How Much Does General Liability Insurance Cost?
The most common business insurance question — answered with real numbers. Updated August 2026.
Backed by Munich Re. 750,000+ businesses insured. Get your certificate of insurance instantly.
General Liability Insurance Cost by Business Type
General liability (GL) insurance is the foundation of every small business insurance program. It covers third-party bodily injury, property damage, and personal injury claims — and most businesses need it to sign leases, win contracts, and operate legally.
| Business Type | Avg. Monthly Cost |
|---|---|
| Freelancer / Consultant | $40–$65/mo |
| House Cleaning / Janitorial | $55–$100/mo |
| Retail Store | $70–$150/mo |
| Restaurant / Food Service | $150–$300/mo |
| Landscaping / Lawn Care | $80–$200/mo |
| General Contractor | $150–$400/mo |
| Roofing Contractor | $200–$600/mo |
| Electrician / Plumber | $120–$350/mo |
What Affects Your GL Insurance Premium?
Insurance carriers use multiple factors to calculate your GL premium. Understanding these helps you get the best rate:
Annual Revenue
Higher revenue = more exposure = higher premium. Carriers rate GL per $1,000 of revenue in most industries.
Industry & Risk Class
A roofing company pays 5-10x more than a bookkeeper for the same GL limit — because the risk of injury and property damage is far higher.
Location
High-litigation states (CA, NY, FL) and dense urban areas have significantly higher premiums than rural Midwest markets.
Claims History
Even one GL claim in the past 5 years can increase your premium 20-35%. A clean record is worth protecting.
Coverage Limits
$1M/$2M is standard. Increasing to $2M/$4M adds roughly 15-25% to your premium.
Deductible
A higher deductible ($500-$2,500) lowers your premium. Only choose this if you can absorb small claims out of pocket.
GL Coverage Limit Options & What They Cost
Most GL policies offer a per-occurrence limit (max per single claim) and an aggregate limit (max per policy year). Here is how limits typically affect cost:
| Per-Occurrence / Aggregate | Who Needs It | Typical Cost Premium |
|---|---|---|
| $300K / $600K | Very small businesses, low-risk | Baseline (cheapest) |
| $500K / $1M | Small retail, home-based services | +10–15% over baseline |
| $1M / $2M | Most small businesses (standard) | Most common, widely required |
| $2M / $4M | Contractors, higher-risk trades | +15–25% over $1M/$2M |
| $5M+ | Government contracts, large commercial | Umbrella policy recommended |
How to Lower Your GL Insurance Premium
- 1.Bundle into a BOP (Business Owners Policy) if you have commercial property — you get GL + property at a 15-25% discount versus buying separately.
- 2.Maintain a clean claims history. Avoid filing small claims you can pay out of pocket.
- 3.Pay your premium annually instead of monthly — most carriers offer 5-10% discounts.
- 4.Complete documented safety training. Some carriers offer credits for OSHA-10 and industry certifications.
- 5.Raise your deductible if you have cash reserves to handle small claims.
- 6.Shop at least 3 carriers before renewing. Rates vary 30-50% between carriers for identical coverage.
Get Your Exact GL Insurance Quote — Free
Takes 10 minutes. No broker calls. Instant certificate of insurance.