Business Insurance

General Liability Insurance Cost

General liability insurance, also known as commercial or business liability insurance, is a base level of coverage that is commonly held by small and large businesses alike. This basic level of insurance is made to cover the cost where you may need insurance the most, thus making it the standard across all industries.

Insurance companies cover several forms of injury and property damage under general liability insurance which can help small business owners cover claims they may not have expected.

To learn more about the cost involved to protect your business, keep reading our article below.

How much coverage is enough?

This is the first question business owners who are new to the insurance market ask. Because more coverage means higher annual fees, companies want to get just the right amount of coverage so their premiums stay low but don’t have gaps in the event a claim is filed.

Most organizations opt for $500,000 to $1,000,000 in general liability insurance coverage. This level of coverage tends to be plenty for most companies, but higher risk industries usually want to obtain more coverage.

What does general liability?

Before getting into a conversation about what different levels of insurance might look like for your specific business (and what will influence the cost), let’s first take a look into what general liability insurance actually is.

General liability insurance covers a wide range of problems that could come up while operating your business, such as:

  • Bodily injury of employees or non-employees while business practices are being performed
  • Property damage of the business location or customer property as a result of rendering professional services
  • Personal injury resulting in damaged reputation such as slander, libel, or other defamatory outcomes
  • Legal defense in the event of a lawsuit to cover legal and court fees

When you need extra coverage?

Depending on your business, some types of coverage are more important than others. A construction business, for example, benefits from coverage geared toward bodily injury in the event of an employee or visitor injures themselves at the worksite. A law firm might want extra coverage relating to potential claims of legal malpractice.

In cases like these where more specific coverage is needed, business owners can add professional liability insurance or workers compensation to bolster their general liability insurance– this ensures that you are covered for an even wider variety of claims. (You can learn more about these and more in our article on types of business insurance.)

How much does general liability insurance cost?

The cost of general liability insurance varies greatly from hundreds per year to thousands. Many factors play into the pricing of premiums, including the size of the company and the different levels of coverage your business needs.

Here, we will discuss what is covered by general liability insurance, the factors that affect the cost of coverage, as well as the amount of coverage that is available.