How to find cheap general liability insurance rates
How can I get cheap general liability insurance coverage?
If your small business is sued for slip-and-fall injuries, customer property damage, or advertising injuries like copyright infringement, the financial consequences can be catastrophic.
Commercial general liability insurance (CGL) covers many of these common business risks, helping to pay for legal fees, medical expenses, and other financial losses.
There are many ways to find cheap (but quality) coverage, keep costs down, and make sure you have the right policies in place for all your business needs.
Table of contents
- Shop around and compare general liability insurance quotes
- Bundle your general liability coverage with other policies
- How much does a general liability policy cost?
- Personalize your general liability policy
- How to save money on general liability insurance
- States with the most affordable general liability insurance rates
- Industries with the lowest general liability insurance rates
- What doesn't general liability insurance cover?
- Get free quotes and buy online with TechInsurance
Shop around and compare general liability insurance quotes
Getting quotes from multiple insurance companies is one of the savviest ways to secure affordable coverage. With TechInsurance, you can get cheap general liability insurance quotes online in minutes.
By submitting just one easy application, you can get general liability quotes from providers like The Hartford, Chubb, and Liberty Mutual. Plus, our licensed insurance agents are here to answer questions and help you choose the right coverage.
Typically, you can get a certificate of insurance (COI) for proof of coverage the same day you apply for quotes.
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Bundle your general liability coverage with other policies
Most insurers offer discounts when you purchase more than one policy, making policy bundles a great way to save money on your insurance.
For example, a business owner's policy (BOP) bundles general liability with commercial property insurance, offering a more streamlined form of coverage that's typically cheaper than buying the policies separately.
Electricians, IT staffing agencies, restaurants, and other businesses that have physical locations, own expensive equipment, or visit clients regularly purchase this policy to cover:
- Injuries to customers, vendors, and other third parties
- Damage to property owned by your business or a third party
- Product liability for items manufactured, distributed, or sold by your business
- Defamation, such as libel or slander
Depending on your profession and business risks, you might be able to bundle other policies with your general liability coverage, like professional liability insurance.
How much does a general liability policy cost?
The average cost of general liability insurance for TechInsurance customers is $45 per month.
General liability insurance premiums are calculated based on several factors, including:
- Location
- Business operations
- Number of employees
- Claims history
- Policy limits and deductible
- Your industry
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Personalize your general liability policy
Select the right coverage limits and deductible for your needs
The policy limits and deductible you choose will directly affect your premium, so it’s important to find the right balance.
Policy limits
CGL policies have two limits:
- Per-occurrence limit is the maximum amount your insurer will pay on a single claim.
- Aggregate limit is the maximum your insurer will pay during a policy period.
Higher coverage limits mean more coverage—and higher premiums. Policyholders can save money by:
- Selecting lower limits: Less coverage brings lower premiums, but you'll want to check your client contracts for coverage requirements before going this route.
- Buying umbrella insurance: If you carry multiple liability policies, commercial umbrella insurance is an affordable way to extend coverage across all of them.
Deductible
Opting for a higher deductible is one of the easiest ways to lower your premium—but you have to be able to pay the full amount before coverage kicks in. Choose a deductible you can comfortably cover out of pocket, so you’re never left without coverage.
Review policy exclusions and additional coverage options
To make sure you're not overpaying or under-covered, you need to understand the details of your liability policy. For example, a handyman may not realize their general liability policy excludes damage for faulty workmanship, leaving them exposed to costly insurance claims.
A quick review can help you:
- Remove coverage redundancies or coverage you don't need
- Identify exclusions and vulnerabilities
- Fill coverage gaps and supplement coverage with endorsements or other insurance products
When it's time to renew your coverage, your insurer may conduct an audit to make sure your coverage accurately matches your risks. Doing your own review beforehand can help ensure that it does.
How can I save money on general liability insurance?
Reduce workplace accidents
If your business is open to customers, visitors, and other members of the public, you're at risk for third-party injury claims. You can mitigate this risk by:
- Creating a safe environment: Provide signage and barricades for potential workplace hazards, such as wet floors, icy sidewalks, and uneven surfaces.
- Reducing hazards: Use floor mats, install handrails, and have adequate lighting in all areas and the parking lot.
- Implementing cleanup and repair policies: Remove clutter, efficiently clean up spills, and promptly fix unsafe issues such as broken steps.
It's important to protect yourself and your employees. Be sure to document ongoing repairs and train your employees on protocols for properly reporting and eliminating hazards.
Conduct product testing and provide clear instructions
If your business makes, ships, or sells goods, you could be held liable for a defective product causing harm to a customer or their property. To reduce the risk of an expensive product liability lawsuit, make sure to:
- Conduct rigorous safety testing
- Provide clear usage instructions
- Add prominent warning labels
- Maintain consistent quality control
Establish guidelines for advertising and social media
Anything you publish on social media, your company website, or in advertisements is vulnerable to accusations of libel, slander, copyright infringement, and other advertising injuries.
Lower your risk for a costly claim by creating guidelines for your team, such as:
- Getting written consent before posting customer photos on your social pages
- Validating customer reviews or testimonials before posting
- Assigning a team member to review all ads before they launch
- Outlining what employees are allowed to post on the company’s behalf
Set clear protocols for handling third-party property
If your business handles other people’s property, you could face expensive third-party claims and hefty legal defense costs. You can lower the chances of a liability claim with simple protocols, such as:
- Clear handling procedures: Define employee protocol for interacting with customer property, like banning food or drinks near devices at a computer repair shop.
- Regular employee training: Make sure that staff understand and align with company standards.
- Documented processes: Keep clear records of your safety efforts and document all established protocols and offered training.
Depending on your industry, you might need to get additional coverage for property in your care. For example, a flooring installation company that moves a client’s furniture during a job may need to add a care, custody, and control (CCC) endorsement to their CGL policy to protect against any damage done to the homeowner’s items.
States with the most affordable general liability insurance rates
Premiums vary by state, so depending on where you run your business, you might see lower costs than others. Here are some of the states where general liability and business owner’s policy rates are lower than average:
State | General liability insurance cost | Business owner’s policy cost |
|---|---|---|
$42 per month | $79 per month | |
$40 per month | $78 per month | |
$42 per month | $71 per month | |
$44 per month | $78 per month | |
$41 per month | $59 per month | |
$42 per month | $69 per month | |
$42 per month | $71 per month | |
$42 per month | $74 per month | |
$42 per month | $79 per month | |
$42 per month | $70 per month |
Industries with the lowest general liability insurance rates
Your business industry can also impact how much you pay for general liability insurance. Businesses with a greater risk for third-party bodily injuries or property damage, like construction and landscaping companies, typically pay a higher premium than web designers, real estate agents, and other professional service providers.
Here’s a look at CGL costs across different industries.
Top professions that would benefit from general liability insurance
Don't see your profession? Don't worry. We insure most businesses.
What doesn't general liability insurance cover?
Employee injuries
Workers’ compensation insurance covers medical payments and disability benefits if an employee suffers a work-related injury or illness. It’s required by most states for businesses with at least one employee.
Company car accidents
Commercial auto insurance covers costs if your business vehicle is involved in an accident. Most states require this coverage for vehicles owned by a business. For leased, rented, and personal vehicles used for work, you should consider hired and non-owned auto insurance (HNOA).
Stolen or lost tools and equipment
Tools and equipment insurance, also called inland marine insurance, helps pay for the repair or replacement of tools and equipment if they’re lost, stolen, or damaged while in transit or at a jobsite.
Mistakes and oversights
Errors and omissions insurance (E&O), also called professional liability insurance, can cover lawsuits over professional mistakes, such as an independent contractor missing a project deadline or a web developer making coding errors.
Data breaches
Cyber liability insurance helps your business recover from data breaches and cyberattacks. For example, if credit card data is stolen from a clothing store, cyber insurance would cover the cost of notifying clients or supplying them with fraud monitoring services.
Workers' compensation insurance
Commercial auto insurance
Contractor's tools and equipment insurance
Errors and omissions insurance
Cyber liability insurance
Get free general liability quotes and buy online with TechInsurance
TechInsurance helps small business owners get affordable general liability insurance with immediate coverage. Submit an application to get free online quotes and choose the right type of business insurance.
If you have questions, our licensed insurance agents are here to help. Once you select your policy, you can usually get your certificate of insurance (COI) and begin coverage the same day.
