General Liability Insurance Cost by State (2026)
GL insurance costs vary by up to 120% between the cheapest and most expensive states. California costs 54% more than the national average. Midwest states cost 15-22% less.
All 50 States + DC Ranked by GL Cost
Average monthly premium for a small business with 1-4 employees, $1M/$2M coverage, no prior claims. Index: 100 = national average ($62/mo).
| State | Avg Monthly |
|---|---|
| California | $96/mo |
| New York | $92/mo |
| Florida | $86/mo |
| New Jersey | $84/mo |
| District of Columbia | $81/mo |
| Illinois | $79/mo |
| Hawaii | $78/mo |
| Massachusetts | $76/mo |
| Connecticut | $74/mo |
| Louisiana | $73/mo |
| Washington | $71/mo |
| Alaska | $71/mo |
| Texas | $70/mo |
| Rhode Island | $70/mo |
| Maryland | $68/mo |
| Pennsylvania | $67/mo |
| Oregon | $67/mo |
| Georgia | $65/mo |
| Colorado | $65/mo |
| Delaware | $65/mo |
| Nevada | $65/mo |
| Arizona | $63/mo |
| Michigan | $61/mo |
| Virginia | $60/mo |
| North Carolina | $59/mo |
| Missouri | $58/mo |
| Ohio | $57/mo |
| South Carolina | $57/mo |
| New Mexico | $57/mo |
| Oklahoma | $56/mo |
| Tennessee | $56/mo |
| Utah | $56/mo |
| New Hampshire | $56/mo |
| Kentucky | $55/mo |
| Maine | $55/mo |
| Mississippi | $55/mo |
| Vermont | $55/mo |
| Minnesota | $55/mo |
| Indiana | $54/mo |
| Alabama | $53/mo |
| Kansas | $53/mo |
| Wisconsin | $53/mo |
| Nebraska | $52/mo |
| Montana | $51/mo |
| Iowa | $51/mo |
| Wyoming | $51/mo |
| Idaho | $50/mo |
| Arkansas | $50/mo |
| South Dakota | $50/mo |
| North Dakota | $48/mo |
| West Virginia | $48/mo |
Why States Differ
Five factors drive state-level cost differences:
- 1.Litigation climate. States with plaintiff-friendly courts and higher jury verdict averages cost more. California, New York, and Florida lead in both litigation frequency and award size.
- 2.Insurance regulation. Some states restrict how much insurers can charge, while others allow market-rate pricing. Rate regulation can help or hurt depending on implementation.
- 3.Population density. Urban areas have higher claim frequency due to more foot traffic, more vehicles, and more interactions. States with large urban populations cost more on average.
- 4.Cost of living. Medical costs, construction costs, and legal fees are all higher in expensive states, which drives up claim payouts and premiums.
- 5.Natural disaster exposure. States prone to hurricanes, earthquakes, or severe weather see higher overall insurance costs, which partially spills over into GL pricing.
Updated 11 April 2026