General liability insurance cost

In 2020, small business owners countrywide who purchased a new policy through the Progressive Advantage® Business Program paid an average of $53 per month for general liability insurance.

While this gives an idea of how much business liability insurance costs, it’s not necessarily what you’ll pay. Your rate depends on the details of your business.

Rates usually vary among professions because each profession is exposed to different risks. For example, a landscaper might pay $650 annually for coverage, while a consultant would probably pay less because they’re less likely to face a general liability claim. Learn how various qualities of your business might affect your exposure and premium.

General liability insurance cost factors

Factors that influence the cost of general liability insurance include:

  • Your exposure - A small business that manufactures, delivers and installs equipment is exposed to more risk than a business that only delivers equipment.
  • Your location - Rates vary based on your state and where you conduct business. Highly populated areas, and locations with increased claims will generally pay more.
  • Number of employees - A business with no employees is exposed to less risk than a business with employees.

Find the cheapest liability insurance for your business

There are many ways to save on your general liability insurance costs. Some of these include:

Adjusting your coverage limits and deductibles

Lowering your aggregate limits from $2 million to $1 million, for example, is one way to lower your premium. You may also increase your deductible amounts as well. It’s important to understand, that by doing this you’re lowering your overall coverage, and paying more out of pocket at the time of a covered loss. Make sure you’re comfortable with your selected amounts prior to buying a policy.

Implementing safety standards in the workplace

Always keep safety in mind. Strong safety practices can help minimize your risk while on the job and keep your employees and customers safe. For example, a painting contractor could maintain a clutter-free workspace to reduce the risk of someone tripping over supplies left on the floor. Reducing your exposure to possible claims could help keep your premiums low.


Discounts are an easy way to help you get the cheapest liability insurance for your business. The number and dollar amounts of discounts for which you’re eligible usually depends on your carrier, business class, and location. Carriers could offer a discount for paying in full, or having an existing policy with them. Be sure to ask for all the discounts you’re eligible for while you’re getting your quote.

Get your free online quote for general liability insurance today. You can also speak to a licensed agent who’ll help you with a custom quote to match your specific business needs.

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