How Much Does General Liability Insurance Cost?
General liability (GL) insurance costs about $45 per month ($500 per year) at the median, according to Insureon — and NerdWallet cites the same $45/month ($500/year) median. But that headline number hides a wide spread: what you actually pay depends most on your industry, how many employees you have, and which state you operate in.
This is an independent guide from QuoteSweep, which maps the modern commercial insurance landscape. Every figure below is attributed to its source so you can see exactly which population each number describes — because the "average" GL premium looks very different depending on whose book you measure.
TL;DR: The most-cited GL benchmark is $45/month ($500/year) at the median, sourced from Insureon and echoed by NerdWallet — but it reflects Insureon's own, lower-risk-skewed customer base. MoneyGeek's 2026 modeled report, which averages across all 408 industries and 50 states, lands higher: about $65/month for a sole proprietor and $123/month ($1,474/year) for a business with 1–4 employees. By industry, MoneyGeek spans $27/month (tech/IT) to $337/month (construction). Both are legitimate — they just measure different populations. Cite the population, not just the number.
How much does it cost?
The single most defensible number is Insureon's median: $45/month, or about $500/year (Insureon), which NerdWallet independently cites as the same $45/month ($500/year) median. Insureon reports that 22% of its customers pay under $30/month and 41% pay $30–$60/month, with typical premiums running $22–$45/month. Across its full book, annual GL policies span roughly $265 to over $3,030 — call it $250–$3,000+/year.
One important caveat before you anchor on $45/month: that figure reflects Insureon's own customer base, which skews toward lower-risk small businesses. MoneyGeek's 2026 modeled report, by contrast, averages across all 408 industries and 50 states rather than an actual customer book — so its benchmark is higher: about $65/month for a sole proprietor and $123/month ($1,474/year) for a business with 1–4 employees. Neither is wrong; they measure different populations. If you're a solo consultant, the Insureon end is closer to reality; if you want a broad all-industry average, MoneyGeek's is more representative.
GL cost by industry (Coverdash medians, via NerdWallet)
Industry is where the real spread lives. NerdWallet, citing Coverdash industry medians, reports the following annual GL figures:
| Business type | Median annual GL premium (Coverdash, via NerdWallet) |
|---|---|
| Florists | ~$450/year |
| Consulting | ~$550/year |
| Salons | ~$650/year |
| Full-service restaurants | ~$1,800/year |
| Residential plumbing | ~$2,200/year |
| Pipe / duct / boiler installation | up to ~$12,500/year |
Low-risk businesses like consultants can come in under $50/month, per NerdWallet.
GL cost by industry (MoneyGeek 2026 modeled)
MoneyGeek's 2026 modeled report frames the same story in monthly terms: from $27/month for tech/IT at the low end to $337/month for construction at the high end, with the overall modeled range spanning $27 to $2,298/month depending on the full business profile.
What drives the cost
Six factors move a GL premium up or down. In rough order of impact:
Industry / risk level. This is the single biggest driver by category. Public-facing or hands-on trades — construction, contracting, restaurants — pay far more than desk-based work. MoneyGeek's 2026 report illustrates the spread: tech/IT around $27/month versus construction around $337/month.
Business size. Revenue, payroll, and employee count all factor in. MoneyGeek calls size "the strongest baseline pricing driver," modeling roughly $65/month for a sole proprietor, $123/month for 1–4 employees, and $323/month for 5–9 employees.
Location / state. Litigation climate and medical and repair costs vary by state. MoneyGeek's 2026 figures put West Virginia around $87/month (low) versus California around $190/month (high). NerdWallet, citing Coverdash, notes the extremes are wider still — New Hampshire roughly 400% above the national median and Utah roughly 60% below it.
Coverage limits. Most small businesses — about 85% at Insureon — choose $1 million per-occurrence / $2 million aggregate limits. Stepping up to $2M/$4M raises the premium.
Deductible chosen. Insureon reports common GL deductibles run $500–$1,000; a higher deductible lowers the premium.
Claims history. Prior claims raise your rate, per NerdWallet.
How to lower your premium
Insureon and NerdWallet both point to a consistent set of levers:
- Compare quotes from multiple carriers. Insureon calls this one of the best ways to find affordable GL — marketplaces let you compare several insurers from a single application.
- Bundle GL into a Business Owner's Policy (BOP). Packaging GL with commercial property usually costs less than buying them separately (Insureon).
- Raise your deductible. A higher deductible lowers the premium — just keep it to an amount you could actually pay on a claim (Insureon, NerdWallet).
- Right-size your coverage limits. Pick limits that match your actual exposure instead of over-buying (Insureon).
- Pay annually. Many insurers discount an annual payment versus monthly installments (Insureon).
- Remove riders you don't need. Strip unnecessary add-on coverage (Insureon).
- Invest in risk management. Safety training, property inspections, product testing, and advertising guidelines reduce claims and keep future rates down (Insureon).
Affordable options
If you want to shop GL directly, these are insurtechs QuoteSweep has profiled independently. Compare at least two — appetite and pricing vary by carrier and by business.
Next Insurance — now branded ERGO NEXT after Munich Re's ERGO Group acquired it in 2025 — is a digital-first small-business insurer that quotes and binds online in under 10 minutes. It writes a broad multi-line stack including general liability, and per its own site has insured 750,000+ customers across 1,300+ business types. Good fit if you want several coverages from one fast, well-backed provider.
biBERK is a direct-to-business insurer that's part of the Berkshire Hathaway Insurance Group, writing on carriers rated A++ (Superior) by AM Best. It sells GL online with no brokers and positions on savings of up to 20% by removing the middleman. The trust-and-stability pick for standard small-business risk.
Thimble sells on-demand coverage — by the job, month, or year — that you can modify, pause, or cancel instantly. It writes GL for contractors, creatives, cleaners, landscapers, and 1,000+ activities, and is a wholly owned subsidiary of Arch Insurance Group. Best when your coverage need is seasonal or job-based rather than a full annual policy.
Coverdash is a digital business-insurance platform for small businesses, startups, e-commerce merchants, and freelancers, offering quote-to-bind GL online in a few clicks with instant certificates of insurance. It places coverage through carrier partners and is the source behind the industry medians cited above. A clean self-serve option for simpler small-business risk.
Frequently Asked Questions
How much does general liability insurance cost per month?
Most small businesses pay about $45/month ($500/year) at the median, per Insureon, which NerdWallet also cites. Insureon's typical range is $22–$45/month, with 22% of its customers under $30/month and 41% between $30 and $60/month. By industry, MoneyGeek's 2026 modeled report spans $27/month (tech/IT) to $337/month (construction).
Why is my GL quote higher than the $45/month median?
Because the $45/month figure reflects Insureon's own customer base, which skews toward lower-risk small businesses. A broader modeled benchmark tells a different story: MoneyGeek's 2026 report, averaging across all industries and states, puts a 1–4 employee business at about $123/month ($1,474/year). If your industry is hands-on (construction, restaurants, plumbing) or you're in a high-cost state, expect to land above the median.
What's the cheapest way to get general liability coverage?
Per Insureon and NerdWallet: compare quotes from multiple carriers, bundle GL into a BOP alongside commercial property, raise your deductible to an amount you could actually pay, right-size your coverage limits, and pay annually rather than monthly. Investing in risk management (safety training, inspections) also keeps future rates down.
How much GL coverage do I need?
Most small businesses — about 85% at Insureon — choose $1 million per-occurrence / $2 million aggregate limits, which many contracts and landlords require. Stepping up to $2M/$4M raises the premium, so match your limits to your actual exposure rather than over-buying.
The bottom line
The most defensible single number for general liability insurance is $45/month ($500/year) at the median, sourced from Insureon and independently cited by NerdWallet — but treat it as a starting anchor, not a quote. It describes Insureon's lower-risk-skewed customer book; MoneyGeek's 2026 all-industry benchmark of about $123/month ($1,474/year) for a 1–4 employee business describes a broader population. Your own number will land somewhere on that spectrum based mostly on your industry (MoneyGeek: $27–$337/month), your employee count, and your state. The only way to know your real price is to quote it — compare at least two carriers, and see the full field of small-business insurtechs on the small-business hub.
