How Much Does General Liability Insurance Cost?
Simply Business customers pay a median of $XX per month for General Liability insurance with most customers paying less than $XX per month. Your cost will depend on the type of work you do, your location, annual revenue, policy limits, and claims history.
To see how much you might pay, try our General Liability insurance calculator. You’ll get a quick estimate in just 3 steps. No email required.
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What is General Liability Insurance?
General Liability Insurance (GL), also known as Commercial General Liability (CGL), is foundational coverage for your small business. If a customer gets hurt or their property is damaged because of your work, General Liability can help cover medical bills, repair costs, and legal fees — so one accident doesn’t put everything you’ve built at risk.
What Factors Affect Your General Liability (GL) Cost?
There’s no one-size-fits-all cost for GL — here are some of the factors that may affect your rate:
Industry
The type of work you do can play a big role in your insurance rate. If you run a construction, remodeling, or painting business, you might pay more because your job-site risks are higher. If you’re an online seller or home-based business owner, your risk is generally lower, so your premium may be too.
Median Monthly GL Premium by Industry/Profession
| Profession | Median Monthly Cost1 |
|---|---|
Remodeler | $85 |
| General contractor | $82 |
| Handyperson | $51 |
| Janitorial services | $41 |
| Electrician | $36 |
| Landscaping services | $33 |
| Housekeeping | $29 |
| E-commerce and online retailers | $27 |
| Beautician/cosmetologist | $21 |
| Craft vendor | $20 |
1Data from Simply Business customers who purchased a general liability policy from July 1, 2025 to December 31, 2025. The median costs shown are for illustrative purposes only; actual premiums vary by state, coverage limits, and individual business risk.
Location
Where you work matters. Businesses in dense urban areas or in states with high litigation rates generally pay more than those in smaller markets. Foot traffic factors in, too — a busy storefront has more exposure to slip-and-fall claims than a quiet office or home-based business, and premiums generally reflect that.
Median Monthly GL Premiums by State
The average cost for GL insurance in the U.S. is $40/mo., based on the average cost of state premiums from Simply Business customers. Here’s a look at the median monthly costs for some of the states we serve.
| State | Median Monthly Cost2 |
|---|---|
| Florida | $47 |
| Colorado | $44 |
| New Jersey | $44 |
| South Carolina | $43 |
| Texas | $43 |
| Georgia | $42 |
| North Carolina | $41 |
| Pennsylvania | $41 |
| California | $35 |
| New York | $32 |
2Data from Simply Business customers in the identified states, who purchased a general liability policy from July 1, 2025 to December 31, 2025. The median costs shown are for illustrative purposes only; actual premiums vary by state, coverage limits, and individual business risk.
Annual revenue and business size
The bigger the operation, generally the more exposure and the higher the premium. Carriers typically use your annual revenue, and sometimes gross payroll or employee count, to gauge size.
Policy limits
Higher coverage usually means a higher premium, but it also means more protection if something goes wrong. A $1 million policy is solid protection for many types of lawsuits or accidents without overdoing it, and it’s often the minimum amount required by client contracts or commercial landlords.
Claims history
Your track record counts. While accidents can always happen, a clean claims history signals that you run a safe, low-risk operation, while past claims will often push your rate higher.
How To Save on General Liability Insurance
- Reduce your risks
Fewer claims can mean lower rates. That’s why risk management should be a top priority:
→ Learn from past claims and put steps in place to prevent future mishaps.
→ Train your team on safety procedures and best practices.
→ Keep your space safe by minimizing risks like trip hazards.
→ Create clear policies for workplace conduct, social media use, and customer interactions. - Bundle Your Policy
Customers who bundle their General Liability and Commercial Property insurance (for damaged gear) into a Business Owner’s Policy can see significant savings from buying these policies separately. - Shop Around
Simply Business provides customized coverage options from top-rated small business insurance providers — all in just 10 minutes. We do the legwork so you can sit back, compare quotes, and save. - Pay Annually
Some insurance carriers offer a discount if you pay your annual premium in one lump sum rather than breaking it down into monthly installments.
Simply Business gives you access to top carriers:
What Some Customers are Paying for General Liability2
California
Electrician
- Limited Liability Company (LLC)
- Occurrence limit: $1M
- Aggregate limit: $2M
- Deductible: $0
- Quoted May 2026
$67/month
Texas
Lawn care services
- Sole proprietorship
- Occurrence limit: $1M
- Aggregate limit: $2M
- Deductible: $0
- Quoted May 2026
$47/month
Ohio
Handyperson
- Limited Liability Company (LLC)
- Occurrence limit: $1M
- Aggregate limit: $2M
- Deductible: $0
- Quoted May 2026
$116/month
2These examples are real insurance quotes generated on the dates above. They are for illustration purposes only. Your coverage options and pricing may differ based on the information you provide us about your particular business, the state you operate in, the number of employees, and other factors.
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General Liability FAQs
What does General Liability (GL) Insurance cover?
A General Liability (GL) policy — also called Commercial General Liability (CGL) — helps cover claims involving:
- Legal defense and payouts: Attorney fees, court costs, and any resulting settlements or judgments up to your policy limits.
- Third-party bodily injury: Medical bills and lawsuits if a customer slips and falls at your shop.
- Third-party property damage: Repair costs if you accidentally break an item at a client’s home.
- Personal and advertising injury: Lawsuits involving slander, libel, or copyright infringement in your marketing materials.
What is NOT covered by a GL policy?
A standard General Liability (GL) or Commercial General Liability (CGL) policy generally won’t help with:
- Damage you caused on purpose
- Injuries to your own employees
- Damage to your own property, equipment, or completed work
- Mistakes in your professional services or advice
- Auto-related accidents
Does General Liability cover my subcontractors?
Not directly. Most General Liability (GL) policies provide protection for you if a subcontractor’s mistake leads to a lawsuit against your business, but they do not cover the subcontractor themselves. Insurers typically expect subcontractors to carry their own GL coverage, with the hiring contractor named as an Additional Insured on the sub’s policy.
Before sending a sub out on a job, ask to see their Certificate of Insurance (COI) and confirm with your insurer whether your policy covers work performed by others.
Do small businesses need GL insurance?
In many cases, yes. General Liability (GL) is foundational coverage that helps protect your business from costly lawsuits — and it’s often needed to land work. Here are some common situations where GL is required:
- Renting business space: Landlords typically require GL coverage before handing over the keys to a retail shop, office, or studio.
- Trade licensing: Electricians, plumbers, HVAC contractors, and general contractors often need proof of liability insurance to obtain or renew a license.
- Client contracts: Property managers, home warranty companies, and big-box retail install programs typically won’t dispatch a job without a Certificate of Insurance (COI).
Can I get a Certificate of Insurance (COI) immediately?
Yes. COIs for most policies are available as soon as you purchase your coverage. With Simply Business, you can download and share your COI instantly through your online account or right from your phone — useful when a client, landlord, or licensing board needs proof of coverage before you can start work.
Do I need GL if I’m a sole proprietor?
It is highly recommended. As a sole proprietor, you and your business are the same for legal purposes, which means a lawsuit against your business is a lawsuit against you personally. Without General Liability (GL) coverage, your personal finances could be on the line if a client gets hurt or their property is damaged because of your work.
Whether you’re a freelance consultant, a home-based craft seller, or a one-person trade business, GL helps shield you from the financial fallout of a covered claim.
How much General Liability coverage do I actually need?
For most small businesses, a $1 million per-occurrence and a $2 million aggregate policy is common. That means up to $1 million for any single claim, and up to $2 million in total payouts over your policy year.
Higher limits can make sense if you work on bigger jobs, sign contracts that require more coverage, or have higher exposure to costly claims. A few things to consider:
- Client requirements: Some contracts, leases, or licensing boards spell out minimum coverage amounts.
- Job size and risk: Bigger projects, more foot traffic, or higher-value client property usually call for higher limits.
- What you’d lose: If a single lawsuit could wipe out your business, more coverage is worth the modest bump in premium.For most small businesses, a $1 million per-occurrence and a $2 million aggregate policy is common. That means up to $1 million for any single claim, and up to $2 million in total payouts over your policy year.
Can I buy a short-term or project-specific GL policy?
Simply Business offers annual General Liability (GL) policies, which protect your business across all your jobs and projects throughout the policy year. For most small businesses, this is the more practical and cost-effective option, because it covers everything from routine jobs to one-off projects without gaps in coverage.
Is General Liability (GL) insurance tax-deductible?
Yes. Premiums for Commercial General Liability (CGL) Insurance are generally considered a tax-deductible business expense. Keep records of your payments throughout the year so they’re easy to claim at tax time, and always check with your accountant or tax professional to confirm what applies to your specific business.
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More Helpful Information About Professional Liability Insurance
*The displayed price for each product is a monthly estimate calculated from the 10th percentile of relevant policies sold by Simply Business (e.g., General Liability data is used for General Liability estimates). This estimate uses data from relevant policy sales between July–December 2025. Final price and payment terms, which may include an initial down payment, are subject to change based on your state, selected insurance provider, and specific business details.