General Liability Insurance Cost

In 2023, the national median monthly cost of a general liability policy for new Progressive customers was $59. The average rate was $80 per month.

So what can you expect to spend? The median price reflects what most people pay for business liability insurance because it’s the middle point of all policy premiums. Unlike the average, it isn’t skewed by the highest and lowest rates.

These numbers give an idea of how much new general liability policies cost, but your actual premium depends on specific features of your small business.

How much does general liability insurance cost?

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General liability insurance cost factors

Your exposure to risk affects how much you’ll pay for general liability insurance. The following factors can influence your cost:


General liability insurance cost can vary among professions because each has unique risks. For example, a landscaper might pay more than a consultant for general liability coverage because their work is physical and can lead to injuries, property damage, medical expenses, and more.

Type of work

Businesses in related fields can have different general liability premiums depending on the nature of their work. A small business that manufactures, delivers, and installs equipment is exposed to more risk than one that only delivers equipment. As a result, the first business might have a higher insurance rate.


Rates vary based on your state and where you conduct business. General liability typically costs more in highly populated areas and locations with increased claims.

Number of employees

Businesses with employees might have a higher general liability insurance rate. More people working increases the chance of accidents and mistakes that could result in a claim.

Time in business

Newer businesses might pay more for insurance because they don’t have much experience. Over time, an established safety record could lower your premium.


The amount of coverage you select for your small business can affect the average cost of general liability insurance. For example, a $1 million/$2 million policy is typically more expensive than a $1 million/$1 million policy.

Claims history

Insurance companies take past accidents and lawsuits into account when determining your premium. A clean claims history is one way to maintain a low general liability rate.

Find the cheapest liability insurance for your business

Getting the cheapest general liability insurance doesn’t have to be difficult. The following ways can help you save on your premium:

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 can also increase your deductible amounts. It’s important to understand that these changes lower your overall coverage, which means you'll pay 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 work-related risks and keep your customers safe. For example, a painting contractor can 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 general liability premium low.


Discounts are an easy way to get the cheapest liability insurance for your business. The number and dollar amounts of discounts you’re eligible for 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 what discounts you’re eligible for when getting your quote.

Discover your general liability cost

The best way to find out how much you’ll pay for general liability insurance is to get a quote. We’ll work with your business to find the right balance between cost and coverage.

Start an online quote, or call us to get a customized rate.

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