General Liability Insurance Costs (2025 Guide)

By Mark Fitzpatrick

Edited by Venus Zoleta

Updated: September 24, 2025

Advertising & Editorial Disclosure

Key Takeaways

General liability insurance costs range from $178 to $12,780 annually, depending on your state and industry.

Industry type, business size, claims history and coverage limits impact your general liability insurance cost the most.

Compare multiple insurers, pay annually, determine actual coverage needs and bundle policies for immediate savings.

How Much is General Liability Insurance?

Your general liability insurance costs between $15 and $1,073 monthly, with most small businesses paying around $104, based on our study. Your industry causes the biggest cost differences. If you run a pressure washing business, expect to pay $918 monthly due to slip hazards and property damage risks. Drone operators pay just $17 monthly because they work away from customers and handle equipment remotely.

Your location and business size also affect costs. You'll pay 34% more in high-litigation states, and larger businesses with higher revenue face higher premiums. Knowing these factors helps you budget for small business insurance coverage.

LEARN MORE ABOUT GENERAL LIABILITY INSURANCE

These guides explain what general liability insurance covers, whether your business needs it and how it compares to other policies you're considering:

Average Commercial General Liability Insurance Cost by Industry

Your industry drives cost differences more than any other factor. If you run a construction company, you'll pay almost 12 times more than consulting firms because injuries happen frequently on job sites. Restaurant and retail business owners pay double to four times more than home-based businesses because customers can slip and fall on their premises.

Coverage for excavation and roofing businesses (both high-risk trades) costs you $200 to $400 more monthly than the average. As an accountant or software developer, you have cheaper business insurance coverage, paying $75 to $80 less than average.


Accountants	$22	$266
Ad Agency	$36	$429
Auto Repair	$153	$1,839
Automotive	$54	$643
Bakery	$91	$1,089
Barber	$45	$537
Beauty Salon	$67	$806
Bounce House	$70	$846
Candle	$55	$661
Cannabis	$67	$807
Catering	$89	$1,064
Cleaning	$133	$1,596
Coffee Shop	$90	$1,083
Computer Programming	$29	$353
Computer Repair	$48	$572
Construction	$177	$2,125
Consulting	$22	$265
Contractor	$256	$3,067
Courier	$196	$2,353
DJ	$26	$307
Daycare	$33	$396
Dental	$22	$259
Dog Grooming	$64	$763
Drone	$17	$201
Ecommerce	$73	$882
Electrical	$113	$1,353
Engineering	$40	$482
Excavation	$468	$5,617
Florist	$43	$517
Food	$108	$1,296
Food Truck	$141	$1,693
Funeral Home	$61	$728
Gardening	$113	$1,353
Grand Total	$104	$1,242
HVAC	$246	$2,956
Handyman	$245	$2,943
Home-based	$24	$287
Home-based	$45	$546
Hospitality	$66	$790
Janitorial	$138	$1,653
Jewelry	$41	$490
Junk Removal	$163	$1,957
Lawn/Landscaping	$121	$1,453
Lawyers	$23	$275
Manufacturing	$65	$782
Marine	$28	$337
Massage	$97	$1,160
Mortgage Broker	$23	$276
Moving	$125	$1,499
Nonprofit	$36	$432
Painting	$144	$1,733
Party Rental	$80	$957
Personal Training	$24	$288
Pest Control	$32	$388
Pet	$56	$675
Pharmacy	$62	$746
Photography	$24	$292
Physical Therapy	$113	$1,352
Plumbing	$363	$4,361
Pressure Washing	$918	$11,022
Real Estate	$53	$635
Restaurant	$146	$1,753
Retail	$66	$790
Roofing	$389	$4,672
Security	$140	$1,675
Software	$27	$319
Spa/Wellness	$107	$1,281
Startup	$29	$346
Tech/IT	$27	$320
Transportation	$38	$453
Travel	$21	$252
Tree Service	$131	$1,567
Trucking	$103	$1,234
Tutoring	$31	$367
Veterinary	$45	$539
Wedding Planning	$28	$336
Welding	$166	$1,987
Wholesale	$45	$538
Window Cleaning	$160	$1,919
snack bars	$118	$1,414
speech therapist	$31	$377

Note: We analyzed quotes from major insurers for small businesses with two employees across 79 industries. Your actual costs depend on your specific business size, location, claims history and coverage limits.

Average Cost of General Liability Insurance by State

Your location affects general liability insurance cost by 34% because some states have more lawsuits and higher court awards. New York businesses pay $1,444 annually for the same coverage that costs $1,076 in Maine and North Carolina. The states with the cheapest general liability rates are Maine, North Carolina and Virginia, where annual rates are under $1,150.


Alabama	$101	$1,217
Alaska	$95	$1,143
Arizona	$98	$1,174
Arkansas	$99	$1,192
California	$115	$1,384
Colorado	$103	$1,232
Connecticut	$112	$1,350
Delaware	$111	$1,333
Florida	$112	$1,345
Georgia	$105	$1,262
Grand Total	$104	$1,242
Hawaii	$112	$1,343
Idaho	$98	$1,178
Illinois	$114	$1,364
Indiana	$101	$1,212
Iowa	$99	$1,183
Kansas	$101	$1,207
Kentucky	$96	$1,151
Louisiana	$118	$1,420
Maine	$90	$1,076
Maryland	$99	$1,185
Massachusetts	$109	$1,303
Michigan	$98	$1,176
Minnesota	$97	$1,165
Mississippi	$104	$1,248
Missouri	$102	$1,227
Montana	$103	$1,237
Nebraska	$98	$1,175
Nevada	$117	$1,405
New Hampshire	$103	$1,235
New Jersey	$117	$1,407
New Mexico	$104	$1,249
New York	$120	$1,444
North Carolina	$90	$1,076
North Dakota	$90	$1,080
Ohio	$96	$1,153
Oklahoma	$98	$1,178
Oregon	$96	$1,154
Pennsylvania	$119	$1,432
Rhode Island	$114	$1,365
South Carolina	$107	$1,279
South Dakota	$97	$1,161
Tennessee	$101	$1,212
Texas	$104	$1,253
Utah	$98	$1,179
Vermont	$99	$1,193
Virginia	$94	$1,131
Washington	$118	$1,413
West Virginia	$109	$1,303
Wisconsin	$102	$1,219
Wyoming	$96	$1,149

Note: MoneyGeek analyzed quotes from major insurers for small businesses with two employees across all 50 states. Actual costs vary based on your business type, size, claims history and coverage needs.

Factors Affecting General Liability Insurance Cost

Five business insurance cost factors determine your premium more than any marketing claims or broker relationships. We've broken them down and shown how they impact your rate:

Industry Type

Your industry classification code sets your base rate. If you work in an office, you'll start at $22 monthly. Run a construction company, and you'll pay over seven times more at $158 monthly.

Business Size

Bigger businesses mean bigger risks. Your cleaning company with $200,000 in annual revenue pays $130 monthly. Triple that to $600,000 and you'll face a 50% increase, bringing your monthly rate to $195.

Claims History

One bodily injury claim pushes your rates up by 25% to 50% for three to five years, regardless of fault. Keeping a clean record for five years earns you a 10% to 20% discount.

Coverage Limits

Doubling your limits from $1 million per claim and $2 million in total coverage to $2 million and $4 million, respectively, costs 15% to 25% more. Your restaurant's $148 monthly premium becomes $178 monthly for more financial protection.

Location

Your state affects rates because some states have more lawsuits than others. For example, food truck owners in New York pay 33% more than those in Maine for the same coverage.

Strategies to Get Cheap General Liability Insurance

These strategies reduce your premiums without compromising the financial protection your business needs. Getting the right coverage at the best rates means shopping strategically and making smart policy choices.

1
Determine your actual coverage needs
Many businesses overpay by buying more coverage than necessary. Carefully assess your risk exposure and choose limits that match your needs rather than defaulting to maximum coverage. Working with an insurance professional also helps you find coverage that balances financial protection and cost.
2
Shop multiple insurers
Identical coverage varies by 20% to 40% between insurers due to different risk models and underwriting approaches. Your restaurant's coverage cost might range between $118 to 178 monthly for the same $1 million/$2 million limits across major carriers, so definitely shop around.
3
Pay annually instead of monthly
Annual payment eliminates 8% to 12% financing fees insurers charge for monthly payment plans. You'll pay $1,404 yearly instead of $1,560 for monthly billing, saving $156 annually while getting immediate discounts without changing your coverage.
4
Increase your deductible.
Raising your deductible from $500 to $2,500 reduces premiums by 15% to 25% by accepting more initial risk. You'll save $50 monthly, but must budget $2,000 more to cover the deductible in the event of a claim.
5
Bundling your policies
You'll save 15% to 30% with business owner's policies versus separate general liability and property coverage. Adding workers' comp gives you another 10% to 15% multi-policy discount. Bundling saves contractors $78 monthly versus buying different coverage types separately.
6
Implement safety programs
Documented safety programs that reduce claim frequency earn you 5% to 15% discounts. With certified safety programs, your roofing business could cut monthly premiums by $58.
7
Keep your claims record clean
You'll earn experience discounts of 10% to 20% over time by maintaining a clean claims history. Going three years without filing a claim reduces your premiums significantly compared to businesses that frequently submit losses.

Cost of General Liability Insurance: Bottom Line

General liability insurance costs range from $15 to $1,073 monthly. Your industry and business size drive most of the difference, though claims history and coverage limits also play a part. Shopping multiple insurers, paying annually instead of monthly and bundling policies can result in more affordable general liability insurance premiums.

Commercial General Liability Insurance Cost: FAQ

We provided the answers to frequently asked questions small business owners have about general liability costs:

How much is general liability insurance for a small business?

You'll pay $17 to $918 monthly for general liability insurance, averaging $101 monthly. Your costs depend on industry risk. If you operate drones, expect $17, while pressure washing businesses pay $918. Your business size, location and claims history also affect your premium.

What factors affect general liability insurance rates most?

Your industry impacts costs the most. If you run construction, you'll pay seven times more than consulting. Business size, claims history, coverage limits and location follow. High-risk industries face frequent liability claims, making your coverage significantly more expensive than office-based businesses.

How can I reduce costs for general liability insurance?

Shop multiple insurers since identical coverage varies 20% to 40% between companies. Pay annually to eliminate 8% to 12% financing fees. Bundle your policies for 15% to 30% savings, increase your deductibles and implement safety programs. These strategies reduce your premiums without compromising financial protection.

Do I need general liability insurance for my business?

Most states don't legally require general liability insurance, but many contracts and leases mandate coverage before you can operate. If you have customer interaction, physical premises or service delivery, you should carry financial protection against liability claims.

How long does it take to get general liability insurance?

You can get general liability insurance quotes within minutes online, and coverage starts immediately upon payment. If you're in a high-risk industry, you may need additional underwriting, extending the process to 24 to 48 hours.

What coverage limits should my small business choose?

Choose $1 million per occurrence and $2 million aggregate limits to balance financial protection and affordability. Doubling your limits to $2 million and $4 million costs 15% to 25% more but provides additional coverage if you face large lawsuits or high-value contracts.

Can I get general liability insurance with a bad claims history?

Yes, but you'll pay 25% to 50% more for three to five years after a claim. Some insurers specialize in high-risk businesses. Shop multiple carriers since companies evaluate your claims history differently, and consider higher deductibles to reduce your premiums.

How We Determined General Liability Insurance Costs

We focused on cost, analyzing general liability insurance premiums for small businesses across different industries and states.

Every quote used identical parameters to ensure fair comparisons:

Two employees (three people in total, including the owner)
$150,000 annual payroll
$300,000 annual revenue
Already insured status
$1 million/$2 million aggregate coverage

This profile represents small businesses that opted to purchase general liability insurance. We chose companies offering broad national coverage and online quote capabilities.

About Mark Fitzpatrick

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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General Liability Insurance Cost