General Liability Insurance
Answer a few questions. Compare personalized quotes. Get covered today.
What kind of work do you do?
Woman reviewing paperwork
Logos of Insureon's Partners
We partner with trusted A-rated insurance companies

How much does general liability insurance cost?

The cost of general liability insurance varies based on your business operations and policy limits, among other factors. Small businesses pay about $40 per month for this policy.

What is the average cost of commercial general liability insurance?

Regardless of policy limits, the median cost of general liability insurance is $42 per month (about $500 annually) for Insureon customers. The median cost offers a more accurate estimate of what your business is likely to pay than the average business insurance cost because it excludes outlier high and low premiums.

Most small business owners (48%) pay between $300 and $600 annually for their policies, and 17% pay less than $300. These figures were derived from an analysis of thousands of insurance policies purchased by Insureon small business customers.

How much do small businesses pay for general liability insurance with Insureon?

How does your industry impact the cost of commercial general liability insurance?

Our analysis of general liability insurance costs reveals that for small businesses, your industry has the biggest impact on your policy costs. Generally, insurance companies charge high-risk industries 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 from a home office. The graph below illustrates how the type of business affects what you'll pay for a general liability policy.

Median general liability insurance premium for Insureon customers by industry

Construction, cleaning, and landscaping businesses have the highest general liability costs because they often do work that involves other people'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 do limits affect general liability 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 liability insurance. If you want a policy with higher coverage limits, expect to pay more than you would for basic coverage.

General liability insurance coverage with $1 million / $2 million limits is the most popular option for small businesses. This includes:

  • $1 million per-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.

The majority of Insureon customers (92%) choose a policy with $1 million / $2 million limits. Five percent of our customers choose a policy with $2 million / $4 million limits, the next most popular choice.

The right amount of coverage depends on your business needs. You want coverage that'll cover a potential lawsuit, without buying more than you need. Chat with a licensed insurance agent if you're unsure which limits are right for your business.

General liability coverage provides affordable, necessary protection for your small business

A general liability insurance policy is a must-have to protect against the potentially devastating costs of a lawsuit over a bodily injury or property damage. At any business, a visitor could trip and suffer an injury. If the visitor sues, legal costs can escalate to the point where they could sink your business.

Even if no one outside your company visits your office, someone could still hold your business liable for damages. For example, businesses that run advertising campaigns or post on social media could face a lawsuit if they post content that doesn't belong to them, or make a false claim about a competitor.

When someone sues your business – even if it's a frivolous lawsuit – you'll have to pay legal defense costs, such as the cost of hiring an attorney. If you lose the suit, you could end up paying a fortune in a court-ordered judgment or a settlement.

Commercial general liability insurance covers all of these costs, which could save your business from bankruptcy. Because the premium is based upon your level of risk, small businesses and contractors usually pay only a small monthly premium for this coverage.

Tips for saving money on general liability insurance

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 general liability insurance and commercial 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 the full premium. Businesses can usually save money this way because many insurers offer discounts for annual premiums.

Proactively manage your risks. If your small business has a clean claims history, you can expect 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

Learn more about business insurance costs

Compare general liability insurance quotes
Fill out our online application and get expert advice to find the right policy.
What kind of work do you do?