How Much Does General Liability Insurance Cost
We put together a snapshot of how much Commercial General Liability Insurance costs for the typical small-business owner by analyzing data from policies we sold in 2017. The sample we analyzed includes more than 18,000 businesses with 10 or fewer employees.
On average, the annual cost of General Liability Insurance, regardless of policy limits, was just $741 (less than $62 per month), with a median price of $428 (about $36 per month). Most small-businesses owners (54 percent) paid between $400 and $600 for their policies. Another 21 percent paid less than $400.
As you can see, 87 percent of Insureon customers pay less than $1,000 per year (that's less than $85 per month) for General Liability Insurance.
Commercial General Liability Insurance: Industry Drives Pricing
One factor that has the biggest impact on the cost of General Liability Insurance is the industry of the business buying coverage. That makes sense: brick-and-mortar retailers get a lot more foot traffic than home-based accountants, and janitors have a greater chance of damaging client property than business consultants. Customer injuries and client property damage are both covered by a General Liability policy.
Take a look at the graph below to see how the industry you work in affects what you'll pay for a General Liability policy with an aggregate limit of $2 million and a per-occurrence limit of $1 million (that's our most popular policy limit, as we'll explain below). (Hint: hover over bars to see exact values.)
How General Liability Coverage Limits Affect Cost
If you want car insurance that pays for a wide range of damage, you have to pay more for it. The same rule applies to business insurance: if you want a policy with higher coverage limits, expect to pay more than you would for bare-bones coverage.
The most popular General Liability policy among Insureon customers is the $1 million / $2 million policy. This includes…
$1 million occurrence limit, meaning that while the policy is active, the insurer will pay up to $1 million to cover any single claim.
$2 million aggregate limit, meaning that during the lifetime of a policy (usually one year), the insurer will pay up to $2 million to cover claims.
