Commercial General Liability Insurance Cost & Coverage 2025

Commercial general liability insurance coverage, or CGL coverage, protects businesses from financial losses due to third-party bodily injury, property damage, and personal advertising and reputational harm claims. A small business owner with a yearly revenue of around $200,000 can generally expect to pay $170 to $13,000 annually. The wide range reflects the inherent risks of the industry.

A great way to quickly find affordable general liability is through a broker like Simply Business, which offers CGL to small businesses. In 10 minutes or less, you can get free, no-obligation quotes from multiple providers, and after comparing the coverage and price, you can purchase a policy online without needing to speak with anyone.

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How Much Does Commercial General Liability Insurance Cost?

We obtained over 250 quotes for all 50 states to find an average commercial general liability insurance cost. All of these estimated quotes were for the same level of coverage: $1 million per occurrence and $2 million aggregate. The businesses were part of some of the more common industries for small businesses.

Obviously, your premium may end up being more or less, but the goal here is to give you an idea of how much general liability insurance costs.

Commercial General Liability Insurance Cost by Profession

To get a broad overview of commercial general liability insurance costs by profession, we’ve averaged quotes we received for the industries listed below. All of these estimated costs are for the same level of coverage: $1 million per occurrence and $2 million aggregate.

Factors That Impact CGL Insurance Costs

When determining a general liability premium, insurers consider many factors. These include the following:

• Location: A business’ geographic region factors into the cost of a premium because weather and local laws can impact the price of a claim. For example, a company in Florida can expect to pay a higher premium because of the risk of a hurricane.
• Hours of operation: If your business is a 24/7 gym or only open on weekdays, or if you own a bar open late into the night, the premium will reflect those hours of operation.
• Claims history: If your business has had a loss in the last three to five years, expect to pay a higher premium cost or even encounter companies that will not offer a quote.
• Revenue: Higher revenue usually means more business, translating into greater risk exposure for the provider.
• Employees: How many employees perform the work and are appropriately trained? The more employees your business has, the more interaction with customers there will be, and the greater the potential for claims.
• Industry: A cleaning company that services an airport or a school should expect to pay more than a private, residential cleaning service.
• Inherent risk: A carpenter who installs wood-burning fireplaces will likely have a higher premium than one who installs kitchen cabinets.
• Limits: Raising or lowering the limits will impact the premium. While this cost is usually negligible, it is worth considering whether you need a limit of $4 million or $300,000.

I understand how tempting it can be to omit details when getting a quote, and I’m hoping to lower the cost of commercial liability insurance. It is crucial to answer every question truthfully so the insurer can accurately quote you.

Being honest when applying for insurance can mean the difference between having appropriate coverage and denying a claim because you misrepresented your business when applying. I’ve been involved in those investigations, and let me tell you, it can end up costing a lot more if you are dishonest during your application. You can be honest about your company and claims history and still find affordable small-business insurance.

Commercial General Liability Insurance Coverage

As its name implies, general liability (CGL) is broad liability coverage designed to cover various business losses. CGL coverage will have an aggregate limit, the total amount the policy will pay out, and an occurrence limit, the maximum the policy will pay per loss.

Within the CGL policy’s specific coverages, some insurance limits will differ. These specific coverages are as follows:

• Property damage: The general liability policy covers incidents leading to property damage for third parties (customers, patrons, or bystanders). These incidents could occur on-premises or off-premises during business operations.
• Bodily injury: This coverage protects your business from a claim that a third party was injured from a negligent act or liability from your business operation. It can help with medical expenses and settlements. Keep in mind that property damage and bodily injury draw on the same aggregate limit of the CGL policy.
• Personal advertising injury: Committing a personal injury means ruining someone’s reputation through libel or slander. Claims could be made based on oral comments and statements made to customers or social media posts. The comments can be made off the cuff, such as from an employee disparaging a competitor to a customer, or be more direct, like an advertisement attacking other businesses.

Some insurers have a smaller limit for personal and advertising injury, whereas others will have personal and advertising injury claims draw on the overall limit. You should review your policy for the specifics.

• Medical payments: If someone is physically injured on the business premises, regardless of negligence, the injured party is entitled to assistance with medical bills. This coverage typically has a lower limit, sometimes as low as $5,000, and is available regardless of liability.

CGL policies contain a provision for making medical payments with a separate limit. Medical payments help defray the cost of an injury regardless of whether your business is liable for the incident.

• Product liability: Available as a standalone policy or included with a CGL by some providers, product liability insurance (sometimes called products-completed operations coverage) covers harm or damage from a product your business manufactures or sells. The limit for this insurance is usually separate from the overall aggregate limit for the policy.
• Damage to premises rented to you: Most CGL policies cover damage caused by your business to the premises you rent and occupy. The damage is usually broken down into two categories: damage by fire and all other damages. The limit for this coverage usually is $100,000.

What Commercial General Liability Insurance Doesn’t Cover

CGL does not cover every type of loss. Remember, it is liability coverage, which means it covers losses to other parties and not your business property. It excludes the following:

• Commercial property: This is first-party protection for your business’ personal property (general liability doesn’t cover you if your property is damaged, vandalized, or stolen). See our list of the best commercial property insurance providers if you need this coverage.
• Professional liability: Many businesses in the service industry, such as accounting and interior design firms, need professional liability insurance. This covers losses from a professional mistake, such as poor investment advice and failure to honor a contract. You may be interested in our roundup of the leading professional liability insurance companies if you’re looking to get this coverage.
• Workers’ compensation: If your employees become injured or ill because of their work, general liability will not help them or protect your business. For this, you need workers’ compensation insurance, which helps the employees with wage replacement, medical costs, and treatment.
• Employee practices liability: Employees are considered part of your business, so if an employee feels like they have been harassed or discriminated against by your company, general liability does not offer protection. You will need employment practices liability insurance (EPLI) for these situations.

Who Needs CGL Insurance?

Every small business owner should consider purchasing general liability insurance, a core small business policy. Also, if you rent a facility, participate in an event, or seek to be a licensed professional, CGL may be required.

Usually, there are no state-wide specifics for general liability insurance. However, many license boards require proof of general liability to be certified. And if you are a contractor who works on projects for the local, state, or federal government, you will need general liability insurance.

There are certain situations where a state may require general liability. For instance, Maryland recently passed a law mandating that security guard companies register with the state police and provide proof of general liability insurance.

These businesses, in particular, should purchase general liability:

• Auto body shops
• Beauty and hair salons
• Churches
• Contractors
• Daycares
• DJs & videographers
• Electricians
• Food trucks
• Food vendors
• Gyms owners
• Handypersons
• HVAC technicians
• Janitorial & cleaning services
• Landscapers
• Nannies
• Nonprofits
• Painters
• Personal trainers
• Restaurants
• Swim instructors
• Bakeries

A Case Study: General Liability Claim Costs

Because CGL insurance covers so many different types of losses, it can handle a surprising number of claims for your business—and claims are expensive.

According to a study of 30,000 small business restaurant owners, slip and fall claims are the third most frequent type of loss restaurant owners face. Slip and fall claims fall under general liability insurance. Per the law firm Brown & Crouppen, slip and fall claims average a payout between $10,000 and $50,000.

The Insurance Information Institute shared that between 2014 and 2020, the award mean for personal injury lawsuits against small businesses was $1.4 million.

If you do not carry CGL and are legally liable for an incident—whether it is property damage, bodily injury, personal injury, or reputational harm—you are 100% responsible for any of the costs involved. If the incident goes to trial, you can expect those costs to skyrocket because they include trial fees, judgment, and punitive damages.

For example, per the Insurance Information Institute, in 2020, the average jury award for liability claims was $2.4 million. For product liability, which falls under CGL and includes losses like food poisoning, the average jury award was $7 million.

How to Get Commercial General Liability Insurance

Given how much it can cost your company if you are not carrying general liability insurance, perhaps now is a good time to purchase some. Well, when purchasing general liability insurance, you have several options.

1. Get in touch with an insurance carrier. This company underwrites a policy and assumes the risk for your business. You can contact a provider directly for a quote and to get a policy; you may want to see our top-recommended general liability insurance companies as a starting point.
2. Reach out to a broker or agency. Many carriers will contract with a broker or agency to sell their insurance. The broker will work with you to help you find the best policy for your business needs—and at the best price. Also, working with a broker is one of the best ways to save money on business insurance. Check out our roundup of leading business insurance brokers if you want options.
3. Use an insurance referral service. Like a broker, a referral service will consider your business needs and pair you with the best broker available.

How to Get Proof of General Liability Insurance

To get a certificate of liability (COI), you must request one from your insurance provider. Some insurance companies can generate one instantly or through an app. Meanwhile, others will require you to either submit a request in writing or reach out directly to your agent to have them initiate the process.

If you work in an industry where you frequently need to produce proof of insurance, you’ll want to ensure the process is quick and straightforward. Next Insurance is a provider that allows you to create and share COIs online or via its app instantly. You can learn more about it through our review of Next Insurance.

Bundling General Liability Insurance

While general liability insurance can be purchased as a stand-alone policy, bundling it is another option. Typically, CGL is bundled into what is known as a business owner’s policy (BOP). A BOP is a special policy specifically for small businesses that offers three different commercial policies bundled into one policy: commercial property insurance, general liability, and business interruption coverage.

There are several advantages to bundling your general liability this way. The first is convenience: you’ll have one policy with one company for multiple areas of protection. Also, a BOP is typically more affordable than if you were to purchase all three policies on their own. And finally, it simplifies the shopping experience since you only need to look for one commercial policy.

Commercial General Liability Enhancements

A general liability policy is extremely versatile. A great thing about a CGL policy is that many providers offer an endorsement or rider. This is a way of adding coverage to a policy. Here are the most common endorsements for general liability:

• Hired and nonowned auto: this endorsement extends your general liability coverage to vehicles driven by your employees but not owned by your business. This is useful if you have a restaurant and employees deliver food to customers.
• Tools and equipment: If you are a contractor and have tools, this is a great way to get them covered without purchasing a separate policy. Even though general liability is a third-party coverage, you can insure first-party items like your tools through this endorsement.
• Errors & omissions: Also known as professional liability, depending on the industry of your business, some providers will automatically include E&O insurance within CGL or offer it as an endorsement.
• Liquor liability: A standard CGL policy does not cover losses that are directly related to alcohol; for that, you need a liquor liability policy. If you own a restaurant that serves alcohol, you may be able to purchase a liquor liability endorsement for your general liability insurance. This will expand the coverage so that liquor losses are covered.
• Sexual abuse & molestation: If you are a professional counselor, own a summer camp, are a daycare owner, or run a religious institution, then sexual abuse and molestation coverage is an unfortunate but necessary level of protection. Many providers offer this as an endorsement of general liability so that, once again, the liability will extend to cover charges of abuse.

These are just the most common types of endorsements. Depending on the industry and the provider, you may have dozens of options for ways to expand your general liability policy.

Frequently Asked Questions (FAQs)

Does a sole proprietor need general liability insurance?

Is general liability insurance legally required?

What does CGL cover?

Is general liability insurance the same as product liability?

How much does CGL insurance cost?

Do I need commercial general liability if my business is an LLC?

Do I need any other type of insurance apart from CGL coverage?

Bottom Line

General liability is insurance coverage that protects your business from claims for which you are legally liable. Third-party damage and bodily injury claims are some of the costliest claims your business can face, so ensure you have the right carrier protecting your business. Visit Simply Business today for free, no-obligation quotes from top providers for general liability insurance.

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