Expense Category
Human Resources

What expense category is insurance?

There is no definitive answer to this question, as the correct expense category for insurance will vary depending on the business and the type of insurance being purchased.

Types of Insurance

There are many different types of insurance, each of which could fall into a different expense category. Some of the most common types of insurance are:

  • Property insurance
  • Liability insurance
  • Business interruption insurance
  • Product liability insurance
  • Professional indemnity insurance
  • Directors' and officers' liability insurance
  • Employment practices liability insurance
  • Cyber insurance
  • Marine insurance
  • Aviation insurance
  • Political risk insurance
  • Trade credit insurance
  • Surety bonds

Factors to Consider

There are a number of factors that should be considered when deciding which expense category is appropriate for insurance. These include:

  • The type of insurance being purchased
  • The purpose of the insurance (e.g. to protect against property damage, liability, etc.)
  • The coverage provided by the policy
  • The term of the policy
  • The premium cost
  • Any deductibles or exclusions that apply

In general, there is no clear answer for what expense category to choose, as it will vary depending on the business and the type of insurance being purchased. Businesses should consider all of the factors listed above when deciding which expense category is most appropriate for their needs.

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.
“Accurate classification of expenses is vital for businesses as it forms the backbone of financial reporting, tax compliance, and strategic decision-making. It enables businesses to track and analyze their spending patterns, identify cost-saving opportunities, and assess the profitability of various operations or projects. Having a single source to turn to for accounting classification suggestions, such as the Ramp Expense Classifier tool, is immensely helpful as it provides consistency, reduces ambiguity, and streamlines the expense classification process.”
Audrey Carroll
Senior Manager, Accounting, Ramp
Ramp logo and SandBoxx logo
Sandboxx Logo

“As we scale we need tools that are built to scale with us - we need to see expenses real time, we need to see duplicate spend. These types of insights are important to the health of our business.”

Steve Padis
SVP Finance & Strategy, Barry's

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

Experience the
Ramp advantage

Ramp is focused on maximizing your business' most precious resources: every minute and dollar.
1,900+ reviews