For which type of insurance are premiums deductible to the employer as an ordinary business expense?

When considering which type of insurance premiums are deductible to the employer as an ordinary business expense, it is essential to focus on the treatment of different insurance types under the Internal Revenue Code.

Accidental Death and Dismemberment (AD&D) insurance premiums are typically deductible by the employer. This is because they are considered a type of employee benefit that serves the purpose of providing financial protection in the unfortunate event of an employee’s accidental death or serious injury. As part of an employer's expense for providing benefits to employees, the premiums paid for AD&D insurance can be recorded as an ordinary business expense, which reduces the taxable income of the employer.

On the other hand, while life insurance premiums can be deductible, that is usually limited to instances where the employer is not the beneficiary of the policy. Health insurance premiums and long-term disability insurance are also often deductible, with certain rules governing their deductibility. However, in the context of the specific question asking about primary deductibility as an ordinary business expense, AD&D is the standout choice, as it directly relates to casualty benefits per employee and fulfills specific IRS guidelines for business expense deductions.

Thus, AD&D insurance premiums are considered fully deductible as part of the employer's benefits package, categorizing them firmly as an