs not reimbursed by health insurance. While this coverage can be very useful, the premiums are not tax deductible for a sole proprietorship. They are considered private expenses.
There is an alternative if you operate through a company. In that case, the company can take out the insurance as an extra-legal benefit for you and possibly your family. The premium then becomes deductible for the company.
Accident insurance: coverage for bodily harm
Accident insurance provides compensation in case of incapacity to work caused by an accident and may also cover certain medical expenses.
For a sole proprietor, the premiums are not tax deductible and are considered private expenses.
If you operate through a company, the situation may differ. The company can cover the premium and deduct it as a professional expense.
PIA Go! helps you structure your protection
A solid insurance coverage is part of a healthy business management strategy.
The PIA Go! platform allows you to correctly record insurance premiums in your accounting. Advice can also be provided to help you identify which insurances are truly relevant and tax-efficient.
This way, you benefit from appropriate protection while optimising the tax position of your business. The level of support depends on the plan you choose.
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Book your appointment today and discover how easy accounting can be.
FAQ
Is guaranteed income insurance deductible?
Yes. The premiums are fully deductible as professional expenses. However, any benefits paid out are taxable as replacement income.
Are bankruptcy insurance premiums deductible?
Yes. The premiums are fully deductible. Any compensation received is taxable.
Is loss of revenue insurance deductible?
Yes. The premium can be recorded as a professional expense. However, any compensation received must be included in taxable income.
Is hospitalisation insurance deductible?
No, not for a sole proprietorship. The premiums are considered private expenses and are therefore not tax deductible.
Is there an exception for hospitalisation insurance?
Yes. If you operate through a company, the company can take out the insurance as an extra-legal benefit for the director and their family. In that case, the premium becomes deductible for the company.
Note: PIA Go! is designed for sole proprietorships. Companies can turn to PIA Group for accounting support.
What about accident insurance?
For a sole proprietorship, the premiums are not deductible and are considered private expenses.
Does the situation change with a company?
Yes. A company can cover certain premiums and deduct them as professional expenses.
Note: PIA Go! is intended for sole proprietorships. Companies can be supported by PIA Group.
What should you remember from a tax perspective regarding deductible insurance?
Premiums are generally deductible, but any compensation received is taxable. When an insurance pays out, the financial compensation is therefore included in taxable income.
Can PIA Go! help manage your insurance?
Yes. The platform allows you to correctly record premiums in your accounting and identify tax-relevant insurance policies. The level of support depends on the plan you choose.
Written by Charlotte Backelandt , Marketing & Content Specialist,
reviewed by Tom Castelein, Personal Income Tax Expert.
reviewed by Tom Castelein, Personal Income Tax Expert.