General Liability Insurance

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How much does general liability insurance cost?

A variety of factors are considered for general liability insurance quotes, including policy limits and business operations. Policies start as low as $21 a month for basic coverage.

Average costs for Insureon customers

The average annual cost of general liability insurance, regardless of policy limits, is $741 (less than $62 per month), with a median price of $428 (about $36 per month). Most small business owners (54 percent) paid between $400 and $600 for their policies, and 21 percent paid less than $400.

These figures were derived from an analysis of more than 18,000 small businesses with 10 or fewer employees that bought policies from Insureon in 2017.

What small businesses pay for general liability insurance

Industry risks impact commercial general liability insurance costs

Our analysis of general liability insurance costs reveals that industry has the biggest impact on policy costs. Generally, high-risk industries pay higher premiums, while low-risk industries enjoy lower rates.

For example, brick-and-mortar retailers open to the public are exposed to more risk than IT consultants working remotely from a home office. The graph below illustrates how the industry you work in affects what you'll pay for a general liability policy with an aggregate limit of $2 million and a per-occurrence limit of $1 million (our most popular policy limit; see below). Hover over the bars to view exact values.

Average cost of a $1M / $2M general liability policy by industry

Janitors, construction businesses, and manufacturers have the highest coverage costs because those industries often do work that involves someone else’s property. General liability policies can pay for damage you or your employees cause to someone’s property.

To see insurance costs for businesses in your industry, visit our industry-specific cost analyses:

How coverage limits affect insurance costs

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 basic coverage.

The most popular general liability policy among Insureon customers is the $1 million / $2 million policy. This includes:

  • $1 million occurrence limit. While the policy is active, the insurer will pay up to $1 million to cover any single claim.
  • $2 million aggregate limit. During the lifetime of a policy (usually one year), the insurer will pay up to $2 million to cover claims.

Which general liability limits do small businesses choose?

The majority of Insureon customers (85 percent) chose a policy with $1 million / $2 million limits. Twelve percent of our customers chose a policy with $2 million / $4 million limits, the next most popular choice.

What small businesses pay for $1M / $2M general liability insurance

The average cost of a $1 million / $2 million general liability policy is $1,283 per year, and the median is $584. For those limits, 53 percent of Insureon customers pay between $400 and $600 per year, and 22 percent pay between $200 and $400. In other words, 75 percent of our customers pay $600 or less per year for this coverage.

Tips for finding general liability cost savings

  • Bundle your insurance policies. With insurance, businesses can sometimes find discounts when they purchase multiple policies from the same provider. For example, if your business is considered low risk, you may qualify for a business owner’s policy. A BOP bundles commercial general liability and property insurance together at a reduced rate.
  • Pay your entire premium upfront. Your general liability policy premium can typically be paid in monthly or annual installments. It might be tempting to go with a smaller monthly payment, but consider paying your premium upfront. Businesses can usually find savings this way because many insurers offer discounts for premiums paid in full.
  • Proactively manage your risks. If your small business has a clean claims history, expect to pay lower insurance rates. An effective way to do this is to create a comprehensive risk management plan. For example, you might:
  • Develop a thorough training program for employees.
  • Invest in a security system.
  • Compile rules for posting to social media.
  • Create procedure checklists and reviews.
  • Minimize hazards on your premises.

Dig deeper into business insurance costs

Insurance costs vary based on the type of insurance a business buys. Learn more about how much these insurance policies cost for small businesses.

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