Key Takeaways

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Overall, the best general liability insurance company in Maryland is Nationwide, which has a great balance of affordable rates for LLCs and good customer service.

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The cheapest general liability insurance for sole proprietors in Maryland is offered by NEXT at $27 per month. For LLCs, NEXT is the most affordable option at $3 a month.

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General liability insurance costs in Maryland depend on your industry, and we found they can range from $29 to $1,896 per month on average.

Best Cheap General Liability Insurance in Maryland

Nationwide emerged as the top contender for Maryland’s best general liability insurance in MoneyGeek’s analysis with a score of 95 out of 100. However, NEXT, The Hartford, Thimble and Hiscox are also great options for general liability policies.

Nationwide95$35$37
NEXT90$27$3
The Hartford90$34$55
Thimble86$24$58
Hiscox83$32$85

*Rates were based on a $1,000,000 per occurrence and $2,000,000 aggregate limit for a software development company.

Nationwide

Nationwide: Best Overall

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pros

  • Low rates for LLC businesses

  • Large coverage selection

  • Low customer claims frequency

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cons

  • Higher rates for sole proprietors

COMPANY HIGHLIGHTS

The top spot for general liability insurance in Maryland goes to Nationwide due to its competitive prices and strong customer experience. Sharing the top spot for minimal claims ratios according to NAIC statistics, it's also the second most affordable option for LLCs at $37 monthly.

Next

NEXT: Cheapest Overall

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pros

  • Easy fast buying process

  • Very cheap rates overall, regardless of business size

  • Business-insurance-only focus

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cons

  • Higher customer complaint frequency

COMPANY HIGHLIGHTS

NEXT is the cheapest overall provider of general liability insurance in Maryland, no matter what size your business is. It offers average rates of just over $30 for LLCs while sole proprietors pay about $27 per month. While its claims ratio was higher than its competitors, their overall buying process was smooth, and you can get proof of insurance within the same day.

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How Much Is General Liability Insurance in Maryland?

An average general liability insurance policy in Maryland typically costs around $29 per month for sole proprietors and $52 per month for LLCs. However, this only represents software development companies and the costs can vary widely by industry.

Cleaning$1,240$70
General Contractor$1,896$101
Software Development$52$29

*Rates are based on a $1,000,000 per occurrence and $2,000,000 aggregate coverage policy for general liability.

Factors That Impact General Liability Insurance Costs in Maryland

General liability insurance costs can fluctuate based on a number of different factors in Maryland. In the list below, you can see these factors and their impacts on your coverage costs:

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    Policy limits

    Coverage limits have a significant impact on insurance premiums. Opting for higher limits can lead to increased costs, while choosing lower limits often results in more affordable premiums.

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    Number of employees and payroll costs

    Businesses with a large workforce and high payroll expenses may experience higher general liability insurance costs. This trend is evident in both LLCs and sole proprietorships.

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    Business location

    Where a business is located plays a crucial role in determining insurance costs. State-level average rates can differ from city to city, making it essential to consider these variations when assessing coverage needs.

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    Claims history

    A business with a history of multiple claims may be perceived as riskier by insurers, which can lead to higher premiums.

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    Industry

    Industries with inherent risks, such as construction, tend to incur higher general liability insurance costs.

Maryland General Liability Insurance: Buyer's Guide

Business insurance is a complicated industry and can be difficult to navigate. So, to simplify your understanding of general liability insurance, we've created a short guide detailing how to get the best coverage, defining what it covers, listing requirements in Maryland, and explaining how much coverage you should consider getting.

How to Find the Best General Liability Insurance Company

To help ensure that you get the best small business insurance regardless of your industry, we've created a step-by-step guide to simplify your coverage search.

  1. 1

    Define your coverage needs

    Find out your liability risk by considering your industry, products or services, customer types, business size and market impact. To evaluate coverage options better, measure the frequency and costs of common claims in your industry.

  2. 2

    Research average costs for your business

    To understand how good of a deal you're getting from business insurance companies, you need to research average costs for your particular business. Knowing average expenses will give you a way to judge whether a company is saving you money or not.

  3. 3

    Consult similar businesses

    You can get recommendations from businesses that are better for your specific needs and understand what claims are common within your industry. They may also provide ways to mitigate risks associated with general liability insurance, so you don't need more coverage than necessary.

  4. 4

    Compare multiple options through different means

    Comparing multiple companies helps you judge which option is best for your business. Also, choosing multiple means of comparison, like online comparison sites and brokers, will give you a more comprehensive view of pricing and provide more opportunities for advice.

What Does General Liability Insurance Cover and How Does It Work?

 

General liability insurance coverage consists of two parts: per occurrence and aggregate limits. Per occurrence refers to the maximum a single claim can go up to, while the aggregate limit is the total coverage you can get per year. In terms of covered items, this type of policy includes the following:

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Bodily injuries or property damage on business property

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Legal fees for bodily injury or property damage that your company may be responsible for

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Damages to leased or rented business property

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Bodily injury or property damage caused by your product or service

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Libel, slander, or reputational harm legal defense

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Legal fees for copyright infringement accusations

Is General Liability Insurance Required in Maryland?

Like in most states, general liability insurance isn't expressly required by state law and instead varies by your industry. However, if you are looking to apply for a professional license, sign a contract with a larger company, or sign an office lease, some form of general liability insurance may be required. While not an exhaustive list, the following industries tend to fall into these categories:

  • Medical
  • Accounting
  • Real estate
  • Insurance
  • Contracting
  • Engineering
  • Marketing
  • Law
  • Consulting
  • Media/Communications

How Much General Liability Insurance Do I Need?

Most small businesses will only need a standard policy with 1 million dollars of protection per occurrence and a 2 million limit per year. This will likely cover most or all damages caused over a year for most business types. Even so, your particular industry's risks and the size of your operation may require a larger coverage limit than standard.

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WHO MAY NEED MORE COVERAGE

Some businesses face more risks and often need more insurance protection. These include companies in health care, building, serving food and drinks, selling things, and doing special jobs like plumbing or electrical work. If your company is one of these, you might need to think about getting more insurance.

Best General Liability Insurance in Maryland: Bottom Line

Overall the best general liability insurance companies in Maryland are Nationwide, NEXT, and The Hartford. However, we recommend comparing around yourself and getting plenty of quotes to ensure you get the best deal possible.

General Liability Insurance in Maryland: FAQ

Below, we address frequently asked questions regarding general liability insurance in Maryland:

Which company has the best general liability insurance in Maryland?

Which company has the cheapest general liability insurance in Maryland?

Does Maryland require businesses to have general liability insurance?

How We Chose the Best General Liability Insurance Providers in Maryland

We broke down our scores into these categories and weights:

  • LLC cost (55% of score)
  • Sole proprietor cost (5% of score)
  • Customer satisfaction (25% of score)
  • Financial strength (10% of score)
  • Quote process time (5% of score)

For all business insurance companies, we assumed software development industry LLCs with 20 employees. We based customer satisfaction and financial strength scores on NAIC and AM Best ratings. Quote process scores came from our MoneyGeek experts' personal experiences.

About Mark Fitzpatrick


Mark Fitzpatrick headshot

Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.

Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!

Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.


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