- Industry and Risk Level – High-risk businesses (e.g., construction) pay more than low-risk businesses (e.g., consulting firms).
- Business Size and Revenue – Larger businesses with higher revenue typically require higher coverage limits, increasing premiums.
- Location – Insurance costs vary by state and city based on legal and economic factors.
- Claims History – A history of liability claims can raise insurance costs.
- Coverage Limits and Deductibles – Higher coverage limits and lower deductibles result in higher premiums.
On average, general liability insurance for small LLCs costs between $300 and $1,500 per year.
How to Choose the Right General Liability Insurance Policy
When selecting a general liability insurance policy, consider the following steps:
- Assess Business Risks – Identify potential liability risks based on your industry and operations.
- Compare Insurance Providers – Obtain multiple quotes from reputable insurance companies.
- Understand Policy Exclusions – Review what is and isn’t covered under each policy.
- Check for Additional Coverage Options – Consider add-ons like professional liability insurance or cyber liability insurance if needed.
- Review Customer Feedback – Read reviews and ratings to evaluate an insurer’s customer service and claims process.
Bundling General Liability Insurance with Other Coverages
Many LLCs bundle general liability insurance with other policies for more comprehensive coverage. Popular options include:
- Business Owner’s Policy (BOP) – Combines general liability insurance with commercial property insurance at a discounted rate.
- Professional Liability Insurance – Covers claims of errors, omissions, or negligence in professional services.
- Workers’ Compensation Insurance – Required if the LLC has employees; covers work-related injuries and illnesses.
- Cyber Liability Insurance – Protects against data breaches and cyber-attacks.
