For self-employed contractors, tradespeople, and small business owners who need a cost estimate before they start shopping for coverage.
Most small businesses pay $400 to $1,500 per year for a standard $1M general liability policy. Contractors and tradespeople pay $800 to $3,000. Premium is based on your annual revenue and risk class, typically $1.50 to $8.00 per $1,000 of revenue.
General liability insurance is priced primarily on your annual revenue and the risk profile of your industry. Insurers apply a rate per $1,000 of gross revenue, then adjust for coverage limits, claims history, and the number of employees. A freelance graphic designer at $120,000 revenue pays fundamentally different rates than a plumber at the same revenue level.
Here are benchmark annual premiums for common small business types in 2026:
| Business Type | Annual Revenue | Approx. Annual Premium | Rate per $1K revenue |
|---|---|---|---|
| Freelancer / consultant | $100,000 | $400 to $600 | $1.50 to $3.00 |
| Retail store | $250,000 | $750 to $1,200 | $3.00 to $5.00 |
| HVAC contractor | $300,000 | $900 to $1,800 | $3.00 to $6.00 |
| Plumber | $300,000 | $1,200 to $2,400 | $4.00 to $8.00 |
| General contractor | $500,000 | $2,000 to $4,000 | $4.00 to $8.00 |
| Roofer | $400,000 | $4,000 to $8,000 | $10.00 to $20.00 |
Your coverage limit also affects the price. A $1M per occurrence / $2M aggregate policy is the standard minimum most clients require. Stepping up to $2M per occurrence typically adds 15% to 25% to the annual premium. An umbrella policy can add an extra $1M to $5M of coverage for $300 to $700 per year on top of your base GL.
Claims history matters. A single past claim can increase your renewal premium by 20% to 40%. Multiple claims in three years can make standard markets unavailable, pushing you into surplus lines coverage at 2x to 3x standard rates. Keeping claims off your record is the most reliable way to hold costs flat over time.
General liability (GL) insurance covers claims from third parties for bodily injury, property damage, and personal injury caused by your business operations. It does not cover your own employees (that is workers comp) or your own equipment (that is commercial property). A $1 million GL policy is the standard minimum for most small businesses and contractors.
See your exact GL estimate by industry in 30 seconds
Use the Free GL Insurance Calculator →Divide your annual premium by 12. At $900 per year, that is $75 per month. At $1,800 per year, it is $150 per month. Monthly billing is available from most carriers but typically costs 5% to 10% more annually than paying the full premium upfront.
GL does not cover employee injuries (workers comp), your own tools and equipment (inland marine), professional errors and omissions (E&O policy), vehicles used for business (commercial auto), or intentional acts. Each of these requires a separate policy.
Legally, no. But practically, yes. Most commercial clients, general contractors, and landlords require proof of GL before they will work with you. Without it you are also personally liable for any third-party injury or property damage claims since there is no corporate shield.
Request a COI from your insurer or broker as soon as your policy is active. Most carriers provide it the same day through an online portal. You will need to specify the additional insured name and address for each client who requests one.
For low-risk businesses, Next Insurance, biBERK, and Thimble offer the lowest online quotes, often $400 to $600 per year for $1M coverage. Independent brokers can sometimes beat online prices for mid-risk trades by shopping multiple carriers simultaneously.
Yes, through the "products-completed operations" component of a GL policy. If your completed HVAC installation causes property damage six months later, GL covers it. This component has its own aggregate limit, typically equal to the general aggregate.
Yes. New businesses without prior coverage are placed in standard markets with a clean claims record. You may pay a small surcharge for the first year, typically 5% to 10%, until you establish a coverage history.
Look at four things: the per-occurrence limit, the aggregate limit, the deductible, and the exclusions list. A $400 policy with a $2,500 deductible and a "contractor exclusion" for subcontractor work may be worthless for your business, while a $900 policy with a $0 deductible and no subcontractor exclusion is far more valuable.
This content is for informational purposes only and does not constitute financial, legal, or tax advice. Consult a qualified professional for guidance specific to your situation.