In 2021, the average monthly cost of a general liability policy was $48 for new progressive customers. the average rate was $65 per month.
the lower median price suggests that some expensive outliers made the average cost appear higher than what most policyholders spent. While these rates give you an idea of how much commercial liability insurance costs, they are not necessarily what you will pay. your premium depends on the details of your business.
Cost generally varies between professions because industries are exposed to different risks. For example, a landscaper may pay more than a consultant for general liability coverage due to the physical nature of her work. learn how various qualities of your business can affect your exposure and premium.
general liability insurance cost factors
Factors that influence the cost of general liability insurance include:
- Your Exposure: A small business that manufactures, delivers, and installs equipment is exposed to more risk than a business that only delivers equipment.
- your location: Fees vary depending on your state and where you do business. highly populated areas and locations with higher claims will generally pay more.
- number of employees: a company without employees is exposed to less risk than a company with employees.
- what is general liability?
- general liability insurance coverage
- general liability vs. professional liability
- Benefits of Commercial General Liability Insurance
find the cheapest civil liability insurance for your company
There are many ways to save on your general liability insurance costs. some of these include:
adjusting your coverage limits and deductibles
Lowering your aggregate limits from $2 million to $1 million, for example, is one way to lower your premium. it can also increase your deductible amounts. It’s important to understand that by doing this you are reducing your overall coverage and paying more out of pocket at the time of a covered loss. make sure you are comfortable with the amounts selected before purchasing a policy.
implementation of safety standards in the workplace
Always keep safety in mind. Strong safety practices can help minimize your risk on the job and keep your employees and customers safe. For example, a painting contractor might maintain a tidy workspace to reduce the risk of someone tripping over supplies left on the floor. Reducing your exposure to potential claims could help keep your premiums low.
Discounts are an easy way to help you get the most affordable liability insurance for your business. The number and dollar amounts of discounts you’re eligible for generally depend on your carrier, business class, and location. Carriers may offer a discount for paying in full or for having an existing policy with them. Be sure to request all discounts you’re eligible for while you’re getting your quote.
Get your free online liability insurance quote today. You can also speak with a licensed agent who will help you with a personalized quote tailored to your specific business needs.