As we get closer to the end of the year and your business is looking for tax savings, remember that certain insurance premiums are tax deductible as a business expense. I have posted an article on that issue that explains the most common premium deductions.
It is often worthwhile, especially if you are a small business on a cash accounting system, to review those liability policies that have renewal dates close to the new year. For example, a professional liability policy may have a six-month premium of $1000 due on February 1, 2010. If that premium is paid in advance (assuming the insurer allows) by year end, then the realization of that deduction comes for the 2009 tax year. Assuming a real tax rate of 20-30%, that could be a savings of $200 to $300.
Health care savings accounts, certain life insurance and key man premiums, liability insurance, and other premiums paid by year end will help at tax time...a bare five months from now.