Best General Liability Insurance for Small Businesses in 2026
General liability insurance protects businesses against claims that they’ve harmed someone or their property.
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General liability insurance protects your business if a person accuses you of harming them or their property. We recommend that every business have a general liability policy.
Best general liability insurance companies
Nearly all of the best business insurance companies sell general liability policies. The NerdWallet editorial team’s top choices are companies that:
- Get relatively few complaints to regulators about their general liability coverage.
- Get high financial strength ratings from credit rating agencies, which should mean they have enough money to pay out all their claims.
- Let you get a quote and make a purchase online so you can get the policy you need fast.
NerdWallet recommends getting multiple quotes so you can find the best coverage at the best price.
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Chubb
Businesses with less than $2 million in revenue can get a business owners’ policy online from Chubb. If you have a physical location, a BOP is the best way to get general liability insurance. That’s because these policies include not only that coverage, but also commercial property insurance. (Chubb’s has business interruption insurance, too.) Chubb had fewer complaints about general liability insurance filed with state regulators than expected given its market share, according to NerdWallet's analysis.
Read NerdWallet’s review of Chubb small-business insurance.
Ergo Next
If you need general liability insurance quickly, you can get a quote and buy a policy online in minutes from Ergo Next. The company says its general liability insurance policies start at $19 per month and include some product liability coverage.
Read NerdWallet’s review of Ergo Next business insurance.
Nationwide
In addition to general liability insurance, Nationwide offers specialty coverages like surety and fidelity bonds. Those policies may be important for construction companies, cleaning businesses and other specialty firms. You can get a quote online, but you’ll have to work with an agent to buy a policy.
Read NerdWallet’s review of Nationwide business insurance.
Thimble
Thimble offers general liability insurance by the month or for individual events. That makes it a good option for businesses that need coverage fast to comply with contractual requirements. The company says it sells policies starting at $17 per month.
Read NerdWallet’s review of Thimble business insurance.
Hiscox
Hiscox lets you buy both general liability insurance and professional liability insurance online. You should have the latter if you give advice to clients for a fee. Hiscox can tailor its professional liability policies to the specific risks of different industries, like general contractors and artisan subcontractors.
Read NerdWallet’s review of Hiscox business insurance.
What is general liability insurance?
General liability insurance is coverage that protects a business against lawsuits for certain kinds of injury and property damage. It can pay out to help your business cover legal costs and any settlements you might owe.
All businesses should have general liability insurance, since all businesses are at risk of lawsuits. Even if a judge dismisses the suit, you’ll be on the hook for legal defense costs. Insurance will help you cover those expenses.
What does general liability insurance cover?
Commercial general liability insurance policies can pay out in cases of:
Bodily injuries that occur on your property or as a result of an interaction with your business or employees.
Third-party property damage, or damage to someone else’s property (not yours) caused by your business or its employees.
Personal and advertising injury, which can include claims of copyright infringement, libel or slander.
It can also cover medical payments for injuries that happen on your property, regardless of whose fault the injury was or whether a legal claim is filed.
It can also cover medical payments for injuries that happen on your property, regardless of whose fault the injury was or whether a legal claim is filed.
What are the most common general liability insurance claims?
Claims covered by general liability insurance policies include:
- Customer injuries, or so-called “slip-and-fall” claims. These account for about 20% of all small-business insurance claims, including both liability and property insurance claims, according to a 2025 study from The Hartford. The average cost of a claim is $45,000.
- Reputational harm claims, like libel and slander. These claims are relatively rare — less than 15% of all claims, per The Hartford. But they cost $35,000 on average.
What claims doesn’t general liability insurance cover?
You may need the following types of insurance to supplement your general liability insurance:
- Product liability insurance. This provides protection against claims that a product your business manufactured, delivered or sold caused harm to a person or property. General liability insurance policies typically include some of this coverage. But if you operate a manufacturing, retail or wholesale business, shop for a separate and more robust product liability coverage.
- Professional liability insurance. Also called errors and omissions insurance, this coverage can protect a business that performs a service — think accountants, lawyers, doctors and architects — if they’re sued by a client who thinks they were negligent or made a mistake that resulted in harm.
- Workers’ compensation insurance. The part of a general liability policy that covers bodily injury liability only applies to third parties, not to employees. Instead, workers’ comp pays for medical costs, physical therapy and lost wages while an employee recovers from a workplace injury.
» COMPARE: General liability vs. professional liability insurance | General liability vs. workers’ comp
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Does your business need general liability insurance?
NerdWallet recommends that all businesses carry general liability insurance, even though it’s usually not required by law. It provides a baseline level of protection that can keep your business afloat if you’re sued.
Beyond that, your landlord, client or contractor may insist you have coverage before they’ll work with you. That’s because if you’re responsible for an accident or injury but don’t have insurance, your landlord or client’s policy may have to cover the costs — driving up their future premiums.
For example:
- Landlords may require general liability insurance before you sign a lease.
- Venues might require it before you can do business there. For instance, a moving company might have to show proof of insurance before unloading at an apartment building.
- If you’re an independent contractor, a business that hires you might require you to carry insurance. For instance, a personal trainer might have to show proof of insurance before a gym lets them see clients on site.
In order for general liability insurance to cover a claim, you’ll need to have a policy in place at the time the accident happens.
When to buy a business owner’s policy instead
Insurers often package general liability insurance in a business owner’s policy alongside business property insurance and business income insurance. Look for a BOP instead of general liability insurance if:
- You rent space or own a building.
- You’ve invested in inventory or equipment.
- A disaster or accident would force your business to close, cutting off revenue.
What general liability insurance policy limits mean
General liability insurance policies typically include two numbers: the per-occurrence limit and the aggregate limit. The higher your limits, the more expensive your premiums will typically be.
- Per-occurrence limit. The maximum amount the insurance company will pay out for a single claim. A typical general liability policy includes a per-occurrence limit of $1 million, which includes both legal and settlement costs.
- Aggregate limit. The total amount the insurer will pay out in a single policy period, which is usually a year. A typical general liability policy includes an aggregate limit of $2 million. The aggregate limit refreshes every policy period.
How much general liability coverage should you have?
The typical general liability policy offers $1 million per claim and $2 million in total coverage. Low-risk small businesses — think home-based businesses and consultants — may be OK with less than that. Larger businesses with lots of customers or public-facing storefronts should consider more.
The most common general liability insurance claims are so-called “slip-and-fall” lawsuits, according to business insurance company The Hartford. If you have a store or office that customers can walk into, there are just more people who could file that kind of claim. If you work from your own home, it’s a lot less likely.
You’ll have the opportunity to change your limits every year. If something about your business changes midway through your policy period, contact your insurance company and see if you can adjust your coverage.
How much does general liability insurance cost?
General liability insurance has a median premium of $45 per month or $500 per year, according to insurance marketplace Insureon.
But the cost can vary widely depending on:
- What your company does.
- Where you’re located.
- How many employees you have.
- Whether you have prior claims.
Online brokerage Coverdash shared general liability cost data with NerdWallet in 2025. For businesses with less than $1 million in revenue, premiums fell into these ranges:
- Retail businesses. $700-$1,500 annually ($58-$125 per month).
- Professional, scientific and technical services. $700-$1,300 annually ($58-$108 per month).
- Wholesale trade. $700-$2,500 annually ($58-$208 per month).
- Accommodation and food services. $1,000-$3,000 annually ($83-$208 per month).
- Construction businesses. Up to $5,000 annually (up to $417 per month).
Online quotes can give you a sense of how much your business’s premiums might be.
How to get general liability insurance
Follow these steps to get a general liability insurance policy:
- Find out what coverage you have to have. Is a landlord or prospective business partner asking you for proof of insurance? If so, look closely at what their requirements are.
- Decide how much coverage you need. This will affect the price of your premiums. Do you just need insurance to comply with a contract? Then a lower level of coverage might be enough. Are you in an industry prone to lawsuits? Then you may take comfort in higher limits.
- Get an agent, if you want one. If you want personalized professional help, find an agent or broker. This is a professional who will help you get quotes from multiple companies and then buy a policy. In general, working with an agent takes more time than buying coverage online, especially if your needs are pretty simple. But it can be helpful down the road if you need more specialized insurance policies.
- Get several quotes. Every insurance company has its own pricing formulas, which means each insurance company will charge you a different price.
- Compare coverage. It’s easy to see which policy charges the lowest premiums. But double-check the policy limits and deductible, along with the period of time it covers. Compare exclusions, too — one policy might cover a situation that another policy does not.
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- 1. The Hartford. Water And Freezing Damage, Burglary Lead The Hartford’s Top Five Small-Business Claims. Accessed Jan 23, 2026.
Methodology
Business insurance ratings methodology
NerdWallet’s business insurance ratings reward companies that offer small-business owners reliability and ease of use. Ratings are based on weighted averages of scores in several categories, including financial strength, customer complaint data, shopping experience and customer service. Learn more about how we rate small-business insurance companies.
These ratings are a guide, but insurance policy details and prices can vary widely from business to business and provider to provider. We encourage you to shop around and compare several insurance quotes.
NerdWallet does not receive compensation for any reviews. Read our editorial guidelines.
Insurer complaints methodology
NerdWallet examined complaints received by state insurance regulators and reported to the National Association of Insurance Commissioners in 2018-2021.
To assess how insurers compare to one another, the NAIC calculates a complaint index each year for each subsidiary, measuring its share of total complaints relative to its size, or share of total premiums in the industry. To evaluate a company’s complaint history, NerdWallet calculated a similar index for each insurer, weighted by market shares of each subsidiary, over the three-year period.
Our star ratings consider ratios for both general liability insurance and commercial property insurance. When an insurer sells policies that are underwritten by several different insurance companies, we consider the NAIC complaint ratios of all the underwriters.
On this page
- Best general liability insurance companies
- What is general liability insurance?
- What does general liability insurance cover?
- What claims doesn’t general liability insurance cover?
- Does your business need general liability insurance?
- What general liability insurance policy limits mean
- How much general liability coverage should you have?
- How much does general liability insurance cost?
- How to get general liability insurance
