General Liability Insurance Cost by State (2026)

50-state cost index

Index of 100 represents the national average for a small business with one to four employees, $250K to $500K revenue, $1M / $2M GL limits, and no claims in the prior three years. Monthly figures are typical ranges, not single quotes. Use these as benchmarks, not as commitments from any specific carrier.

Why states differ

Five structural factors drive the spread. Carriers blend them into a single state-territory factor in the rating manual. Each factor is real and observable in the public claim data:

• Litigation climate and frequency of plaintiff-friendly verdicts.
• Jury verdict averages for personal injury and property damage.
• State insurance regulation and assigned-risk pool design.
• Population density and per-capita commercial activity.
• Cost of medical care and labour, both of which drive claim severity.

Highest-cost states

California

California sits roughly 50 to 55 percent above the national average. Three drivers compound: a heavily plaintiff-favourable litigation environment, the highest jury-verdict averages in the country for personal injury, and the highest medical and labour costs. Most contractors statewide require $1M / $2M plus a $1M umbrella to satisfy CSLB requirements and most commercial contracts.

New York

New York runs about 40 percent above national. The Labor Law "scaffold law" (Section 240) creates absolute liability for elevation-related construction injuries, which drives contractor GL costs sharply higher. Outside construction, urban density, foot-traffic claim frequency, and the New York City litigation climate all push retail and food-service premiums upward as well.

New Jersey, Florida, Connecticut, Massachusetts

Each of these runs 28 to 32 percent above national. New Jersey shares much of New York's litigation profile. Florida's high tourism volume and dense population create above-average claim frequency. Connecticut and Massachusetts share New York's broad rating territory and elevated jury-verdict averages.

Lowest-cost states

West Virginia, Idaho, Iowa

These three sit 22 to 26 percent below national average. Lower urban density, lower jury-verdict averages, and a less aggressive plaintiffs' bar all combine to compress claim severity and frequency. None of these states is "cheap" in absolute terms; small businesses still pay $42 to $58 per month for $1M / $2M GL. They are simply lower than the national mean.

Arkansas, Mississippi, Montana, North and South Dakota

All sit 18 to 22 percent below national. Each shares the structural pattern of low urban density and moderate-to-low litigation activity. State licensing requirements are also lighter, which reduces the share of GL purchases driven by mandatory contractor licensing.

State cost FAQ