It is April 29, 2026. The IRS has issued Revenue Ruling 2026-12, clarifying that premiums for “AI-Specific Liability” and “Ransomware Insurance” are 100% deductible as ordinary and necessary business expenses.
- The Context: As cyberattacks on LLCs reach record highs in 2026, insurance is no longer optional—it’s a core requirement for B2B contracts.
- The Deduction: You can also deduct the costs of the “Security Audit” required to obtain the insurance.
- The Shark Insight: “Insurance isn’t a cost; it’s a tax-deductible safety net. If you don’t have it, your LLC is one ‘Deepfake’ hack away from extinction. Buy the policy, take the deduction, and sleep better at night.”