What is General Liability Insurance?
General Liability (GL) insurance protects businesses from third-party claims for bodily injury, property damage, advertising injury, and legal defense costs. Many landlords and clients require GL insurance as a condition of contracts or leases.
What Affects General Liability Cost?
- Industry risk classification, trades, restaurants, and manufacturing typically pay more.
- Annual revenue and payroll, higher exposure increases premium.
- Claims history, prior claims raise rates or reduce available credits.
- Location, state-level litigation and medical cost trends influence pricing.
- Foot traffic and customer exposure, more public interaction increases risk.
- Safety controls, documented loss prevention measures.
Who Needs General Liability Insurance?
GL insurance is essential for many small businesses: contractors, retailers, restaurants, consultants, property services, healthcare clinics, and online sellers who ship products.
State-Level Cost Snapshot
Certain states carry higher commercial insurance costs due to litigation environment and medical expense trends. Florida, California, New York, Texas, and Illinois commonly show higher GL premiums.
Cost Optimization Tips
- Raise your deductible where financially feasible.
- Implement safety and training programs, insurers often offer credits.
- Bundle policies (GL + Business Property) with the same carrier for package discounts.
- Document loss control improvements to regain favorable underwriting after claims.
FAQ
Is General Liability insurance required by law?
No, not usually required by law, but many landlords, clients, and licensing bodies require it contractually.
How much does GL insurance cost for a small business?
Small business GL premiums commonly range from about $45–$180 per month depending on industry, revenue, and risk profile, this tool provides a tailored estimate.
What does GL not cover?
GL does not cover employees (workers' compensation) or professional errors (E&O). Specialized endorsements or separate policies are required for those risks.
Disclaimer: This tool provides illustrative estimates. Actual premiums depend on underwriting, exact operations, detailed payroll and revenue mix, and insurer appetite. Use as a budgeting guide and consult brokers for formal quotes.