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What Is the Cost of General Liability Insurance for a Small Business?

The average cost of General Liability Insurance (aka Commercial General Liability or CGL) depends on a number of factors, including business size and type. The following are sample CGL quotes (i.e., policy cost estimates) and deductibles (i.e., estimates of the amount you'd have to pay out of pocket before receiving benefits), and do not constitute recommendations.

What Does Commercial General Liability Insurance Cover?


CGL Insurance protection typically covers:

  • Personal Injury to third parties (anyone other than you and your employees)
  • Property Damage (such as fire damage, storm damage, and theft)
  • Medical Expenses (such as the cost of calling an ambulance for someone injured on your premises)
  • Completed Products (i.e., damage caused by your products after you finish creating them)
  • Contracts Liability (including any liability you assume by entering into leases or other contracts)
  • Personal and Advertising Injury (such as claims of slander or libel)
  • Liquor Liability (including liability from events for your employees at which you serve alcohol)

Sample Commercial General Liability Quote: Small Consulting Company

For the purposes of this sample quote, we consider a "small" consulting company one that has:

  • 0-2 staff employees
  • 0-5 programmers
  • $25,000-$1,000,000 in annual revenue

Given these specifications, the following are ballpark insurance policy limits and premium costs.

Typical annual premium: $500 – $900

Policy Breakdown: What It Covers

Total coverage limit (per occurrence) $1 million
Total coverage limit (annual aggregate) $2 million
Personal & Advertising coverage limit (per occurrence) $1 million
Completed Products coverage limit (annual aggregate) $2 million
Damage to Rented Premises coverage limit $300,000
Medical Expenses coverage limit $10,000

Sample Commercial General Liability Insurance Quote: Independent Contractor / Web Designer


For this sample quote, we assumed annual revenue of $0 – $150,000.

Typical annual premium: $425.00 – $900.00
Property Claim Deductable: $500

Policy Breakdown: What It Covers

Total coverage limit (per occurrence) $1 million
Total coverage limit (annual aggregate) $2 million
Personal & Advertising coverage limit (per occurrence) $1 million
Completed Products coverage limit (annual aggregate) $2 million
Damage to Rented Premises coverage limit $300,000
Medical Expenses coverage limit $10,000
Business Property coverage limit* $10,000
Business Computer & Media coverage limit* $50,000
Laptop Computer coverage limit (worldwide)* $5,000

Sample Commercial General Liability Insurance Quote: Large Consulting Firm

For the purposes of this sample quote, a "large" consulting firm is one that has:

  • 6-10 staff employees
  • 10-50 programmers
  • $3-$10 million in annual revenue

Typical Annual Premium: $3,646
Property Claim Deductible: $1,000

Total coverage limit (per occurrence) $1 million
Total coverage limit (annual aggregate) $2 million
Personal & Advertising coverage limit (per occurrence) $1 million
Completed Products coverage limit (annual aggregate) $2 million
Damage to Rented Premises coverage limit $300,000
Medical Expenses coverage limit $10,000
Business Property coverage limit* $100,000
Business Computer & Media coverage limit* $150,000
Laptop Computer coverage limit (worldwide)* $5,000

*Coverage for business property can be added to a General Liability Insurance policy by bundling it with a Property Insurance policy. This bundled package is called a Business Owner's Policy, and is available to certain businesses that have a low risk profile and meet certain other criteria.

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