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Yes, it is a deductible business expense.
I know the errors and omission premium payment can be deducted,....Howerver,....Can an errors and omission claim payment be deducted?
The laws regarding the deductibility of settlement payments are complex. Most were repealed with the Tax Cuts and Jobs Act of 2017. Here is a fairly recent article on the subject: Sorting the tax consequences of settlements and judgments.
Your best option is to seek the advice of a local tax or legal professional so you have adequate documentation to support your deduction should you choose to report it.
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