How Much Is General Liability Insurance?

We analyzed quotes from 10 major insurers and found that general liability insurance costs an average of $101 per month for small businesses. Premiums can range from $15 to $1,064 monthly, depending on your industry and business size.

Our base profile for our research was for policies with $1 million per occurrence with $2 million aggregate coverage limits for businesses with two employees (three, including the owner) earning around $300,000 a year.

Your actual general liability costs will likely differ from this average because multiple factors influence the price. In the sections below, we'll break down how rates vary by industry and location and explain what drives these cost differences.

Your industry is one of the primary factors affecting general liability insurance costs. Our study shows that drone businesses spend an average of $17 monthly, while pressure washing companies have premiums as high as $916.

Risk exposure spells the difference. Some small businesses are more likely to encounter accidents and claims than others.

Where you run your business also affects the cost of general liability insurance, though not as much as your industry. Our analysis reveals that small businesses in Maine pay around $88 monthly, while New York companies spend $118 per month. State regulations and how often lawsuits happen in your area drive these regional differences.

General liability insurance costs range from $15 to $1,064 monthly. Your industry and business size drive most of the difference, though claims history and coverage limits also play a part. Shopping multiple insurers, paying annually instead of monthly and bundling policies can result in more affordable general liability insurance premiums.

Small business owners frequently ask questions about general liability insurance pricing and coverage options, so we've provided the answers below:

We focused our research on cost, analyzing general liability insurance premiums for small businesses across different industries and states.

Every quote used identical parameters to ensure fair comparisons:

• Two employees (three people in total, including the owner)
• $150,000 annual payroll
• $300,000 annual revenue
• Already insured status
• $1 million/$2 million aggregate coverage

This profile represents small businesses that opted to purchase general liability insurance. We chose companies offering broad national coverage and online quote capabilities.