Estimate business general liability insurance premiums based on industry, revenue, payroll, and claims history. Compare coverage levels and deductibles.
The General Liability Insurance Cost Calculator estimates annual premiums for commercial general liability (CGL) insurance based on your business type, revenue, number of employees, and claims history. CGL policies are the standard protection for third-party bodily injury, property damage, and advertising injury claims, so they are one of the first costs businesses compare when planning coverage.
Pricing varies sharply by industry because each class code carries a different level of exposure. A construction contractor, for example, usually pays much more than an office-based consultant, while revenue and payroll also push the premium up as the business gets larger. Claims history, years in business, coverage limits, and deductibles can all move the estimate noticeably.
Enter your business details to see a realistic premium range, then compare the impact of higher limits or deductibles before you request formal quotes. The calculator is useful for budgeting, quote checks, and understanding why one business type pays much more than another.
Use this calculator before you request formal quotes so you have a realistic budget for GL coverage. It helps you see how industry class, business size, claims history, limits, and deductibles affect the premium, which makes it easier to compare quotes or spot a number that looks out of line.
Premium = Base Rate × Rating Factor × (Revenue or Payroll / $1,000) × Experience Mod × Limit Factor × Deductible Credit. Base rates are per-$1,000 of revenue or payroll, varying by class code. Experience mod: 0.85 (no claims) to 1.5+ (multiple claims).
Result: $2,750/year
Construction base rate: ~$5.50 per $1,000 revenue. $500K revenue = $2,750 base. Zero claims experience mod: 0.90 = $2,475. Standard $1M/$2M limit factor 1.0. With slight adjustments for employees and location: approximately $2,500-$3,000/year.
Insurance companies use ISO class codes to categorize businesses by risk. Low-risk industries (office-based consulting, IT services) pay $3-$6 per $1,000 of revenue. Medium-risk (retail, restaurants) pay $5-$12. High-risk (construction, manufacturing) pay $8-$25+. The class code determines the base rate, which is then modified by individual business factors like size, location, claims history, and experience.
Standard CGL policies follow ISO form CG 00 01. Key coverage parts: Coverage A (bodily injury and property damage), Coverage B (personal and advertising injury), Coverage C (medical payments — typically $5,000-$10,000 per person). The aggregate limit caps total payouts per policy period. Products-completed operations has its own aggregate. Defense costs are typically paid in addition to limits (not eroding limits), which is a significant benefit.
GL insurance pricing follows market cycles. "Soft" markets (abundant capacity, low rates) and "hard" markets (restricted capacity, rising rates) alternate in roughly 7-10 year cycles. Recent trends include increased litigation costs, social inflation (larger jury awards), and emerging risks from technology and social media. Business owners should expect 5-15% annual rate increases during hard markets and shop aggressively during soft markets.
CGL covers third-party bodily injury (customer slips in your store), property damage (you damage a client's property), personal/advertising injury (libel, slander), medical payments, and legal defense costs. It does NOT cover employee injuries (that's workers' comp), professional errors (that's E&O), or auto accidents (that's commercial auto).
$1M per occurrence / $2M aggregate is the industry standard minimum. Many contracts and landlords require this minimum. Higher-risk businesses or those with large contracts should consider $2M/$4M. An umbrella policy adds excess limits above the base GL for relatively low cost.
One small claim may increase premiums 10-20% at renewal. Multiple claims can increase premiums 30-100% or lead to non-renewal. A clean claims history (3-5 years) earns credits of 5-15%. The experience modification factor directly multiplies your base premium.
Higher deductibles reduce premiums 5-15%. Bundling with other policies (BOP — Business Owner's Policy) saves 10-20%. Safety programs, certifications, and loss control measures earn credits. Annual pay (vs. monthly) may earn a 5% discount. Shopping 3+ carriers helps find the best rate.
Not required by law in most states (unlike workers' comp), but practically required by: landlords (commercial leases), clients (contracts), and licenses (some professions). Going without GL exposes business owners to personal liability for uninsured claims.
A Business Owner's Policy (BOP) bundles GL with commercial property insurance and often business interruption coverage. BOPs are typically 15-25% cheaper than buying GL + property separately. Most small businesses with physical locations benefit from a BOP over standalone GL.