A. Yes. To be deductible, insurance premiums must be to the benefit of the business for a business purpose and they can’t identify select individuals. In Pub. 535, Business Expenses, the IRS says that certain types of insurance premiums are generally deductible, including “overhead insurance that pays for business overhead expenses you have during long periods of disability caused by your injury or sickness.” However, any proceeds received as a result would be taxable.
Tip: The IRS also says in Pub. 535 that you can’t deduct premiums paid on a sickness or disability policy that pays lost income in case of sickness.