Possibly.
You have taxable income if the insurance payment is more than your adjusted cost basis in the destroyed property. Your cost basis is the price you paid minus any depreciation or expense deductions you have taken.
For example, if you have inventory or supplies that you already claimed a tax deduction for in a past year, or that you intend to claim a deduction for this year, and it is destroyed and reimbursed by insurance, the reimbursement is taxable. For assets, you have to determine the current adjusted cost basis based on depreciation.
https://www.wnj.com/Publications/How-to-Minimize-Taxable-Income-from-Casualty-
https://www.irs.gov/forms-pubs/about-publication-584b
