The best general liability coverage for your small business is the policy that matches your unique day-to-day risks, meets your contract and licensing requirements, and fits your budget—without paying for coverage you don’t need. There’s no single “best” policy for every business; the right fit depends on your profession, location, and the kinds of accidents you’re most likely to face.

It can feel complicated. We’re here to help.

At Simply Business, we help small business owners quickly and easily compare, buy, and manage general liability policies from top-rated providers. Below, learn exactly what general liability insurance typically covers, real-world examples, what it costs, and how to choose the policy that fits your business the best.

What Does General Liability Insurance Cover?

General liability insurance generally covers common risks small businesses face when working on client properties or interacting with customers. Specifically, it can help cover the costs resulting from bodily injury, property damage, and reputational damage caused by your business—including the cost of legal defense and settlements up to your policy limit.

Here are a few scenarios to help give you a better idea of what general liability insurance covers:

Bodily injury

Let’s say you’re a general contractor performing roof repairs at a client’s house. You’re up on the roof, working away, when suddenly a pile of shingles falls and damages their car, a part of the house or—worst of all—injures them. As a result, you’re left with a large repair or medical bill that you’re responsible for.

That’s where general liability insurance steps in. Depending on your policy limit, this coverage can pay your customer’s bills. It can even cover the cost of a lawsuit if your client decides to sue you for pain and suffering, for example.

Property damage

You run a successful cleaning business with a whole team of employees who go out to clean homes. One of your employees accidentally knocks over and breaks an expensive antique vase while vacuuming a client’s living room. The client demands that you replace the vase or reimburse her for the original purchase.  

Without insurance, you’d be 100% responsible for that bill—and even if you refused to pay it, your client could take you to court. With general liability coverage, your policy may pay the costs to your client, even if she sues your business for property damage.

Reputational damage

You run an advertising campaign that accidentally uses a competitor’s trademarked logo, or you make a claim in your marketing that a competitor argues is false and damages their reputation.  

This is when your general liability insurance may be able to cover your legal costs and resulting payouts, up to your policy limit. 

General Liability Insurance Doesn’t Cover…

• General liability insurance is broad, but it doesn’t cover everything. It typically excludes:
• Employee injuries and work-related illnesses, which are covered by workers’ compensation insurance (typically required by law for businesses with employees, subject to state-specific exemptions) 
• First-party damages
• Your work vehicles, which are covered by commercial auto insurance
• Physical work location damages, often covered by business personal property coverage. 
• Mistakes resulting from your professional advice, which are covered by professional liability insurance
• Punitive damages, which are additional penalties awarded in civil lawsuits for egregious, intentional, or grossly negligent misconduct. 

What to Look for in General Liability Coverage

The best general liability coverage for your small business should match your real-world operations and contract requirements. When comparing policies, focus on these factors:

• Coverage that fits your work: A consultant, a cleaner, and a contractor don’t typically face the same risks. The right policy should reflect the work you actually do.
• Limits that make sense: Most policies include a per-occurrence limit and an aggregate limit (often $1 million/$2 million, depending on the policy you purchase). Choose limits that meet your client contracts and comfort level for your specific business.
• Clear exclusions: Know what isn’t covered so you’re not surprised after a claim.
• Fast proof of coverage: Look for an insurer that lets you download a certificate of insurance (COI) anytime to share with clients and customers.
• Affordable, flexible payments: The cheapest policy may not always be the best for your business. Weigh coverage against cost, and look for monthly or annual payment options.

Best General Liability Coverage by Business Type

The best general liability coverage often depends on your industry and its specific risks. Here’s what to consider prioritizing by business type:

Business type	What to look for
Contractors and trades	Job-site coverage, completed operations coverage, $1M/$2M limits, if available, easy to add additional insureds, fast COI access
Cleaners and janitorial	Property damage coverage for client spaces, coverage for recurring locations, clear exclusions
Consultants and professional services	Premises coverage for client visits, limits that meet lease and contract requirements, and pairing with a professional liability policy separately (highly recommended to consider for advice-based trades)
Retail and e-commerce	Customer injury coverage, product liability, limits that reflect sales volume, coverage for pop-up shops
Restaurants and food businesses	Coverage for dine-in and takeout, product liability for food claims, limits that satisfy landlords
Home-based businesses	Coverage beyond a homeowners policy, protection for client visits, off-site work coverage

Please note: The examples above are for illustrative purposes and may not include all coverage you should consider for your specific business. Simply Business products and offerings may vary and may not include all coverages listed for every trade. Ensure you review your specific policy documents and coverages. 

Simply Business provides general liability coverage for 400+ types of businesses, including emerging and non-traditional trades. If you have questions about what coverage your business needs, we’re here to help.

How Much Does General Liability Insurance Typically Cost?

The median cost¹ of a policy with $1 million in general liability coverage is $41.67 per month, based on Simply Business General Liability policies sold in the second half of 2025.

The table below shows median monthly general liability premiums by profession.

Profession	Median monthly cost
Barber / hair stylist services	$20.83
Beautician / cosmetology services	$20.83
Car detailing	$22.04
Carpentry	$71.58
Catering	$25.00
Cosmetics, toiletries, and personal care stores	$19.92
Craft vendor / crafter	$19.92
Disc jockey	$16.67
Door or window installation and repair	$60.50
E-commerce and online retailers	$27.08
Electrical work	$36.25
Esthetician services	$29.17
Event planning / promotion	$28.92
Floor covering installation	$50.00
Food / beverage cart	$25.00
General contractor	$81.83
Handyperson	$51.25
Home bakery	$22.92
Home inspection	$20.83
Housekeeping	$29.17
Janitorial services	$41.25
Landscaping services	$32.67
Lawn care services	$31.25
Life / career / executive coaching	$25.83
Maid services	$29.25
Management consulting	$25.83
Masonry work	$54.42
Massage therapy	$28.92
Mental health counseling	$28.92
Mobile food truck	$29.17
Nail technician services	$20.83
Painting and wall covering contractors	$45.83
Personal training (health and fitness)	$26.08
Photography	$16.67
Plumbing	$92.38
Professional organizer	$16.67
Remodeling	$85.21
Residential building construction	$106.96
Roofing	$200.50
Siding installation	$83.79
Swimming pool installation, service, or repair	$79.71
Teaching or tutoring	$28.92
Tile, stone, marble, mosaic, or terrazzo work	$48.33
Tree services	$116.67
Trucking & transportation services	$31.08
Videography (freelance)	$16.67
Wedding planner	$20.83
Welding or cutting	$55.92
Yoga / pilates instruction	$20.83

¹Figures show the median (50th percentile) monthly premium for general liability policies sold to trades/professions listed by Simply Business from July 1, 2025 to December 31, 2025. Your actual price may vary based on your business type, revenue, and insurer.

General liability insurance cost depends on your industry, revenue, location, coverage limits, and claims history. Because pricing is individual, two businesses buying the same type of policy can pay very different amounts—which is why comparing personalized quotes matters.

Key factors that affect your general liability cost include:

• Industry and risk level: Higher-risk businesses, like contractors, often pay more than lower-risk professional services.
• Revenue and number of employees: More activity can mean more exposure.
• Location: State laws and local claim trends influence pricing.
• Policy limits and deductible: Higher limits or lower deductibles typically cost more.
• Claims history: Prior claims may increase premiums.

Rather than relying on a one-size-fits-all benchmark, compare quotes tailored to your business.

What Are the Potential Risks of Not Having General Liability Insurance?

The biggest risk of going without general liability insurance is paying out of pocket for a claim that could shut your doors permanently. Even a single lawsuit over a customer injury or property damage can cost thousands in legal fees and settlements.

Many small business owners buy general liability coverage because they need it to:

• Sign a client contract
• Get a license for their profession
• Rent a commercial space

Even when it’s not required, the potentially devastating cost of a lawsuit makes this coverage a smart investment. General liability can help you recover from accidents, while taking steps to reduce your risks can help you avoid claims and keep your premiums low.

How Do I Find the Right General Liability Coverage?

Finding the right general liability coverage comes down to comparing personalized quotes from trusted insurers. Simply Business makes this easy:

1. Tell us about your business. Share details about your profession, location, and coverage needs.
2. Compare personalized quotes. We’ll show you options from top-rated insurers matched to your business.
3. Buy online and get proof of coverage. Purchase your policy and download your certificate of insurance whenever you need it.

Frequently Asked Questions