General Liability Insurance Cost
Frequently Asked Questions
How much does general liability insurance cost?
General liability insurance costs $400-$1,500/year for most small businesses, or about $30-$125/month. Costs depend on industry risk level, annual revenue, number of employees, and coverage limits. Low-risk businesses (consulting) pay $400-$600/yr, while higher-risk businesses (construction) pay $1,000-$2,500/yr.
What does general liability insurance cover?
GL insurance covers: third-party bodily injury (customer slips in your store), third-party property damage (you damage a client's property), personal and advertising injury (slander, copyright infringement), medical payments (immediate medical costs for injured third parties), and legal defense costs. It does NOT cover employee injuries (that is workers' comp) or professional errors (that is E&O insurance).
Do I need general liability insurance?
Yes, if your business interacts with clients, customers, or the public in any way. Many commercial leases, contracts, and clients require proof of GL insurance. Even home-based businesses face liability risks. GL insurance is the foundation of business insurance protection.
What is the difference between general liability and professional liability?
General liability covers physical injuries and property damage caused by your business operations. Professional liability (E&O) covers financial losses caused by your professional advice, services, or errors. A contractor needs GL (physical work risks). A consultant needs E&O (advice risks). Many businesses need both.
How much GL coverage do I need?
Most small businesses should carry at least $1 million per occurrence and $2 million aggregate. Larger businesses or those in high-risk industries may need $5 million or more. Many contracts and commercial leases specify minimum GL coverage requirements.