How Much Does General Liability Insurance Cost in 2025?

What Is General Liability Insurance?

General liability insurance (GL) protects your business from third-party claims of bodily injury, property damage, and personal injury. It's one of the most essential policies any business can carry — and often the first one required by clients, landlords, and licensing boards.

Average Cost of General Liability Insurance

Most small businesses pay between $400 and $1,500 per year for a standard general liability policy. However, the actual cost depends on several key factors:

• Industry and risk level — Contractors pay significantly more than consultants
• Annual revenue — Higher revenue means higher premiums
• Number of employees — More employees increases exposure
• Location — States like California and New York have higher rates
• Claims history — Prior claims raise your rates

Cost by Industry

Here's a general breakdown of average annual GL premiums by industry:

• Consultants / Freelancers: $400–$800/year
• Retail businesses: $500–$1,200/year
• Restaurants: $800–$2,500/year
• Contractors (painting, landscaping): $1,000–$5,000/year
• General contractors / roofers: $3,000–$15,000+/year
• Healthcare providers: $1,500–$6,000/year

What Does General Liability Cover?

A standard GL policy covers:

• Bodily injury to a third party on your premises or caused by your work
• Property damage you accidentally cause to someone else's property
• Personal and advertising injury (libel, slander, copyright infringement)
• Medical payments for minor injuries without a lawsuit
• Legal defense costs even if the lawsuit is groundless

What's NOT Covered?

General liability does not cover:

• Your own business property
• Employee injuries (covered by workers' compensation)
• Professional errors (covered by E&O / professional liability)
• Auto accidents involving business vehicles
• Intentional acts

How to Get the Best Rate

Working with an independent insurance agency like InsuranceBind gives you access to quotes from 50+ A-rated carriers — so you're never overpaying for the same coverage. We shop the market for you and can typically return quotes within one business hour.

Ready to see what you'd pay? Get a free general liability quote today.