Average General Liability Insurance Costs

General liability (GL) insurance is the most common and typically the most affordable business insurance policy. Based on quotes from 20+ carriers:

Business Profile	Average Monthly Cost	Annual Cost
Home-based / Solo	$19–$35/mo	$228–$420/yr
Small office / Retail	$35–$60/mo	$420–$720/yr
Contractor / Construction	$75–$150/mo	$900–$1,800/yr
Restaurant / Food Service	$60–$120/mo	$720–$1,440/yr
Manufacturing	$80–$200/mo	$960–$2,400/yr

What Determines GL Insurance Pricing?

Classification Code

Insurance carriers assign your business a classification code based on your industry. Higher-risk classifications (roofing, demolition) pay significantly more than lower-risk ones (consulting, IT services).

Revenue

GL premiums are often calculated as a rate per $1,000 of revenue. A business generating $500K in revenue pays roughly double what a $250K business pays, all else being equal.

Coverage Limits

Standard GL limits are $1M per occurrence / $2M aggregate. Here's how limit changes affect pricing:

Limits	Approximate Premium Change
$500K / $1M	-15% to -25%
$1M / $2M (standard)	Baseline
$2M / $4M	+25% to +40%

Location

Premiums vary by state due to different legal environments, court systems, and regulatory requirements. States with higher lawsuit frequencies generally have higher GL rates.

GL Cost by Industry

Industry	Avg Annual GL Cost	Rate per $1K Revenue
IT Consulting	$400–$600	$1.50–$3.00
Marketing / Design	$450–$700	$2.00–$3.50
Retail Store	$500–$1,000	$2.50–$5.00
Restaurant	$700–$1,500	$3.00–$6.00
Plumbing / Electrical	$800–$2,000	$5.00–$10.00
General Contractor	$1,200–$3,000	$8.00–$15.00
Roofing	$2,500–$5,000	$15.00–$25.00

How to Get the Best GL Rate

Compare at least 3–5 carriers — Pricing varies 40%+ for identical GL coverage
Consider a BOP — Bundling GL with property insurance often costs only 15–20% more than GL alone
Right-size your limits — Don't over-insure, but meet all contractual requirements
Ask about pay-as-you-go — Some carriers offer monthly audited premiums based on actual revenue
Maintain clean claims — Each claim can increase your renewal premium by 10–30%

Related Business Insurance Coverages

General liability is usually just one part of a full business insurance stack. Compare related coverage:

General liability insurance — Core GL coverage details and limits
Business owners policy (BOP) — Bundle GL + property and save
Cyber insurance — Protect against data breaches and ransomware
Tech E&O + cyber bundle — Bundled E&O + cyber for tech firms
Workers compensation insurance — Required employee injury coverage

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