MoneyGeek analyzed hundreds of general liability quotes, comparing affordability, customer satisfaction, financial stability and the claims process to bring you the best general liability insurance carriers for an LLC.
MoneyGeek used an LLC with following profile to gather general liability quotes:
- Five years in business in the software development industry
- 20 employees
- $5 million in annual revenue
- $1,250,000 in annual payroll costs
Although the LLC business structure offers a great solution to protect the business owner’s personal assets, it can’t protect against injury or property damage claims. General liability insurance for LLCs can be an affordable way to protect the business’ finances.
Best General Liability Insurance for LLCs
Best Overall General Liability Insurance for LLCs
Nationwide is the overall best general liability insurance company for LLCs. It has the lowest customer complaint score and a long history of strong financial stability, showing its capacity to pay claims. Nationwide is also one of the more affordable providers, with an average general liability insurance cost for LLCs of $560 per year.
MoneyGeek’s Pick: Nationwide
Excellent AM Best financial strength rating
High customer satisfaction
Low average prices for general liability insurance
Longest time to get a quote compared to competitors
Not the cheapest for general liability insurance
Online quotes not available in Alaska, Hawaii, Louisiana and Oklahoma
Despite taking the longest to provide a quote online and not having the lowest price, Nationwide excelled in other areas to make it the pick for best general liability insurance for LLCs. Nationwide has an excellent AM Best financial strength score, which shows its long track record in meeting its obligations, including paying claims. It also has the lowest customer complaint score of all insurers on the list. In states where Nationwide general liability insurance quotes are unavailable online, LLCs can obtain a quote directly from a Nationwide agent.
Runner-Up Best General Liability Insurance for LLCs
The runner-up for best general liability insurance for LLCs is The Hartford. This carrier has excellent financial strength, few customer complaints and is quick to provide quotes online. Its average general liability insurance cost for LLCs is higher than Nationwide’s, at $820 per year compared to Nationwide’s $560.
MoneyGeek’s Pick: The Hartford
Excellent AM Best financial strength score
Fast online quote time
Few customer complaints
More expensive than other carriers
Online quotes not available in Alaska or Hawaii
Although The Hartford isn’t the cheapest general liability insurance option, it earns the runner-up spot with its high customer satisfaction and financial strength scores. LLCs can get quotes online in most states and can speak to an agent to get a quote if the business is based in Alaska or Hawaii.
Cheapest General Liability Insurance for LLCs
If price is the most important factor for insuring your LLC, consider Next for general liability insurance. Next has the cheapest average general liability insurance cost for LLCs, averaging $311 annually. It also offers fast online quotes but has higher-than-average customer complaints and less financial stability than its competitors.
MoneyGeek’s Pick: Next
Cheapest general liability insurance
Quick online quotes
Lowest customer satisfaction score
Average financial strength is low
Online quotes not available in Arkansas or Nevada
Next excels above its competitors in one category: affordability. Those looking for the cheapest carrier may want to consider Next, but be aware that it has the lowest financial strength score on the list and the highest rate of customer complaints. This carrier offers quick online quotes, but online quoting is not available in Arkansas or Nevada.
Best General Liability Insurance for Online Quotes
If you prefer a fast and easy online quote for your LLC’s general liability insurance, consider Thimble as your top choice. Not only does this carrier have excellent financial strength, but it also provides the quickest online quotes, taking most users just 29 seconds to complete the application and get a quote.
Strong AM Best rating
Fastest online quote time
Online quotes available nationwide
Low customer satisfaction score
Affordable, but on the higher side for average cost
Thimble offers online quotes from start to finish in under a minute, and the online quoting system is available in all states. The speedy processing time can help LLCs compare several quotes fast. Although affordable, at an average cost of $808 per year, it’s not the cheapest option. Thimble also has a low customer satisfaction score with higher-than-average customer complaints.
How Much Is General Liability Insurance for an LLC?
The average general liability insurance cost for LLCs is $806 per year or $67 per month for a policy with a $2 million aggregate limit, $1 million occurrence limit and $0 deductible.
Several factors impact insurance costs, including:
- Industry risks: The more risk in the industry, the higher the chance of policyholders filing claims and companies in a higher-risk industry will pay higher rates for insurance.
- Location: Companies in risk-prone locations can pay more for insurance than lower-risk locations. Insurance companies look at factors like weather events and crime to determine rates.
- Number of employees: The more employees you have, the higher your payroll costs, which can increase how much you pay for general liability insurance.
- Previous claims: If your business has prior claims, you could end up paying more for coverage than a claim-free LLC would.
- Coverage: Higher coverage limits provide more protection, but more coverage usually means higher insurance premiums.
What Does General Liability Insurance Cover for LLCs?
General liability insurance protects you against claims filed against your LLC, whether real or unfounded. Claims are typically accusations of the company causing harm to a person or their property. Even if the claim is found to be false, the LLC can incur costly legal fees. General liability insurance for LLCs helps protect the LLC’s assets against third-party or customer claims.
General liability insurance may cover:
- Bodily injury: A customer slips inside a business, breaking their arm as they fall. General liability insurance may pay for their medical costs, regardless of fault.
- Property damage: This coverage will pay if you’re held legally responsible for damage to another person’s property while in your place of business or if your employee causes damage to a customer’s home or business while on the clock.
- Reputational damage: If you’re accused of libel or slander against another business, general liability will cover the cost of your legal defense.
- Copyright infringement: If you’re accused of taking someone else’s marketing idea or using their work without permission, this policy will cover your legal fees.
- Advertising injury: If your LLC defames someone else, a business owner or company, the general liability coverage can cover your defense.
What Isn’t Covered for LLCs?
Although general liability insurance for LLCs has a relatively wide scope, it doesn’t cover every type of claim. General liability insurance typically won’t cover:
- Damaged business equipment: If there is damage to the LLC’s business location or equipment, there is no coverage against claims for fire, theft, wind and other losses.
- Business vehicle accidents: General liability doesn’t cover accidents or events that involve the business’ work vehicles.
- Employee injury or illness: If your employee gets hurt or sick while on the job, general liability doesn’t provide employee benefits.
- Professional services mistakes: If a mistake you make causes your client to suffer monetary damages, there is no coverage under a general liability insurance policy.
Business owners seeking coverage in these areas should consider purchasing additional insurance to protect the LLC and its employees.
Additional Business Insurance for LLCs
While general liability insurance provides basic business coverage, LLCs may need other insurance policies to protect the business adequately.
Additional types of business insurance for LLCs can include:
- Business income insurance: If the business cannot operate, business income insurance can provide coverage for its lost income until it’s back up and running.
- Commercial auto insurance: This policy provides coverage for accidents, damage or injuries you or your employees incur while operating a work vehicle.
- Commercial property insurance: This policy covers the business’ building, equipment and tools, whether you own or rent them.
- Professional liability insurance: Also called errors and omissions insurance, this liability insurance protects the business if a claim is filed for errors or mistakes in provided services.
- Workers’ compensation insurance: Provides employee benefits for work-related injuries or illnesses. Most states have specific coverage requirements to meet.
General Liability Insurance for LLCs FAQs
Owning a business can be profitable, but one claim against the company could be detrimental. Understanding how general liability insurance could protect your business can help you decide if it's the right choice for your LLC.
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About Mandy Sleight, Licensed Insurance Agent