How much does general liability insurance cost

Learn about general liability costs and how to get the best coverage for your business.

Kim Mercado
By Kim Mercado
Published Mar 12, 2024
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General liability insurance is an essential part of running a business since it helps provide financial protection from common accidents at a business. Several factors will influence how much a business will pay for coverage.

Keep reading to learn more about general liability insurance costs, and what you can do to get the coverage you need for your small business without breaking the bank. You’ll gain valuable insights including:

How much does General Liability insurance cost for a small business?

The cost of general liability insurance differs based on the type of small business you have.

At NEXT, it can cost as little as $19 monthly for some businesses, but the exact price you’ll pay depends on your business location and operations. (More on that below.)

Your general liability insurance policy can help cover expenses if you experience a claim involving an injury to someone who is not an employee (known as bodily injury) or damage to property you don’t own.

How much is Commercial Liability insurance for NEXT customers?

Nearly half of our customers pay less than $45 per month for general liability insurance coverage*.

NEXT monthly general liability cost 802x454 1

Monthly General Liability insurance costs

Under $25

19% of customers

$25 to $45

29% of customers

$45 to $75

18% of customers

$75 to $100

11% of customers

Over $100

24% of customers

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 insurance premiums* of general liability insurance for different professions:

Monthly median General Liability costs by profession


Median cost



Amazon seller




Auto repair shop


Business consultant




Carpet cleaner












Fitness instructor


General contractor




HVAC contractor






Personal trainer




Property manager


Real estate agent




Retail store


Yoga teacher



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

It only takes a few minutes to get a general liability quote for your business with NEXT. We’ll ask basic questions about how you do business, which we’ll use to create a customized insurance quote based on your operations.

You can adjust the limits and add additional recommended coverages. If you decide to make a purchase, you’ll be covered after you make a payment and have instant access to your certificate of insurance. Getting insurance through NEXT can be done entirely without talking to an agent. But if you do have questions, our licensed, U.S.-based insurance advisors are ready to help.

What factors influence the cost of general business liability insurance?

Your specific commercial general liability insurance cost is determined by several factors that are used to determine if your business has high-risk or low-risk business operations. These include:

The type of work you do

Higher-risk businesses could be more likely to have a claim involving an injury and property damage. In general, jobs that include working on other people’s property often have higher insurance costs.

Number of employees

If you employ seven people, your insurance could cost more than if you work alone.

Your claims history

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

Your work experience

For example, if you have 25 years of experience and no claims, you can probably expect to pay less than someone who’s been in business for two years and has experienced an insurance claim.

How high you set your limits

Higher coverage limits offer more financial protection, but will almost always increase the amount of your insurance premium. Still, you could pay less out-of-pocket if there is a claim.

The state where you work

This is partly due to different states having different regulations and partly because insurance rates are sometimes higher in densely populated areas that experience more business property claims.

These are only a few common factors that affect your costs. Insurance providers take into account many other factors, including external factors such as economic conditions and market trends.

Note: It’s important to provide the most accurate information about your business when you get a general liability insurance quote to ensure you get the right type of coverage and there are no delays in processing claims.

How policy limits impact the cost of General Liability insurance

General liability policies have per-claim limits and aggregate limits. Once the limit is reached, you’re responsible for paying whatever’s left over.

For example, say you have a general liability policy with a $500,000 limit with no deductible. If you damage a client’s home that will cost $600,000 in a single claim, you would have to pay $100,000 out of pocket.

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

Many general business liability customers opt for a policy with at least $1 million limits. The appropriate coverage depends on individual needs and your financial risk tolerance.

How to reduce General Liability insurance costs

You can take several steps to reduce your general liability business insurance cost:

1.Bundle more than one policy

In addition to the risks general liability insurance covers, many businesses need more than one type of business insurance coverage.

You can save up to 10% if you purchase more than one type of business insurance with NEXT.

General liability insurance is often combined with commercial property for what’s known as a business owner’s policy (BOP) for additional savings.

Insurance packages also often include a combination of general liability and:

For example, if you add workers’ compensation coverage with your general liability policy, you could save 10% right off the bat.

2. Keep your risk level low

A safety and training plan can help limit the likelihood of filing insurance claims and raising your policy costs. For example, you might:

  • Make sure you and your employees are properly trained
  • Focus on work that you know how to do
  • Don’t do jobs that you aren’t trained to do or didn’t get insurance to cover
  • Make sure you have coverage for the work you do
  • Keep your business or job site secure
  • Keep your business and work area clean so no one trips on cords, furniture, equipment or tools
  • Take steps to mitigate property damage and injuries from rain, wind, snow and inclement weather.

3. Learn from previous claims

Examine your previous claims history and determine what you may have done to avoid or lessen such risks.

4. Pick the right limits and deductible

Although lower limits will save you money, if you don’t purchase enough coverage, you could be more vulnerable to financial losses. Having higher deductibles may help you save some money.

Additional General Liability insurance resources

Frequently Asked Questions

Compare General Liability insurance

Related terms

Kim Mercado
About the author
Kim Mercado is a content editor at NEXT's blog, where she writes and edits posts for small business owners. She enjoys helping entrepreneurs solve their business challenges and learn about insurance. Kim has contributed to Salesforce, Samsara and Google.

You can find Kim trying new recipes and cheering the 49ers.

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This is the minimum cost of general liability coverage for your business type and location. To determine eligibility and a final price, start a detailed quote.
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* The cost data presented here are based on NEXT active customers in the U.S. who purchased general liability insurance over the previous 12 months. These data should not be considered a substitute for obtaining a quote specific to your business. These data were updated in January 2024.
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Issuance of coverage is subject to underwriting. Not available in all states. Please see the policy for full terms, conditions and exclusions. Coverage examples are for illustrative purposes only. Your policy documents govern, terms and exclusions apply. Coverage is dependent on actual facts and circumstances giving rise to a claim. Next Insurance, Inc. and/or its affiliates is an insurance agency licensed to sell certain insurance products and may receive compensation from insurance companies for such sales. Policy obligations are the sole responsibility of the issuing insurance company. Refer to Legal Notices section for additional information.

Any starting prices or premiums represented before an actual customer quote are not guaranteed and are representations of existing premiums of active policies as of December 6, 2023. To the extent permitted by law, applicants are individually underwritten, not all applicants may qualify. Individual rates and savings vary and are subject to change. Discounts and savings are available where state laws and regulations allow, and may vary by state. Certain discounts apply to specific coverages only.