Finding cost-efficient general liability insurance is essential for business owners to save money on premiums while getting the best coverage for their business. On average, general liability insurance costs $342 per year for sole proprietors and $806 per year for LLCs in the software development industry — but note that this can change depending on where you’re located, what your industry is, who your insurer is and more.

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Cheapest General Liability Insurance for Small Businesses

Next offers the cheapest general liability insurance nationwide, offering affordable policies for sole proprietors and LLCs alike, along with a quick quote process. With Next, sole proprietors pay an average of $25 per month, while LLCs pay an average of $29 per month for general liability insurance.

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Cheapest General Liability Insurance by State

Across states, Next and Thimble consistently rank as the cheapest general liability insurance providers. However, this can vary from state to state. Your business’ location has a significant impact on the cost of general liability insurance, as high-risk areas may face more expensive premiums. For instance, insurers may charge more if your business is located in a state prone to floods or earthquakes.

To find the cheapest general liability insurance by state, MoneyGeek collected quotes across the most populated ZIP codes in each state.

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Cheapest General Liability Insurance by Industry

The industry your business is in plays a major role in determining the cost of general liability insurance. For instance, construction and cleaning industries carry a higher risk profile and usually incur higher costs since there is a greater likelihood of an accident involving a third party.

Review the table and filter it by your business structure to see how costs can change based on industries.

Quotes were gathered for the following business profiles:

  • An LLC with five years in business, 20 employees, $5 million in annual revenue and $1,250,000 in annual payroll costs
  • A sole proprietorship with five years in business, no employees, $500,000 in annual revenue and no payroll costs
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Cheapest General Liability Insurance for Employers

With policies costing an average of $29 per month, Next is the cheapest general liability insurance option for LLCs. This average monthly cost is for LLCs with 20 employees. Keep in mind that your rate may differ depending on the number of employees you have.

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Cheapest General Liability Insurance Policy for Sole Proprietors

Sole proprietors looking for cheap general liability insurance can turn to biBERK. With an average cost of $275 per year or $23 per month and high customer satisfaction ratings, biBERK strikes a balance between affordable premiums and excellent customer service, making it a great choice of general liability insurance for sole proprietors.

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Cheap General Liability Insurance FAQs

When it comes to running a business, finding cheap general liability insurance is essential to stay cost efficient. If you're a sole proprietor searching for the cheapest option for your business, we've compiled some frequently asked questions to help you gain a deeper understanding of your options.

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About Melissa Wylie


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Melissa Wylie is a Content and SEO Manager at MoneyGeek. Melissa has worked in the financial content space since 2018 and has spent much of that time focused on all things small business.

Prior to joining MoneyGeek, Melissa held SEO positions at Bankrate and LendingTree. Melissa’s work has also appeared on LendingTree-owned websites ValuePenguin and MagnifyMoney.

Melissa began her career at American City Business Journals in 2015 as a reporter for the company’s women-focused publication Bizwomen. Melissa has a Bachelor of Arts in Journalism from the University of North Texas. Melissa relies on her foundation in journalism to craft content that simplifies complex financial topics to help everyone feel confident when making decisions with their money.

Melissa's other work can be read on LendingTree and Bizwomen.