Independent educational resource. We are not an insurer, broker, or agent, and we do not sell insurance. Cost figures are published industry ranges, not quotes. Always confirm coverage with a licensed professional.
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Independent 2026 cost reference

General Liability Insurance Cost in 2026: What Small Businesses Actually Pay

General liability insurance costs $30 to $100 per month for a typical US small business, which is $500 to $1,500 per year at the standard $1M per occurrence / $2M aggregate limits. Two published sets of premiums on policies actually sold bracket the middle of that band: Insureon reports an average of $45 a month across its small-business book, and Progressive Commercial reports a $55 monthly median for new policies. Industry, revenue, employee count, and state move your number more than carrier brand.

Typical monthly
$30-$100/mo
Insureon average
$45/mo
Progressive median
$55/mo
Typical annual
$500-$1,500/yr

Monthly figures checked on the publishers' own pages on 7 September 2026: Insureon ($45 average; 22% pay under $30 a month, 41% pay $30 to $60, annual policies $265 to $3,030) and Progressive Commercial ($79 average, $55 median, new customers, 2025). Both report premiums on policies they actually sold, not quoted estimates. Industry ranges below are this site's own 2026 rating set.

General liability insurance cost calculator

No email. No quote form.
Estimated annual GL premium range
$741 - $1,159/ year
$62 - $97 / month
Range reflects published industry pricing for similar businesses. Actual quotes vary by carrier appetite, classification code, and individual underwriting. We do not collect your data and we do not pass it to insurers.
How each factor moved your estimatev
Industry baseline
Medium risk
$950 /yr
Revenue band
$100K to $250K
1.00x
Employee count
Just me (solo)
1.00x
Coverage limit
$1M / $2M (standard)
1.00x
Deductible
$500 deductible
1.00x
Claims history
No prior claims
1.00x
State factor
National average
1.00x
Cost by industry

Typical GL ranges across 8 small-business sectors

Each row links to a deeper page covering sub-trades, common claims, and add-ons specific to that industry. Ranges reflect $1M / $2M limits at standard revenue bands.

IndustryAnnual rangeMonthly rangeRisk band
Consultants$400 to $900$33 to $75LowDetail >
Retail (brick & mortar)$600 to $1,400$50 to $117MediumDetail >
Cleaning / janitorial$500 to $2,000$42 to $167MediumDetail >
Landscaping$400 to $2,500$33 to $208MediumDetail >
Handyman$600 to $1,500$50 to $125MediumDetail >
Restaurants$900 to $2,200$75 to $183HighDetail >
Trucking (premises)$800 to $2,500$67 to $208HighDetail >
Contractors (general)$1,200 to $4,500$100 to $375HighDetail >
Six factors that move your premium

Where the variance comes from

No carrier prices on a single number. Premiums are built up from a base class rate, modified by the factors below. The estimator above applies all six.

Up to 8x baseline difference

Industry / classification

Single biggest driver. A consultant pays roughly one-fifth of what a roofer pays for the same limits. Class codes determine the baseline; everything else adjusts from there.

+60 to +90% from $100K to $1M

Annual revenue

Carriers rate against revenue because revenue proxies for exposure. Doubling revenue typically lifts premium 25 to 40 percent, not in a straight line.

+18 to +120% by team size

Number of employees

More employees, more public-facing activity, more claim opportunity. Solo operations attract a discount; crews of 10-plus attract a surcharge.

+25 to +55% per claim band

Claims history

One paid claim in the last three years usually adds 20 to 30 percent. Two or more typically push you to a non-standard market with a 50-percent-plus surcharge.

+30 to +40% for $2M / $4M

Coverage limits

$1M / $2M is the small-business standard. Stepping up to $2M / $4M typically adds 30 to 40 percent. Umbrella layers sit on top of GL and price separately.

Up to +/- 25% vs national

State and ZIP

Litigation climate, jury verdicts, and population density vary by state. California, New York, and Florida cluster at the top end. Iowa, Idaho, and West Virginia at the bottom.

Published reference points

What the data sources say

Premium figures vary across published sources because each samples a different mix of customers and class codes. Treat them as overlapping ranges, not single facts.

Small-business GL average (Insureon)
~$45/mo

Insureon's average monthly premium for its small-business customers at $1M / $2M limits. Sample weights toward lower-risk and home-based operations.

New-policy average (Progressive)
~$79/mo

Progressive Commercial's average monthly premium for newly-issued small-business GL policies (median $55). Skews higher because new customers include construction and mid-size accounts that carry heavier limits.

Industry mid-point
~$50-$70/mo

A reasonable mid-point for the average small business with $500K revenue, 1 to 5 employees, $1M / $2M limits, and no claims. Wide industry variance applies.

Sources: published small-business insurance marketplace and carrier cost data, including Insureon (average monthly premium, 2026), Progressive Commercial (new-policy average, 2025), and The Hartford. Industry-level context from the Insurance Information Institute (III). Figures are ranges; carriers rate individually and quotes vary widely.

Where to read next

The seven decisions that decide your premium and your protection

Once you have a baseline number, the work moves to scope. Do you need GL or a BOP? Will your lease or a client contract dictate higher limits? Do you actually need professional liability instead, or both? Read the dedicated pages.

What GL covers
3 core coverages and 8 exclusions
Do I need it?
20+ business types rated
Certificate of insurance
Why landlords and clients require one
GL vs E&O
Cost comparison by business type
GL vs BOP
Which saves you more?
Cost by state
50-state index vs national
8 ways to save
Dollar savings, not just percents
Contractor deep-dive
By sub-trade
FAQ

Nine questions buyers ask before they shop

How much is general liability insurance per month?+
$30 to $100 per month for a typical US small business at $1M per occurrence and $2M aggregate limits. Insureon publishes a $45 monthly average across its small-business book, with 22 percent paying under $30 a month and 41 percent paying $30 to $60. Progressive Commercial publishes a $79 monthly average and a $55 median for new policies. Both figures come from policies actually sold rather than quoted estimates, and both were checked on the publishers' own pages on 7 September 2026. A low-risk consultant sits near the bottom of the band at $33 to $75 a month; a general contractor sits well above it at $100 to $375.
What is the average cost of general liability insurance for a small business?+
Published marketplace data puts the typical small-business GL premium between $400 and $1,500 per year, with most policies clustering between $500 and $900. Insureon reports an average of roughly $45 per month for its small-business customers; Progressive Commercial reports a higher new-policy average near $79 per month (median $55), and the broader band runs $30 to $100 per month. Use the estimator above for an industry-specific range; treat any single national figure as an average across very different businesses.
What does general liability insurance cover?+
GL covers three things: third-party bodily injury (a customer trips in your shop), third-party property damage (you damage a client's flooring while installing equipment), and personal and advertising injury (libel, slander, copyright in your marketing). It does not cover employee injuries, professional mistakes, your own property, or vehicles. See our coverage guide for scenarios and exclusions.
Is general liability insurance required by law?+
GL is not federally required for most businesses. It is, however, frequently mandatory in practice. Most commercial leases require it. Most B2B and government contracts require it. State contractor licensing boards in Florida, Oregon, and Washington require proof of GL to issue or renew a contractor license, and California requires it for contractors licensed as LLCs. Several states (Arizona, North Carolina) require only a surety bond for the license itself, though projects, permits, and contracts there still routinely demand GL.
Is general liability insurance tax deductible?+
Yes. The IRS treats GL premiums as an ordinary and necessary business expense, deductible on Schedule C for sole proprietors, on the appropriate entity return for partnerships, S-corps, and C-corps, and against rental income for landlords. Always confirm specifics with your tax advisor.
What is the difference between per-occurrence and aggregate limits?+
The per-occurrence limit is the most the policy pays for any single claim. The aggregate limit caps total payouts in the policy year. The standard small-business policy is written at $1 million per occurrence and $2 million aggregate. If a single claim hits the per-occurrence cap, the aggregate is reduced by that amount for the rest of the year.
Is a BOP cheaper than buying GL alone?+
A Business Owners Policy (BOP) bundles GL with commercial property and business interruption coverage. Standalone GL typically runs $40 to $80 per month for small businesses; BOP typically runs $55 to $150 per month. If you need property coverage anyway, BOP usually saves 10 to 25 percent versus buying both separately.
How can I lower my general liability premium?+
The most reliable savings come from bundling into a BOP if eligible (10 to 25 percent), keeping a clean three-year claims record, raising your deductible from $0 to $1,000 (5 to 15 percent), confirming your class code is correct (mis-classification can cost 10 to 30 percent), and shopping the renewal annually with at least three carriers.
Do I need general liability or professional liability?+
Most service businesses need both. GL covers physical incidents (injury, property damage). Professional liability, also called errors & omissions (E&O), covers financial harm from your professional advice or services. A consultant whose advice causes a client to lose money would file under E&O, not GL. See our comparison page for cost data by business type.
Need professional liability too?

If your work involves professional advice, services, or design, you may need errors & omissions (professional liability) coverage in addition to GL. We publish a separate cost guide for that at our sister site, professionalliabilityinsurancecost.com.