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General liability insurance

General Liability Insurance Costs

How much does General Liability insurance cost?

NEXT offers customized general liability insurance that’s tailored to your business. It can cost as little as $11 monthly for some businesses or $128 annually, but the exact price you’ll pay depends on your business location and operations.

What NEXT customers typically pay for General Liability insurance

44% of our customers pay $66 to $85 per month on general liability insurance. Here is the breakdown of what our customers pay for this type of coverage.

Monthly General Liability insurance costs 

  • Under $65: 8.3% of customers
  • $66 to $85: 44% of customers
  • $86 to $125: 22% of customers
  • Over $125: 25.7% of customers

What factors influence the cost of General Business Liability insurance?

Your specific commercial general liability insurance cost is determined by several factors, including:

The type of work you do

If you’re a yoga instructor, your insurance is probably going to be less than a roofing contractor because the nature of your work is inherently less risky.

The general liability insurance cost for contractors, who work with other people’s property, build structures and use expensive equipment, face more risks on a daily basis than many other professions.

In general, jobs that include working on other people’s property often have higher insurance costs.  

How many employees you have

If you own a hair salon and employ seven people, your insurance is going to cost more than if you’re a hairdresser who works alone.

If you have employees, many states require you to purchase workers’ compensation insurance to cover work-related injuries.

The state where you work

If you’re a small business owner in New York City you’re probably going to pay more for insurance than if you worked in a small town in Wyoming.

This is partly due to different states having different regulations and partly because, as a general rule, the more populous the area, the more expensive your insurance rates will be.

Your claims history

Your record of losses and claims has an impact on your insurance costs.

For example, if you run a lawn care business and have accidentally caused damage with rocks that get launched by your mower multiple times, you may see an increase in your premium at renewal time.

How high you set your limits

If you want to have more financial protection, you can select higher coverage limits on your insurance policy. Higher coverage limits will almost always increase the amount you pay for insurance.

Your work experience

The number of years you’ve operated a business in your industry impacts your insurance rates.

For example, if you’ve been an electrician for 25 years with no claims, you can expect to pay less than an electrician who’s been in business for two years because you have more skills and knowledge of your field. 

Note: It’s important to provide the most accurate information about your business when you get a quote for insurance to make sure you get the coverage that is right for you and any claims are processed without delays.

 

How is a General Liability insurance premium calculated?

An insurance premium is the amount you pay on a monthly or annual basis for your coverage.

An insurance company, calculates your premium (that is, your insurance costs) by taking into consideration all of the factors listed above, such as the likelihood that you’ll make a claim and how many employees you have.

NEXT customizes your coverage to fit your exact business needs. After you answer a few questions with our instant quote process, we’ll share options with pricing for your business.

We operate entirely online to make the process streamlined and easy. You can get completely covered in a matter of minutes and licensed advisors are ready to help if you need them.

 

What is the cost of General Liability insurance for your profession?

So what is the average cost of general liability insurance? Here are the median monthly premiums of general liability insurance for different professions:

 

How do limits impact the cost of General Liability insurance?

A policy limit is the maximum amount of money an insurance company will pay for a claim.

General liability policies have a per occurrence limit (the maximum amount for one claim) and aggregate limits (the maximum amount of coverage during the policy period, usually one year). Once you’ve reached that limit, you’re responsible for paying whatever’s left over.

For example, let’s say you have a general liability policy with a $1 million limit. You have a single-occurrence claim for damage to a client’s home that will cost $1.2 million. This means that you would have to pay $200,000 out of pocket.

If you want greater protection from damages and incidents, you’ll need higher coverage limits on your insurance policy. Which means that you’ll also pay more for that policy. 

The majority of general liability customers choose a policy with at least $1 million limits.

The right amount of coverage for your business depends on your individual needs and how comfortable you are with your exposure to financial risks.

 

How can you reduce General Liability insurance costs?

You can take several steps to lower your premium rates and reduce your general liability business insurance cost:

Keep your risk level low

A safety and training plan can help to limit the likelihood of filing insurance claims and raising your insurance costs, particularly if your small business involves working on other people’s property or involves dangerous work that could cause injuries.

For example, you might:

  • Make sure you and your employees are property trained
  • Focus on work that you know how to do
  • Don’t do jobs that you aren’t trained to do
  • Make sure you have coverage for the work you do
  • Keep your job site secure so no one gets hurt
  • Regularly clean up your job site so no one trips on cords or tools
  • Pay attention to the weather if it could cause damage to a job site

Learn from previous claims

Analyze your previous claims and figure out what you could have done to avoid those risks.

For instance, your ladder wasn’t tall enough and it collapsed when you were on the top step. Luckily, you weren’t hurt, but the ladder went through a window. Next time, you could use scaffolding or a taller ladder.

Pick the right limits and deductible

Lower limits will save you money, but you will have higher exposure to risks if you don’t get enough coverage. And if you choose a higher deductible, you will pay less for the policy (a deductible is the amount of money you pay before your insurance policy kicks in).

Bundle more than one policy

You automatically save 10% if you combine more than one type of policy together. For example, if you add a commercial auto policy to your existing general liability policy, you’ll save 10% right off the bat.

 

How do I get a quote for General Liability business insurance?

You can start an instant quote with NEXT to see how much general liability business insurance will cost for your business. 

We’ll ask you some basic questions about how you do business, which we’ll use to create a customized insurance quote.

You can adjust the limits when you receive your quote. If you decide to purchase, you’ll be covered as soon as you’ve bought the insurance you want, and you’ll have instant access to your certificate of insurance.

Getting insurance through NEXT can be done entirely without talking to an agent. And if you do have questions, our licensed, U.S.-based insurance professionals are ready with the answers.

Contact us if you’re unsure which type of coverage and limit amounts are right for your business.

Start a free instant quote today.