By Jessica MartinezContributing Writer, Business & Finance, Encore Editorial
The policy almost everyone needs
General liability covers the fundamentals: a customer slips in your shop, you damage a client's property, an advertising claim goes sideways. It is often the first policy a small business buys and is frequently required by landlords and clients. Premiums scale with your industry's risk class and annual revenue; a consultant pays a few hundred dollars while a roofer pays multiples of that.
The standard limit is $1M per occurrence and $2M aggregate per year. Higher limits cost a bit more and are often specified in contracts. Once you have an estimate, consider bundling GL with property in a BOP. The bundle discount is typically around 10 percent.
The rates behind this estimate
The premium here is a flat per-revenue rate multiplied by your industry factor and your coverage-limit factor. See the 2026 figures the calculator runs on below.
| Input | Rate or factor |
|---|---|
| Base rate | $1.20/$1,000 revenue. Floor: $450. |
| Office / professional factor | 1.0 |
| Retail / hospitality factor | 1.6 |
| Trades / contracting factor | 2.2 |
| Construction (high risk) factor | 2.8 |
| Health / personal care factor | 1.3 |
| Tech / consulting factor | 1.4 |
| $1M/$2M limit factor | 1.0 |
| $2M/$4M limit factor | 1.35 |