The answer is yes, no and maybe. Yes, it can be tax deductible if the business owner purchases a Business Overhead Expense policy or BOE. This policy is specifically designed to pay bills and payroll not the owner direct. For this reason a BOE policy is tax deductible.
On a straight disability income policy yes you can set it up with the help of your accountant to have the business pay the premiums. In most cases you don’t really want to do it that way. If you pay premiums with post tax dollars then benefits are tax free. If you pay premiums through the business then your benefits would be taxed as income. Think of it as do you want to pay taxes on the seeds or the harvest? The premiums are much smaller in comparison to the benefits received there for a lot less tax will be paid.