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The Cheapest General Liability Insurance for Small Businesses (With 2022 Rates)

As the owner of a small business, you watch every dollar to make sure you’re getting the most for your money. General liability insurance is a necessity, but you certainly don’t want to pay more than you absolutely have to. No matter what business you’re in, we’ve conducted comprehensive research and compared quotes from several providers to come up with these top 5 companies for cheap liability insurance for small businesses. 

Who has the Cheapest General Liability Insurance for Small Businesses?

We compared quotes from 12 providers of general liability insurance to recommend the cheapest 5 providers below. Each company is unique in its operation and risk profile. Providers may assess the risks differently. To get the cheapest quotes, you should compare quotes from at least 3 companies below: CoverWallet, Thimble, Hiscox, Next Insurance, and Biberk.


CoverWallet is a digital broker that provides quotes from different carriers for you, so you can go with the cheapest one for your business. Coverage can start within 24 hours. If you’re confused about what you need or have questions, you can speak to a licensed advisor, who can help you narrow down your options. There are no broker fees, and you do get a discount if you bundle two or more policies. We got two quotes for our home-based accounting business. 


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Thimble has fast online quoting, with the added ability to change your policy instantly. Even better, you can get coverage for as long as you need it—as little as an hour. If you have a seasonal business, you can pause your annual policy in the months you’re not working. Most of the online reviews praise the company for how easy it is to get insurance and how affordable the quote was. 

This quote is for a caterer in Denver, CO (no alcohol) for $1 million in coverage.

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Over 300,000 small businesses choose Hiscox because it’s easy to get a quote for a small business. They have other policies, too, and if you bundle you’ll get a 5% discount. If you have a home based business, that also earns you a discount. General liability insurance starts as low as $350 a year, as you can see from our quote for an accounting business operated out of a home in Colorado. 

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Next Insurance

You can get a quote, purchase insurance and get a certificate 100% online at Next. They also have workers compensation and professional liability insurance, so if your small business gets a little bigger, Next can offer you the policies you need. You’ll get a 10% discount if you bundle. They have a 4.7 out of 5 star rating, based on reviews from over 100,000 people. 

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Biberk claims they can save you 20% on your general liability insurance. They have easy online quoting and very positive reviews. You can do everything online, or you can call and talk to an expert. Since they’re a part of Berkshire Hathaway, they have excellent financial strength. 

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Strategies to Save Money on General Liability Insurance

No one wants to pay more than they need to for general liability insurance. Here are some strategies to save you money. 

Shop around. 

Different companies are more friendly towards certain businesses, certain locations, etc. There’s a lot that goes into a general liability quote for a small business, so get quotes from at least three or four carriers before you settle on one. 

>>MORE: Cheapest General Liability Insurance for Contractors

Bundle your policies

If you’re just shopping for general liability insurance, this might not apply to you. However, as your business grows, you might need more insurance. If you get it all from the carrier, you’ll usually get a 5-10% discount. 

>>MORE: The 6 Best General Liability Insurance Providers for General Contractors

Pay in full

You can sometimes score a discount if you pay in full, as opposed to paying by the month. 

Manage risks effectively

You can install security or fire alarms to help promote safety. You can also make sure walkways are clear, spills are cleaned up immediately, areas are well-lit, etc. If you have to make a claim your rates will go up, sometimes by a lot, so make it a point to ensure a safe workplace. 

>>MORE: The 5 Best Providers of Business Insurance for General Contractors

Choose a higher deductible. 

Just make sure you can cover the cost of the deductible if you need to. 

What does General Liability Insurance Cover?

General liability insurance covers:

  • Third-party injuries
  • Property damage (that you cause)
  • Slander and other personal injury
  • Defense costs
  • Medical costs

What doesn’t General Liability Insurance Cover?

General liability doesn’t cover injuries to your employees (that’s workers compensation insurance), damage to your own property (that’s commercial property insurance) or anything you do to intentionally cause someone harm. 

General liability insurance isn’t required usually, unless you’re a contractor, but if rent or lease a location, your landlord may require you to have it. It’s a good idea to have some level of general liability insurance, since accidents can and do happen. Furthermore, people can sue you just about any reason. Anyone who deals with customers should have general liability insurance. 

>>MORE: How Much Does General Liability Insurance Cost?

How Much General Liability Insurance do I Need?

It depends on your business, how much risk there is, and what you’re comfortable with. Insureon estimates that the most popular general liability policy has a $1 million dollar occurrence limit and a $2 million dollar aggregate limit. The first number is the most an insurer will pay per claim, and the second is over the lifetime of the policy. Keep in mind the policy renews every year. 

Last Thoughts

As a small business owner, you don’t want to leave yourself without general liability insurance just in case something happens. You can save yourself some money by shopping around, comparing companies and promoting a safe workplace. An accident may still happen, but at least you’ll have insurance to protect you when if it does.

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