The Cost of General Liability Insurance Cost
General Liability Insurance Cost Analysis
By analyzing data from policies we sold in 2014, we put together a snapshot of how much General Liability coverage costs for the typical small-business owner. The sample we analyzed included 15,000 businesses with 10 or fewer employees.
On average, the annual cost for small business General Liability Insurance, regardless of policy limits, was just $575.16 (less than $50 per month), with a median price of $425. Most small businesses owners (almost 60 percent) paid between $400 and $600. Another 22.1 percent paid less than $400.
Get an idea of the full breakdown from the chart below.
As you can see, about 90 percent of insureon customers pay less than $1,000 per year (that's less than $85 per month) for General Liability Insurance.
General Liability: Industry Drives Pricing
One of the factors that had the biggest impacts on the cost of General Liability Insurance was the industry of the business buying coverage. That makes sense: Brick-and-mortar retailers get a lot more foot traffic than home-based accountants and janitors have a greater chance of damaging client property than business consultants. Both injuries to third parties and damage of client property are covered by a GL policy.
Take a look at the graph below to see how the industry you work in affects what you'll pay for a GL policy with an aggregate limit of $2 million and a per-occurrence limit of $1 million (that's our most popular policy limit, as we'll explain below). (Hint: hover over bars to see exact values.)
Notice that janitors, construction businesses, and manufacturers have the highest costs of coverage. That's because businesses in these industries do work that involves other people's property and, as we mentioned above, GL can pay for third-party property damage.
General Liability: Coverage Limits Affect Cost
If you want car insurance that pays for a wide range of damage, you have to pay more for it. The same rule applies to business insurance: if you want a policy with higher coverage limits, expect to pay more than you would for bare-bones coverage.
What General Liability Limits Do Small Businesses Choose?
The most popular GL limits among insureon customers are…
- $1 million occurrence, meaning that while the policy is active, the insurer will pay up to $1 million to cover any single claim.
- $2 million aggregate, meaning that during the lifetime of a policy (usually one year), the insurer will pay up to $2 million to cover claims.
In the insurance world, this limit is represented as $1M / $2M. As you can see in the chart below, more than 85 percent of insureon customers chose a policy with $1M / $2M limits. To see other limits and how many businesses chose them, hover over the slices of the pie.
What Small Businesses Pay for $1M / $2M General Liability Insurance
So what does $2 million in aggregate coverage cost a small business? More than half of insureon customers (56.4 percent) pay between $400 and $600 per year. Another 23.5 percent pay between $200 and $400, meaning that 80 percent of our customers pay $600 or less per year for coverage.
The average cost of a $1M / $2M GL policy is just $576.08 per year, and the median is $425.
See the chart below for a full breakdown of the cost of $1M / $2M GL coverage. (Hint: hover over sections to see exact percentages and costs.)
Dig Deeper into Insurance Costs
Insurance costs vary greatly based on the type of insurance a business buys. Learn more about how much each of these insurance policies costs for small businesses.
2014 Business Insurance Cost Analysis Home
To see what GL and other insurance policies cost for businesses in your industry, check out our industry-specific cost analysis:
Don't see your industry? Visit again in a month or so - we're in the process of adding more.