How Much Does Liability Insurance Cost?

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Key Takeaways

Liability insurance protects you and your business from third-party claims of professional, personal or property damage.
A Business Owner’s Policy averages about $140 a month. Many factors affect insurance cost including your industry, location and services.**
From bundling to choosing your deductible, The Hartford offers several ways to save on liability insurance.

What Type of Liability Insurance Do I Need?

As a small business owner, you need liability insurance to help protect your business from various third-party claims. Understanding these options can help you choose the right insurance to help safeguard your business effectively.

Business Liability Insurance

There are different types of liability insurance coverages you can get to help protect your business from liability claims.

Commercial general liability insurance helps cover claims alleging that your business caused bodily injury or property damage to someone else or their belongings.
Professional liability insurance, also known as errors and omissions insurance, helps cover legal costs and judgments made against you if a client sues your business for making mistakes in the professional services you provide.
Data breach insurance helps you respond if personally identifiable information is stolen from your business. Some insurers may refer to this coverage as cyber liability insurance.
Commercial umbrella insurance helps cover the costs that exceed your underlying liability coverage limits.
Commercial auto insurance helps protect you and your employees on the road if you drive a company-owned car for business.
Workers’ compensation insurance provides benefits for employees who have a work-related injury or illness.

Personal Liability Insurance

You may want to consider coverage to help protect you from potential lawsuits in personal situations, including:

Personal liability insurance to help protect you if someone gets hurt while on your property or you’re found responsible for damaging another person’s property. This coverage is often part of your homeowners or renters insurance policy.
Bodily injury liability insurance to help pay medical costs if you hurt someone in a car accident.
Property damage liability coverage to help pay for repairs if you cause a car accident.
To learn more about average insurance rates for small businesses, get a quote from us today.

Average Liability Insurance Costs for The Hartford’s Customers

Liability insurance coverage varies in cost because each business and person has unique needs. Here are the average costs that The Hartford’s customers pay for these insurance coverages.

Coverage	Average Annual Premium	Average Monthly Premium**
Business Owner’s Policy (BOP)	$1,687	$141
General Liability Insurance (GLI)	$810	$68
Workers’ Compensation Insurance	$1,032	$86
Professional Liability Insurance (PLI)	$912	$62

What Factors Impact Liability Insurance Costs?

Whether you need general liability insurance, professional liability insurance or workers’ compensation, there are a number of factors that impact your liability insurance costs, such as:

Industry: Your exposure to risk influences how much you’ll pay for your premium. For instance, landscapers might face more risk than accountants for certain liability policies, like general liability insurance.
Location: Your geographical business location can impact your insurance premium. For example, areas with higher populations often have an increased risk of bodily injury. This means certain zip codes and cities can have higher rates.
Deductible: Higher deductibles can give you a lower premium than policies with lower deductibles.
Years in business: The experience you have can factor into how much you pay for an insurance premium.

3 Tips for Saving on Liability Insurance Cost

We can help you save on your small business insurance costs with options to bundle your policies and adjust your premiums and deductibles.

Bundling Multiple Policies

You may be able to save on costs by purchasing multiple policies from the same insurer. With a Business Owner’s Policy (BOP) from The Hartford, you can bundle your business income, general liability and commercial property insurance into one convenient policy. You can also add other insurance coverages, like a data breach policy, to tailor your insurance policy to your specific needs.

Choosing Coverage Amounts

You may be able to lower your insurance premium by choosing a higher deductible. A deductible is the amount you must pay out of pocket when an accident happens before insurance will cover the rest of the claim. A higher deductible means more out-of-pocket expenses if you file a claim.

Creating a Risk Management Plan

The safer your business, the lower your insurance risk and the lower your cost. Businesses with a history of accidents and claims could face increased premiums. Manage your risk with employee training and safety programs to help keep accidents at a minimum and premiums low.

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Get Liability Coverage in Minutes

We’re an insurance company you can trust for small business and personal liability insurance coverage. In fact, we’ve been helping our customers learn how to get liability insurance for a small business for over 200 years. Find out more and get a quote from us today.

Frequently Asked Questions About Liability Insurance for Small Businesses

How Much Is General Liability Insurance for a Small Business?

Liability insurance can help when your business faces legal defense costs, consultant fees, lawyer costs and lawsuit settlements. It’s important to compare quotes and coverages when considering cost. On average, general liability insurance from The Hartford costs about $810 a year.**

What’s the Average Cost for Workers’ Compensation Insurance?

Most of The Hartford’s customers with less than $300,000 in payroll pay an average of $81 a month for workers’ compensation insurance. Some policies can start as low as $13 a month.** Many states require business owners with more than one employee to have workers’ compensation insurance in case they have a work-related injury or illness. Your workers' compensation insurance cost can depend on:

The number of employees you have
The types of work done by your employees
Your state’s requirements

What Type of Liability Insurance Do Small Businesses Need?

The type of liability coverage you need depends on the unique needs of your business. Small businesses can start with these coverages:

** 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.

This page outlines in general terms the coverages that may be afforded under a policy from The Hartford. All policies must be examined carefully to determine suitability for your needs and to identify any exclusions, limitations or any other terms and conditions that may specifically affect coverage. In the event of a conflict, the terms and conditions of the policy prevail.

All Hartford coverages and services described on this page may be offered by one or more of the property and casualty insurance company subsidiaries of The Hartford Insurance Group, Inc. In Arizona, California, New Hampshire, Texas, and Washington by Hartford Fire Insurance Company, Hartford Casualty Insurance Company, Hartford Accident & Indemnity Company, Hartford Underwriters Insurance Company, Twin City Fire Insurance Company, Pacific Insurance Company, Limited, Sentinel Insurance Company, LTD (CA license #8701), Hartford Lloyd's Insurance Company, Hartford Insurance Company of Illinois, Hartford Insurance Company of the Midwest, Trumbull Insurance Company, Hartford Insurance Company of the Southeast, and Property & Casualty Insurance Company of Hartford and its property and casualty insurance company affiliates, One Hartford Plaza, Hartford, CT 06155.

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