How much does general liability insurance cost?

General liability insurance ranges from an average cost of $340 per year to more than $600. If your business is small and low-risk, you may be eligible for a business owner’s policy (BOP), which combines general liability insurance and commercial property insurance at a discount.

The cost you pay for general liability insurance depends on your coverage limits. Most small business owners opt for a general liability policy with a $1 million per-occurrence limit and a $2 million aggregate limit.

Companies with a storefront or frequent client interaction should consider higher policy limits as they’re more susceptible to bodily injury, property damage, and advertising injury lawsuits. Higher limits cost more, but they cover more expensive claims.

The more you work with the public the more you’ll pay for this policy. When determining your premium, your insurance company will look at:

Commercial insurance costs are higher for high-risk businesses – those with a large footprint or heavy foot traffic. In short, more people means more opportunities for people to get injured. And if your employees handle other people’s property, that increases your risk as well.

For example, a busy IT staffing agency with people constantly coming and going will pay more for this policy than a web designer’s office that only sees a few clients a month.

Businesses in industries with a reputation for filing more claims, such as computer repair or other work involving other people’s property, will also pay more for commercial insurance.

Policies with high deductibles cost less, but you’ll have to pay that amount before you can collect on a claim. Most TechInsurance customers choose a deductible of $500 for general liability insurance.

Insurance companies look at your claims history to determine how risky you are to insure. Companies that have made commercial general liability claims will pay more for insurance than those with a clean history.

Get the most out of your policy by considering the following:

Purchase a business owner’s policy (BOP). Small low-risk businesses may be eligible for a business owner’s policy. A BOP bundles a general liability insurance policy with commercial property insurance and costs less than purchasing the policies separately.

Pay the annual premium. When you buy a policy, you can choose to pay your premium monthly or annually. The annual amount costs less than paying by the month.

Manage your risks. Claims make your premium go up – so reduce your risks to avoid claims and keep your premium low.

To reduce the chance of making a claim on general liability coverage:

• Mop up spills promptly
• Tape down loose cables
• Create a protocol for social media posts
• Install security cameras to monitor accidents

You’ll also want to be careful about using images, music, and other intellectual property to avoid copyright infringement claims. Though you can’t eliminate every risk, these steps help avoid conflicts that lead to third-party lawsuits.

View our small business insurance cost overview or find out how much you can expect to pay for common types of business insurance.

• Errors and omissions insurance / professional liability insurance 
• Workers' compensation insurance
• Business owner's policy
• Cyber liability insurance
• Commercial umbrella insurance
• Commercial auto insurance
• Employment practices liability insurance
• Directors and officers insurance
• Fidelity bonds
• Commercial property insurance
• Business interruption insurance