How Much Does General Liability Insurance Cost For My Business?


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How much does general liability insurance cost?

The average cost of general liability insurance is $40 per month [1], or $480/year.

What is general liability insurance? Learn more about general liability insurance and what it covers.

Cost Factors For General Liability Insurance

The cost of general liability insurance depends on many factors, here are the main ones:

  • Exposure - How risky is your business? A factory or manufacturer will have much higher risk than
  • Location - Where are you located? Highly populous areas will generally pay more.
  • Number of employees - More employees generally means higher costs.

Examples of Costs (by business type)

How much you'll pay depends on many factors. Here's a breakdown of 3 business types what costs they might expect for general liability:

Affordable Example Typical High-End
Occupation Sole Proprieter Landscaping Business General Contractor
State San Fransisco, CA Dallas, TX New York City, New York
Annual Payroll $100,000 $200,000 $300,000
Per occurrence limit $500,000 $1,000,000 $2,000,000
Aggregate limit $2,000,000 $2,000,000 $5,000,000
Deductible $0 $0 $0
Monthly cost $30/month $50/month $90/month
Annual Cost $360 $600 $1,080

Best Options For General Liability Insurance

A list of the most reputable companies to buy general liability insurance:

Provider Same Day Coverage? Apply Online? Notes
The Hartford Yes Yes
Liberty Mutual Best for budget-conscious businesses
Thimble Yes Yes Best for flexible coverage
Hiscox Yes Best for small businesses
CNA Best for more than one policy
AIG Best for product liability
Suracy Best for Workers’ comp

How to lower your general liability insurance costs

  1. Raise your deductible: Higher deductible means higher premiums.
  2. Cut unnecessary coverage: Oftentimes, providers will add coverage you don't need.
  3. Look for package deals: Consolidate your insurance policies
  4. Shop around: Get bids from new providers. It can't hurt to look.
  5. Reduce your risk: The higher risk, the more your insurance company is going to charge you for coverage.
  6. Ask about discounts: It never hurts to ask.
  7. Pay in advance: Many insurance providers will offer discounts to those who pay in advance.

References

Contributors

Contributors to this article:

  • Pat Walls, Founder @ Starter Story