Can Insurance Agents Deduct Their E&O Insurance?

Yes — Errors & Omissions (E&O) insurance is fully deductible as an ordinary business expense for independent insurance agents, since it exists specifically to protect your ability to do business. If you sell insurance as an independent agent (captive or independent), E&O coverage protects you against claims that you gave incorrect advice or made a mistake on a policy. Because it's required to legally operate in most states and directly tied to producing income, the IRS treats the full annual...