How Much Does General
Liability Insurance Cost?

Want to know how much general liability insurance
costs? Get the facts and compare quotes.

The most common business coverage

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How much does general liabilitiy insurance cost?

Business Owner's Policy

There is no single price for general liability insurance. Like all insurance, general liability is priced based on risk factors, like your business operations, the amount of insurance purchased, and if you purchse in a package, business owener’s policy, or stand-alone.

What is the median cost for general liability insurance?

For all general liability policies issued through IronPoint or our member agents, the median cost of general liability insurance is $52 per month ( approximately $500 annually). We look a the premium using the median to eliminate the high’s and low’s, thefore, providing a better way to reflect how much small business may pay for general liability.

Most small business owners (57%) less than $1200 annually for their general liability protection, and 38% pay less than $900. These numbers say that general liability is a very affordable protection for your small business*.

 

General Liability Cost Spread

*The numbers used in our analysis represent policies written through IronPoint Insurance Services, LLC and our member agents. Therefore, it’s bias is toward the mix if small businesses written through our network. Admittedly, we have a good mix of small and mid-sized businesses, but don’t represent many very large businesses, so our findings will differ from state or national analysis.

Industry risks impact general liability policy costs

When buying general liability insurance, it’s important to understand that most influential driver of premium is the industry segment. Since premiums are derived based on the estimate of risk, it’s easy to see that the higher risk industries have hihger median costs.

For example, retail stores that open their doors to the public have a higher exposure to risk than financial services consultants working from a and office. The chart below demonstrates how the business segment your business works in may impact what you might pay for a general liability insurance.

General Liability Cost by Segment

*The numbers used in our analysis represent policies written through IronPoint Insurance Services, LLC and our member agents. Therefore, it’s bias is toward the mix if small businesses written through our network. Admittedly, we have a good mix of small and mid-sized businesses, but don’t represent many very large businesses, so our findings will differ from state or national analysis.

Constructing and contracting businesses, cleaning services, and landscaping businesses have higher risk exposure and therefore have higher general liability insurance costs. General liability policies can pay for damage you or your employees cause to other people and/or their property. So, if you interact with other people’s property or work in hazardous indutries, you can expect to pay more.

How coverage limits affect insurance costs

Maybe this is easier of we discuss it in terms of something that is more common to all of us, auto insurance. If buy car insurance that pays for a broad range of risks, you pay more for the insurance. The same rule applies to business insurance. If you want a bsuiness insurance policy with higher coverage limits, you should expect to pay more for that protection.

When buying general liability insurance, the most common general liability limit selectin is $1 million / $2 million policy. What does this actuall mean? 

$1 million occurrence limit. While the policy is active, the insurer will pay up to $1 million to cover any single claim.

$2 million aggregate limit. During the lifetime of a policy (usually one year), the insurer will pay up to $2 million to cover claims.

The majority of our customers (97%) choose a policy with $1 million / $2 million limits. While 3% of our insureds do selct the higher $2 million / $4 million limit, this is less popular for small business owners.

Tips for finding business owner’s policy cost savings

Recommendation #1 is to bundle your insurance policies. As is the case with your personal insurance, businesses can sometimes offer savings when they purchase multiple policies from the same insurance company. The best way to do this, if your a small business in a low risk industry, is to buy a business owner’s policy. A BOP bundles commercial general liability and property insurance in a convenient package that offers savings. 

Pay your entire premium upfront. Your general liability policy premium can typically be paid in monthly or annual installments. It might be tempting to go with a smaller monthly payment, but consider paying the full premium. Businesses can usually save money this way because many insurers offer discounts for annual premiums or you eliminate the need for monthly installment fees.

Proactively manage your risks. If your small business has a clean claims history, expect to pay lower insurance rates. An effective way to do this is to create a comprehensive risk management plan. For example, you might:

  • Have a training program for new employees
  • Install good security systems
  • Manage your social media policies
  • Have safety and process procedure checklists
  • Eliminate or minimize hazards on your facilities or jobsites.

Let’s Start a General Liability Insurance Quote

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Location Address

Physical Address:
17901 Von Karman Ave, Suite 600
Irvine, CA 92614

Mailing Address:
PO Box 62436
Irvine, CA 92602

(714) 955-4132 - Local
(877) 344-7646 - Sales & Service
(760) 238-7116 - Agency Affiliation
(888) 316-4832 - Fax

Copyright IronPoint Insurance Services, LLC | California License No. 0G87821 | PO Box 62436, Irvine, CA 92602 | 877.334.7646

IronPoint Insurance Services is an independent insurance agency licensed (#0G87821) with the California Department of Insurance. We are authorized agents for many A+ rated Arizona, California and Utah insurance companies. We provide consumers with online, phone, and in-person insurance services through our insurance company relationships. IronPoint Insurance Services, LLC offers multiple insurance quotes to provide consumers several options for their insurance products. We offer auto insurance through Mercury Insurance Group, Travelers Insurance Companies, The Hartford, MetLife Auto & Home, and Progressive Drive Insurance. We are authorized insurance agents for these companies and do not charge any fees for our services. If an IronPoint insurance agent trys to charge you broker or agency service fees for representing these companies, please contact us immediately.

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