What expense category does general liability insurance come under?

There is no definitive answer to this question, as the correct expense category for general liability insurance will depend on the specific business and its accounting practices. However, some possible expense categories for general liability insurance include:

Operating Expenses

One possibility is to classify general liability insurance as an operating expense. This is because the insurance is necessary for the business to continue operating, and the cost of the insurance is directly related to the business's operations. This expense category is typically used for ongoing and necessary expenses, such as rent, utilities, and payroll.

Insurance Expenses

Another possibility is to classify general liability insurance as an insurance expense. This is because the insurance is specifically for protecting the business from liability, and the cost of the insurance is directly related to the risk of liability. This expense category is typically used for all types of insurance, such as property insurance, health insurance, and liability insurance.

Protection Expenses

Another possibility is to classify general liability insurance as a protection expense. This is because the insurance protects the business from liability, and the cost of the insurance is directly related to the risk of liability. This expense category is typically used for all types of insurance, such as property insurance, health insurance, and liability insurance.

Risk Management Expenses

Another possibility is to classify general liability insurance as a risk management expense. This is because the insurance protects the business from liability, and the cost of the insurance is directly related to the risk of liability. This expense category is typically used for all types of insurance, such as property insurance, health insurance, and liability insurance.

The information provided in this article does not constitute legal or financial advice and is for general informational purposes only. Please check with an attorney or financial advisor to obtain advice with respect to the content of this article.

Let Ramp automate your expense categorizations

Error Message
No personal credit checks or founder guarantee
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Tired of manually categorizing expenses? See how Ramp can automate this for you in the demo below