General liability insurance can cost as little as $50 per month for low-risk businesses, like consultants. But you'll pay far more in the construction industry or if you have lots of customer foot traffic.
Businesses typically need general liability insurance regardless of what they do. You can buy this coverage on its own or as part of a business owner's policy. Shop around to find the best rates and fit for your business.
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NerdWallet Small Business helps you get real-time quotes from 30+ insurers, and instant access to your Certificate of Insurance (COI) through our partner, Coverdash.
How much does general liability insurance cost?
Coverdash, an online insurance brokerage, shared these data with NerdWallet about general liability insurance costs.
| Industry | Median general liability insurance premium |
|---|---|
| $450 per year. | |
| Business and management consulting | $550 per year. |
| Pet supply stores | $600 per year. |
| Personal fitness training | $600 per year. |
| $650 per year. | |
| Small software developers | $700 per year. |
| Janitorial services | $750 per year. |
| E-commerce merchants | $850 per year. |
| Convenience stores | $1,200 per year. |
| Remodeling and home renovation | $1,400 per year. |
| Landscaping services | $1,400 per year. |
| Fast food and carry-out restaurants | $1,500 per year. |
| $1,800 per year. | |
| Day spas | $1,800 per year. |
| Residential plumbing | $2,200 per year. |
| Consumer electronics stores | $2,500 per year. |
| Auto engine repair | $2,200 per year. |
| Drywall contractors | $7,500 per year. |
| Driveway paving and sealing | $8,000 per year. |
| Terrazzo and tile refinishing | $8,000 per year. |
| Access flooring installation | $11,000 per year. |
| Glass and glazing (curtain wall installation) | $11,000 per year. |
| Pipe, duct and boiler installation | $12,500 per year. |
What affects the cost of general liability insurance?
How much you’ll pay for this business insurance policy will likely depend on the following:
Your industry
The riskier the industry your business operates in, the higher your general liability insurance costs are likely to be.
For instance, a retail store with multiple storefronts is more likely to incur slip-and-fall claims than a web designer working out of her home. A plumber is more likely to incur property damage claims than a pet supply store because the plumber operates in a customer's home.
Your claims history
If your business has been sued several times in recent years for damaging customers’ property — and if you’ve filed claims to help cover those losses — insurers may see you as a greater risk and charge you higher premiums to offset those potential future costs.
Your location
Some states have court systems that are friendlier to businesses. Others favor customers, which generally means businesses have to pay larger settlements. This can affect your premiums.
According to Coverdash, general liability insurance is most expensive in:
- New Hampshire costs are 400% above the national median.
- Connecticut costs are 210% above the national median.
- Kentucky costs are 140% above the national median.
Other states are far cheaper, per Coverdash:
- Utah costs are 60% below the national median.
- New Mexico costs are 50% below the national median.
- Ohio and Nevada costs are 45% below the national median.
Your policy size
Many general liability insurance policies have a per-occurrence limit of $1 million and an aggregate limit of $2 million. That means the insurer will pay out up to $1 million for each individual claim filed, but will not pay out more than $2 million in a year.
Policies with higher limits will charge higher premiums, and smaller policies typically come with smaller premiums. A larger deductible typically translates to lower premiums, too.
Your business size
From an insurance perspective, every employee who works for your business presents a risk. The more drivers a delivery service has, for instance, the more opportunities those drivers have to crash. So as your business grows, your general liability policy may need to grow too and may become more expensive as a result.
Save up to 30% on business insurance
NerdWallet Small Business helps you get real-time quotes from 30+ insurers, and instant access to your Certificate of Insurance (COI) through our partner, Coverdash.
How to purchase general liability insurance
Most business insurers sell general liability insurance in two ways: on its own and as part of a package with other kinds of coverage.
Consider these providers as you start your search:
| Insurance company | When it's a good fit |
|---|---|
| Next Insurance | If you want to buy general liability insurance online in minutes. Read review. |
| Thimble | If you want to buy a temporary general liability insurance policy online. Read review. |
| Chubb | If you want to shop online for general liability insurance or a BOP. Read review. |
| State Farm | If you want personalized support from a local agent. Read review. |
| Progressive or Geico | Progressive and Geico don’t underwrite general liability insurance themselves. But if you’re purchasing commercial auto insurance through either provider, they can connect you to a third party for general liability insurance. Read our reviews of Progressive and Geico. |
For many business owners, buying a business owner's policy, or BOP, may make more sense than buying general liability coverage by itself.
In general, BOPs include general liability insurance, commercial property insurance and, most of the time, business interruption insurance. They’re typically available to companies with 100 or fewer employees and annual revenue of $5 million or less, though availability varies by industry — restaurants and construction businesses may not be able to get BOPs due to certain risks, for instance.
If you can’t buy a BOP or don’t need all the types of coverage included in one, you can buy a general liability policy on its own. Get quotes from several business insurance companies to find the best policy for you.
Once you're insured, make sure you know how to generate your certificate of liability insurance in case a client or landlord requests a copy of it.
