How much does General Liability insurance cost?

General liability insurance cost at ERGO NEXT starts at just $19 per month for some businesses,† and nearly half (45%) of our customers pay $45 or less per month for low cost general liability insurance.¹ The average cost for general liability insurance coverage for some professions starts at just $20 per month. The exact general liability cost for your business depends on a number of factors, such as your business location, size, operations, your business risk and the type of coverage you choose. To see the exact cost of general liability insurance for your business, it takes just 10 minutes to get a free, no-obligation quote 100% online.

Jump ahead to learn:

• What does General Liability cost for a business?
• What’s the lowest cost of General Liability insurance?
• What’s the average cost of General Liability insurance for small business owners by profession?
• What factors influence General Liability business insurance cost?
• Tips that could help you save on the cost of General Liability insurance
• Get a quote to see the cost of General Liability insurance for your small business

What does General Liability cost for a business?

General liability insurance could help protect your business from the costs of injuries to non-employees, property damage to other people’s property and some legal claims.

The cost of general liability insurance for many small businesses is between $19 and $45 per month, depending on their risk profile. About 45% of ERGO NEXT policyholders pay $45 or less per month for their general liability insurance costs. The cost of commercial general liability insurance depends on the type of policy your business needs and your business’ level of risk.

What’s the lowest cost of General Liability insurance?

At ERGO NEXT, the lowest commercial general liability insurance cost can start as low as $19 per month. Based on our most recent customer data:

• 12% of our customers pay under $25 per month
• 33% pay $25-$45 per month
• 19% pay $45-$75 per month
• 10% pay $75-$100 per month
• 28% pay $100 or more per month

This low cost liability coverage is most common in low-risk industries. For example, consultants, freelancers or other professionals who work solo and primarily on a computer often have fewer chances of causing bodily injury or property damage. With less day-to-day risk, they may qualify for lower-cost coverage.

Businesses with more hands-on work or customer interaction tend to pay more. For example, construction, cleaning and auto services face higher risk due to job sites, tools, equipment and frequent contact with client property. This can increase the likelihood of claims, which can lead to higher premiums.

What’s the average cost of General Liability insurance for small business owners by profession?

The average cost for general liability insurance by industry varies because different business types carry different levels of risk. The cost of commercial general liability insurance depends on the type of work your business does and the risks you face. Here are a few examples of average costs:

What factors influence General Liability business insurance cost?

What your business will spend on the cost of general liability insurance depends on several factors that get calculated together, including:

1. Your type of business or industry

Higher-risk businesses could be more likely to have a claim involving injury and property damage. Jobs on other people’s property often have higher insurance premiums due to their higher risk.

2. Your number of employees

If you employ several people your liability insurance could cost more than if you work alone.

3. Your business location

Different states have different regulations and costs. And insurance rates are sometimes higher in densely populated areas that see more claims.

4. Your work experience

If you have 25 years of experience in your profession you may expect to pay less than someone new to their field.

5. Your claims history

Your safety record of losses and claims with previous insurance policies could impact your small business insurance rates. 

6. How you set your coverage limits

Higher coverage limits offer more financial protection — but they almost always increase your monthly insurance premium. It’s important to set your coverage limits to give your adequate liability protection at a rate that’s within your budget.

7. How long you’ve been in business

If you’re just launching your new small business, your general liability cost may be higher at first since insurers don’t yet have much claims history or operating history to review.

8. Your business revenue or payroll

Businesses with higher revenue or payroll may pay more because they often have more customers, more work or greater overall exposure to risk.

Note: It’s important to provide the most accurate information about your business when you get a general liability insurance quote. This can help to ensure you get the right coverage and avoid delays if you need to process a claim.

Tips that could help you save on the cost of General Liability insurance

You can take steps to help reduce the cost of general liability insurance, including:

1. Bundle more than one policy 

Many businesses could benefit from more than one type of business insurance coverage to help cover more risk. And bundling policies together can often reduce your overall business insurance cost.

Business owners who buy general liability often include:

• Workers’ compensation insurance. Required in most states if you have employees, this policy can help cover medical expenses for workers who suffer a work-related illness or injury.
• Commercial property insurance. This coverage could help protect your business inventory, equipment and the physical structure of the business building you own or rent, including a storefront, office, warehouse or storage facility. Property coverage could also help replace your business income if you have to close temporarily for repairs after a covered event such as fire, theft or a storm damage.
• Professional liability insurance. Also called errors and omissions insurance (E&O insurance), this policy is often required for licenses for knowledge workers who provide professional services, such as real estate, financial advisors and consultants. But even if it’s not mandatory for your business, this type of coverage can help protect you after an accusation of a professional mistake that costs a client money.
• Cyber liability insurance. This coverage could help cover financial losses if sensitive customer data or financial information is compromised after cybercrimes like phishing schemes, data breaches or ransomware attacks.
• Commercial auto insurance. Insurance for commercial vehicles is required in almost every state if you have cars, trucks, vans, trailers or other vehicles you drive for business.

Many small business owners opt for BOP insurance (Business Owner’s Policy), which combines general liability and commercial property coverage — often with additional savings.

2. Reduce your risk

A safe workplace and job site can help lower the chance of a liability claim and may help keep the cost of commercial general liability insurance down. For example:

• Don’t do work you’re not trained to do and that’s not covered by your insurance.
• Secure your business and your job site from thieves and vandals.
• Keep your work area clean and safe so that no one trips on cords, furniture, equipment or tools.
• Protect your business property to help mitigate damage from rain, wind, snow and inclement weather.

3. Choose the right policy limits and deductibles

General liability policies have per-claim limits and aggregate limits. Once the limit of your liability policy is reached, your business is responsible for paying the remainder.

If you want more protection from damages and incidents you’ll need higher coverage limits, which may increase your premium.

Although lower limits can help save you money on your insurance, if you don’t have enough coverage, you may have to pay more out of pocket after a claim.

4. Learn from previous claims

Review your past claims to learn how accidents and mishaps could have been prevented and how you can reduce future risk.

Get a quote to see the cost of General Liability insurance for your small business

ERGO NEXT makes it fast, easy and affordable to protect your small business — and you can do it all online.

We’ll ask a few questions about your business and give you a quote. You can select your coverage options and buy your policy in about 10 minutes. Share your certificate of insurance at no extra cost, and you can access your policy 24/7 via web or mobile app.

If you have questions, our licensed, U.S.-based insurance professionals are available to help.

Start a free quote with ERGO NEXT.