How much is commercial general liability insurance?
Commercial general liability insurance premiums can vary widely by the carrier and your best bet is to contact a local independent insurance agent who represents multiple companies to see which one is comfortable with your exact type of business model.
Free Insurance Comparison
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
UPDATED: Jul 19, 2021
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We are not affiliated with any one insurance provider and cannot guarantee quotes from any single provider. Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about life insurance. Our goal is to be an objective, third-party resource for everything life insurance related. We update our site regularly, and all content is reviewed by life insurance experts.
If you’re reading this, you may be new to the small business world.
Or perhaps you’ve been in business a few years with no insurance and have been asked for a certificate of insurance in order to bid on a job.
Regardless of whether you’re a sole proprietor or a small commercial start-up, you’ll probably want to have a commercial general liability insurance policy in place.
First things first, you’ll want to “get in” with a standard lines carrier to avoid paying higher insurance premiums and having to pay in full or opt for premium financing as a result of insuring with a surplus lines carrier who does not offer direct billing.
Either way, there is no way to tell you within $10 what your CGL premium will be, but we can certainly give you some guidelines of what you can expect.
Please note the premiums can vary widely by carrier and your best bet is to contact a local independent insurance agent who represents multiple companies to see which one is comfortable with your exact type of business model (and offers the cheapest insurance).
That said, let’s look at your overall “type of business,” length of time in business and…you guessed it, your personal credit score or business credit rating.
These are the factors that determine which type of insurer will accept you as a risk and how much they may intend to charge you for commercial general liability insurance.
And don’t forget about commercial general liability limits.
If you are a “paper” based business…think insurance agent, real estate agent or any other middle man type business that doesn’t actually produce a product, but rather offers a service, you’ll get off the hook relatively easy here.
It’s not often necessary to have been in business for any amount of time (start-ups are OK typically) if this is your business model.
There is very little risk in the way of commercial general liability in these types of companies. Most of the danger is in errors & omissions coverage (which is a different policy altogether)
You can expect a premium (often the minimum premium the insurer will offer) of about $500 for 12 months. Remember, credit plays a role here. The worse your credit history, the higher the premium you can expect to pay (or worse, you could be deemed an unacceptable risk).
Contractors are a tricky insurance proposition for insurers. The old “cancel the policy after the bid is accepted” trick has led to very tight insurance guidelines and higher overall costs for everyone. It does nothing but waste time and cost insurers and agents money…and is known industry-wide. We’re not the old lady next door with a leaky faucet…
Here’s the deal for contractors. If you don’t have at least 3 years in business, with continuous insurance…get ready to cough up over $1,200 per year and finance the premium if not paid in full.
If your contracting includes roofing, try $1,800 to over $2,000 per year. Roofing is normally excluded from “contractor” policies. You really want to try to pick a specific “class” for your trade rather than get stuck with the “handyman” title, as that will cost you a little more as well.
If you are in business to produce an actual product, you can expect to pay more for your commercial liability insurance.
This is more risky for the insurers, so you’re going to be paying more. Point blank. Expect to pay slightly over $1,000 per year with a small outfit.
FYI: If you’re starting a large scale manufacturing company, this post is not for you. It would probably be in your best interest to sit down with an insurance agent to discuss your coverage.
Again, these are basic guidelines – actual insurance rates may vary widely by state, type of business and credit history.