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How Much Does General Liability Insurance Cost?
Not sure how much you should expect to pay for general liability insurance for your small business? The cost of general liability insurance varies, but on average, our customers paid about $810 annually, or $68 a month.** Keep in mind that every business is different and faces their own unique risks.
What Is General Liability Insurance Cost per Month?
Insurance companies look at several factors when determining your general liability cost. Things like the amount of risk your business faces and your claims history can influence your cost. Typically, small businesses that face more risk pay more for insurance. So, a construction company may pay more than an accounting firm.
What Is General Liability Insurance?
General liability insurance (GLI), also called commercial general liability insurance, is an essential part of your business’ protection plan. It helps protect you from claims that can come up during normal business operations, such as bodily injury or property damage claims.
Factors That Influence How Much General Liability Business Insurance Costs
Insurance companies use several factors when determining your liability insurance cost. This can include:
Risk Exposure
If your business is in an industry with high levels of risk, it can increase your general liability insurance cost.
Business Location
Running your company in a more populated area or in an area that experiences more natural disasters can increase the risk of claims, which may impact your cost.
Years in Business
Newer small businesses don’t have as much experience, which can cause an increase in insurance rates.
Type of Business
Certain industries face higher amounts of risk than others, which can increase cost for general liability insurance.
Coverage Limits
The policy limit amount and deductible you choose can affect your insurance cost. Typically, your policy will cost more if you need a higher coverage limit.
Claims History
A business with a clean claims history demonstrates safety and experience. This can help lower your small business insurance cost.
The best way to find out how much your business’ general liability insurance cost will be is to get a quote. You can also look at our general liability insurance reviews to see what real customers say about us.
| Industry | Average Annual Premium for General Liability Insurance** |
|---|---|
| Business Consulting | $780 |
| Accountants | $675 |
| Engineering | $595 |
| Retail Stores | $696 |
| Restaurants | $2,408 |
| Manufacturers | $651 |
| Photographers | $437 |
General Liability Insurance Costs FAQs
How Much Is General Liability Per Year?
General liability insurance costs vary, so businesses pay different costs per year for coverage. Typically, businesses pay a few hundred to a couple thousand dollars a year. The average cost is $810 annually.** The best way to find out how much general liability insurance will cost your business is to get a quote.
How Much Is a $1 Million General Liability Insurance Policy?
On average, a $1 million liability insurance policy costs $69 a month, or $824 a year, for our small business owners.** Keep in mind that every business is different, so the $1 million liability insurance cost will vary. What your business pays for a policy with $1 million or $2 million general aggregate limits can be different compared to other companies.
What Doesn’t Liability Insurance Cover?
General liability insurance covers most liability claims, but not every type. You’ll need to get other types of business insurance to give your company extensive coverage. A general liability policy won’t help your business if:
- An employee gets hurt on the job or sick from their work. You’ll need workers’ compensation insurance to help cover this kind of claim. It can also help financially protect you if an employee sues your business because of a work-related injury or illness.
- A customer sues your business for making a mistake in your professional services. You’ll need to get professional liability insurance, which can help pay your legal defense costs.
- You get into a car accident while making a delivery to a customer with a company-owned car. A commercial auto insurance policy can help cover the third-party property damage from the accident.
- A fire damages the building your business owns. Commercial property insurance can help cover your repair costs.
How Is a General Liability Insurance Premium Calculated?
Several factors contribute to your business’ insurance cost. From the number of employees you have and your claims history to the type of business you operate, different factors can affect your general liability insurance premium. Insurers look at these factors and then use their own formulas when determining costs.
What Factors Influence the Cost of General Business Liability Insurance?
General liability insurance costs are different for everyone because every business has unique needs. Some factors that can determine insurance costs include:
- Type of business
- Revenue
- Number of employees
- Location
- Policy details, like coverage limits and deductibles
Start Protecting Your Business and Get a General Liability Insurance Quote
We’re an insurance company with over 200 years of experience. We’ve helped over 1.5 million small business owners get the insurance coverage they need to help protect their unique companies.
“How much does general liability insurance cost?” We hear this question all the time, but the total varies depending on several factors. We’ll help get you a price tailored to your needs. Get a general liability insurance quote today that will help protect your business.
Learn More About General Liability Insurance
Watch this video for more information about your coverage options.
Find Out More About General Liability Insurance
Last Updated: April 11, 2025
** Costs, premiums, and coverages mentioned are estimates and are not guaranteed. Actual cost, premium, and coverage are determined at the time of quote or issue and are specific to an individual risk. Premiums are based on information provided to The Hartford, including, but not limited to, underwriting and rating criteria. All examples included on this website or in an advertisement are intended for informational purposes only and are not an offer or a guarantee of premium or coverage. Coverage and products described are subject to the terms and conditions found in the policy contract. Any educational information provided about available coverages does not modify the policy language or imply that any claim is covered. Products are not available in all states or for all businesses.