$300,000 Liability Insurance Cost for Small Business (2026)
A $300,000 aggregate general liability policy typically costs $15 to $45 per month for a small business. The honest answer on whether it is enough: it is enough for the buyer but rarely enough for the buyer's contract partners. Most commercial leases, GC subcontracts, marketplace seller terms, and event-venue COI requirements set $1M per occurrence as the floor.
Typical cost by operator profile
$300,000 aggregate is the lowest GL tier most carriers will write. Pricing varies less than at higher tiers because the buyer pool is narrow: solo consultants, home-based online retailers, and micro service providers without commercial clients. Ranges below assume revenue under $100,000, no employees, no commercial lease, and a clean claims record.
| Operator profile | Monthly range | Annual range |
|---|---|---|
| Solo consultant (no premises) | $15 to $30 | $180 to $360 |
| Home-based retailer (online only) | $20 to $35 | $240 to $420 |
| Micro service provider (handyman, tutor) | $25 to $40 | $300 to $480 |
| Solo cleaner (residential only) | $25 to $45 | $300 to $540 |
| Booth-rental stylist | $20 to $35 | $240 to $420 |
| Etsy or eBay micro-seller | $20 to $35 | $240 to $420 |
What $300,000 actually means
The number on the policy declarations page refers to two limits. Per-occurrence is the maximum the carrier will pay for a single claim. Aggregate is the maximum across all claims in the policy year. A $300k aggregate policy can be written as $300k / $300k (one limit handles both), or as $300k / $600k (separate aggregate sits above the per-occurrence). The aggregate matters because it determines how much coverage remains after a single claim is paid.
Per-occurrence and aggregate interact
If a single claim hits the $300,000 per-occurrence limit, the aggregate is reduced by that amount. With $300k / $300k structure, a single per-occurrence-limit claim fully exhausts the aggregate, leaving no coverage for the rest of the policy year. With $300k / $600k structure, the same claim leaves $300k of aggregate available. Most micro-operators do not realise the aggregate structure matters as much as the per-occurrence figure they see in marketing material.
Defence costs typically sit outside the limit
On standard ISO-form GL, defence costs are paid by the carrier in addition to the policy limits. A $300k policy can produce $50k to $150k of defence costs and still pay the full $300k of indemnity. Some carriers (mostly non-standard markets writing very low-priced policies) issue policies where defence costs erode the limit; these policies cost less but provide significantly less protection. Read the declarations carefully.
How $300k compares to higher tiers
The marginal cost of stepping up to $1M / $2M coverage is small (typically $15 to $25 per month) but the marginal protection is meaningful and the marginal acceptance by contract partners is enormous. The table below summarises typical pricing across the four most common small-business GL tiers.
| Coverage tier | Typical monthly cost | Practical use |
|---|---|---|
| $300k occurrence / $300k aggregate | $25 / mo | Home-based, online only, no commercial clients |
| $300k / $600k aggregate | $30 / mo | Very low-risk side gig |
| $500k / $500k aggregate | $32 / mo | Sometimes accepted on commercial leases |
| $1M / $2M aggregate (de facto standard) | $45 / mo | Required on most leases, GC contracts, marketplace seller terms |
Who refuses $300k coverage
Most modern commercial transactions require a higher GL limit. The table below summarises typical contract and licensing demands that exclude $300k aggregate policies.
| Contract or requirement | Typical demand | Frequency |
|---|---|---|
| Commercial office or retail lease | $1M per occurrence floor | Almost always |
| GC subcontractor agreement | $1M / $2M aggregate floor | Always |
| Wedding or event venue COI | $1M per occurrence floor | Almost always |
| Amazon, Walmart Marketplace seller terms | $1M per occurrence floor | Always (above revenue threshold) |
| State contractor license (CA, FL, NC) | Some accept $300k statutory minimum | Sometimes |
| Federal or state government contract | $1M to $5M per occurrence | Always |
When $300k is actually enough
Three operator profiles can reasonably stay at $300k aggregate. Solo consultants and freelancers with no employees, no commercial clients, no commercial lease, and no marketplace seller obligations. Home-based online retailers selling only on platforms that do not require higher limits (some lower-volume tiers of Etsy, eBay, Facebook Marketplace). Pure side-gig service providers where the work is informal and contract-free. Once any of those conditions changes, the $1M floor becomes practical.
How to know when to step up
Five trigger events that almost always push an operator from $300k to $1M / $2M coverage. Each one is a contract or marketplace requirement; they do not need to all apply at once. Any one is typically enough.
- Signing a commercial lease. Most modern commercial leases require $1M per occurrence GL with the landlord named as additional insured.
- Taking on a commercial or B2B customer that requires a COI. The vast majority of B2B customers ask for $1M minimum.
- Crossing the marketplace seller revenue threshold. Amazon's threshold is $10,000 per month, and Amazon requires $1M per occurrence at the threshold.
- Taking on a subcontractor relationship with a general contractor. Almost every GC requires $1M / $2M plus an additional-insured endorsement.
- Bidding any government contract (federal, state, or municipal). Almost all government procurement standards require $1M minimum.