Whether you purchase travel insurance for business or pleasure is another question. While travel medical insurance is a tax-deductible medical expense, the cost of trip cancellation and interruption insurance are not. However, the amount you can deduct depends on how much of your trip is business-related. For example, if you're visiting clients, attending a conference, or taking a training course, you can deduct the cost of the conference and the travel expenses related to that.
For most travelers, the cost of travel medical insurance is deductible. A self-employed individual may be eligible to claim a portion of the medical expenses associated with his or her trip. For those who are employed but are not self-employed, they can deduct part of their travel health insurance premiums, if the trip is for business purposes. To determine how much you can deduct, contact your travel insurer. For further information, read the IRS's website.
If you own a business, you can deduct a portion of the premiums paid for travel health insurance. However, you must make sure you are claiming the medical portion of the insurance. Also, you must meet the requirements of Sec 162(I)(1)(B). If you're self-employed, you may not be able to claim the entire premium. Those who own more than 2% of an S-Corporation can deduct up to 10% of the cost of their travel health insurance.