How Much Does $1 Million Liability Insurance Cost?

How Much Does $1 Million of Business Insurance Cost?

On average, a $1 million liability insurance policy costs $69 a month, or $824 a year, for our small business owners.**

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Updated: 10/22/2025

Read Time: 3 minutes

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Key Takeaways

A $1 million liability insurance policy pays up to $1 million in damages for a covered loss. Any damages beyond $1 million will have to be covered by the policyholder.
On average, our small business owners pay about $69 a month, or $824 a year, for a $1 million liability insurance policy.**
Having $1 million in liability coverage may not be right for every business. You may need higher or lower policy limits depending on your specific needs.

What Factors Affect the Cost of Business Liability Insurance?

Liability insurance costs vary depending on your operation. To determine your insurance premium and the aggregate limit that’s right for you, insurance companies may consider these factors:

Industry
Type of assets
Number of employees
Size of payroll
Claims history
Property owned

Generally, you’ll pay a higher premium for coverage if your business:

Has employees that face risks each day on the job
Is in a high-risk industry
Has an existing history of insurance claims

To learn more about the insurance coverage limits you need, get a quote today.

What Does It Mean To Have $1 Million in Liability Insurance?

A $1 million liability insurance policy pays up to $1 million in damages for a covered loss. You'll have to pay any additional costs beyond $1 million.

Remember:

$1 million in liability coverage isn’t always exactly what every business needs. You may need more or less coverage depending on your business.

Get a $1 Million Liability Insurance Policy Quote

Small business insurance is essential for running a successful operation. We’ve been helping businesses for over 200 years get the protection they need. We can help you find annual premiums for coverages that work for your budget and business. To learn more, get a quote today.

Frequently Asked Questions About Liability Insurance

What Does Liability Insurance Cover?

Liability insurance helps financially protect your business if a customer or third party claims your business caused them:

Bodily injuries
Property damage
Personal injury, like libel or slander
Advertising injury
Copyright infringement
Reputational harm

Your general liability policy can help cover your legal fees and settlement costs if you’re sued by a customer or third party.

What Other Insurance Policies Do Businesses Need?

A $1 million liability policy doesn’t cover every type of claim. So, you'll likely need other types of business insurance to make sure you’re fully protected.

Workers’ compensation insurance helps provide disability benefits and covers medical care for employees with a work-related injury or illness. It can help pay for damages if an employee sues you because of their work-related injury. This coverage can also help replace lost wages if they take time off from work to recover. Workers’ compensation insurance costs an average of $86 a month, or $1,032 a year.**

A Business Owners’ Policy (BOP) combines business property and business liability insurance into one convenient policy. It can help cover your business from claims resulting from fire, theft and other covered incidents. On average, our small business owners pay $1,687 a year, or $141 a month, for a BOP.**

Commercial auto insurance helps protect you and your employees on the road if you drive a business-owned vehicle for work. On average, our small business owners pay $574 a month for commercial auto insurance.**

Can I Get More Than $1 Million in Liability Insurance?

If your business needs more than a $1 million liability policy, you can extend your policy limits with commercial umbrella insurance. Commercial umbrella insurance helps provide an extra layer of protection if a claim exceeds the limits of your general liability policy. The Hartford’s commercial umbrella insurance is flexible too. We can help extend the liability coverage that you may have with another insurance company.

What Is Liability Insurance?

Certificate of Liability Insurance

When Is Liability Insurance Needed?

** Costs, premiums, and coverages mentioned are estimates and are not guaranteed. Actual cost, premium, and coverage are determined at the time of quote or issue and are specific to an individual risk. Premiums are based on information provided to The Hartford, including, but not limited to, underwriting and rating criteria. All examples included on this website or in an advertisement are intended for informational purposes only and are not an offer or a guarantee of premium or coverage. Coverage and products described are subject to the terms and conditions found in the policy contract. Any educational information provided about available coverages does not modify the policy language or imply that any claim is covered. Products are not available in all states or for all businesses.