Advertising disclosure: we may earn a commission from links on this page, at no cost to you.
Compare in one place: general liability vs professional liability vs BOP. Or price a single coverage — professional liability (E&O), a BOP, or your state. Or estimate your own premium with our cost calculator.
The average, up front
The average cost of general liability insurance in 2026 is about $45 a month — roughly $540 a year — for a small business carrying the standard $1 million per-occurrence / $2 million aggregate limits. Typical prices run $25 to $70 a month. Low-risk desk businesses sit at the bottom of that range; contractors and trades sit well above it. Hiscox advertises general liability from about $29 a month, with an online quote in about five minutes.
General liability is the policy almost every small business buys first: it covers third-party bodily injury, damage you do to someone else’s property, and advertising claims like libel or copyright infringement. It is also the coverage most often demanded by a landlord, a client contract, or a licensing board — which is usually why you are pricing it. Below are the 2026 averages by profession and limit, then the levers that decide where you land. If you would rather skip to your own number, a free Hiscox quote takes about five minutes — the tables here will tell you whether the price you get back is a good one.
Average general liability cost at a glance
Figures are illustrative averages drawn from carrier-advertised pricing and published industry medians for typical small businesses.
| How you measure it | Average | Typical range |
|---|---|---|
| Per month | $45 | $25–$70 |
| Per year | $540 | $300–$840 |
| Solo / home-based business | $30 | $22–$45 |
| Business with employees | $65 | $45–$140 |
| Advertised from (Hiscox) | ~$29/mo | — |
What a $1 million general liability policy costs
$1M/$2M is the small-business default, and it is the limit the $45 average describes. Buying more coverage costs far less than you would guess, because the expensive part of any policy is the first dollar of risk, not the last:
| Coverage limit | Typical monthly cost | vs $1M standard |
|---|---|---|
| $500,000 / $1M aggregate | $32 | About 30% less |
| $1M / $2M aggregate (standard) | $45 | — |
| $2M / $4M aggregate | $60 | About 30% more |
| $1M plus a $1M umbrella | $100–$120 | Adds ~$75/mo |
Before you buy up, read the contract that prompted the purchase: many name a $1M per-occurrence requirement that your standard policy already meets.
Average general liability cost by profession
Industry is the single biggest input, because insurers are pricing the risk of the work itself — how likely you are to injure someone or damage property in the course of a normal day.
| Business type | Typical monthly GL cost |
|---|---|
| Consultants, bookkeepers & desk-based services | $22–$40 |
| Personal trainers, massage & wellness | $25–$45 |
| Photographers & creatives | $25–$50 |
| IT & software developers | $25–$50 |
| Real estate agents | $30–$55 |
| Retail & e-commerce | $35–$75 |
| Cleaning services | $40–$85 |
| Landscapers & lawn care | $45–$100 |
| Restaurants & food service | $70–$140 |
| Contractors & trades | $80–$160 |
State rules and contract norms move these too. Two worked examples: landscaping insurance in Kansas shows a physical trade pricing GL against equipment and property risk, while insurance for web designers in Georgia shows a desk business where GL is the cheap half of the bill and E&O is the important half.
General liability vs the other averages
General liability is rarely the whole bill. Here is how it compares with the coverages most often bought alongside it:
| Policy | Average monthly cost | When you need it |
|---|---|---|
| General liability | $45 | Almost always — injury and property damage to others |
| Professional liability (E&O) | $59 | If clients pay you for advice or expertise |
| Business owner’s policy (BOP) | $83 | If you have gear, inventory, or premises to protect |
| Workers’ compensation | $45 | Required in most states with your first employee |
If you carry equipment or rent space, price the business owner’s policy before you buy standalone GL — bundling liability with property is usually cheaper than buying the two separately. Not sure which coverages apply to you at all? Start with general liability vs professional liability vs BOP.
Hiscox vs. a typical general liability insurer
Price is only half the comparison — how fast you can get covered and who stands behind the policy matter just as much. Here is how Hiscox, our recommended option for small service-based businesses, stacks up:
| What to compare | Hiscox Our pick | Typical small-business insurer |
|---|---|---|
| Advertised starting price | General liability from ~$29/mo | Market average is $45/mo |
| Getting a quote | Online in about 5 minutes, priced on the spot | Often an agent call-back or an office visit |
| Certificate of insurance | Downloadable right after purchase | Often a next-business-day request |
| Financial strength | A (Excellent) from AM Best | Varies by carrier |
| Availability | 49 states + Washington DC (not Alaska) | Varies by state |
What moves you off the average
- Industry. The spread above says it plainly: the same $1 million limit costs a bookkeeper a fraction of what it costs a roofer.
- Revenue. General liability is rated largely off revenue — more work in the field means more chances for a claim.
- Employees. Crews raise GL exposure, and your first hire usually triggers a separate workers’ comp requirement.
- Limits and deductible. Going above $1M/$2M raises the premium, though far less than proportionally; a higher deductible lowers it.
- State. Rates are filed state by state, and litigation-heavy states price higher.
- Claims history. A clean record keeps you in the cheaper tiers; recent claims can raise premiums for three to five years.
How to pay less than the average
- Bundle into a BOP if you own equipment or premises — almost always cheaper than liability plus property bought separately.
- Pay annually. Monthly installments usually carry a service charge; the annual payment does not.
- Match limits to your contracts. Buy the limit your client actually requires, not a rounder, larger number.
- Raise the deductible to absorb small claims yourself in exchange for a lower premium.
- Re-quote every year. Rates are refiled constantly, and renewal pricing is rarely your best available price.
Why Hiscox
Hiscox is built for small, service-based businesses, with an A (Excellent) rating from AM Best and online quotes in minutes. General liability starts at about $29 a month, and coverage is available in 49 states plus Washington DC (not Alaska).
Where these numbers come from
The averages on this page are drawn from carrier-advertised pricing — including the starting prices Hiscox publishes on its own site, last checked August 2026 — and widely reported small-business insurance medians, rounded for readability. Treat them as a planning benchmark: the only number that applies to your business is the one on a real quote.
Frequently asked questions
What is the average cost of general liability insurance?
About $45 a month, or roughly $540 a year, at standard $1 million per-occurrence limits. Typical prices run $25 to $70 a month. Hiscox advertises general liability from about $29 a month.
How much is $1 million general liability insurance?
The $1M/$2M limit is the small-business standard and is exactly what the $45 average describes. Low-risk consultants and creatives often pay $25–$35 a month for it; contractors commonly pay $80 or more.
How much does general liability cost per year?
About $540 on average, with most small businesses between $300 and $840. Paying the year up front usually beats twelve monthly installments, since monthly billing often carries a service charge.
Why is my quote higher than the average?
Industry first — physical trades pay several times what desk-based businesses pay. After that: revenue, payroll, limits above $1 million, your state, and any claims in the last three to five years.
Is general liability cheaper than a BOP?
Yes — $45 a month on average versus about $83 for a BOP, which bundles general liability with commercial property. If you have property to protect, the BOP is still usually cheaper than buying both policies separately.
Disclaimer: Informational only, not insurance advice or a substitute for a licensed agent. Coverage descriptions are summaries; policy terms govern. Availability and pricing vary by state and business; all averages and ranges shown are illustrative benchmarks, not quotes or offers. Hiscox is available in 49 states and DC, not Alaska.