How Much Does New Jersey General Liability Insurance Cost? (2023 Rates)

Thang Truong
Thang Truong
Updated on:

In recent years, the cost of general liability insurance in New Jersey has increased significantly. While there are a number of factors that contribute to this increase, the rising number of personal injury lawsuits is one of the main drivers. As a business owner, it is important to be aware of these costs to budget accordingly.

If you are considering purchasing general liability insurance, it is important to shop around and compare rates. There are a number of reputable insurers in New Jersey, and each one offers a variety of policies and coverage options. Be sure to ask questions and read the fine print, so that you understand exactly what you are buying.

General liability insurance can provide peace of mind in case of an accident or lawsuit. It can also help protect your business assets in the event that you are sued. Even its cost has been increasing in the past few years, it is still a very small investment to protect the business you have worked so hard to build. And there are ways to find a cheap policy too. 

How much does general liability insurance cost in New Jersey?

On average, small businesses in New Jersey pay $42 per month, or $504 per year for a $300/$500K general liability insurance policy. A $1M/$3M policy would cost them, on average, $51 per month. 

Most small businesses in New Jersey pay between $350 and $5,000 per year for their general liability insurance. It is a wide range because general liability insurance cost varies significantly from one business to another depending on several factors that we discuss in the details below. 

Keep in mind that these are just the averages. Your rates will be different. Different insurance companies will give you different rates because they have different underwriting models, ie. they assess risks a bit differently from one another. Be sure to shop around to compare several quotes to find the cheapest one for you. We recommend the following providers if you want to get quotes online and comparing several quotes to find the cheapest one is your top priority: 

  • NEXT: the best digital carrier with affordable rates 
  • Simply Business: the best broker to get and compare several quotes to find the cheapest one for you. 
  • Smart Financial: the best broker if you prefer working with experienced agents 

What influences the general liability insurance cost in New Jersey?

The cost of general liability insurance is determined by your specific business nature. Your company is one-of-a-kind, and so are the risks. General liability insurance cost is influenced by several factors, including:

Specific industries  

The type of industry where you work and the types of risks associated with the industry will primarily affect the cost of your premium. Companies that work in risky industries will have to pay more compared with those that work in industries with less risk. For instance, an accounting service firm might not have to pay as much as a contracting or construction business because an accounting service firm has a much lower risk profile than a contracting or construction business.

Business’s location 

If your business is located in a large city in New Jersey like Jersey city, you will pay more than those in suburban areas of New Jersey. That is because large cities have more people, and there are more chances that issues will happen there. Similarly, if you work in a city where the claims rate is higher based on historical data, you will pay more.

The number of staff 

The more employees you have, the more the chance of making mistakes that can cause problems for your client. So, companies that have more employees will likely pay more for their general liability insurance. 

The number of locations 

The more locations your business has and the bigger the location is, the more likely you’ll have customer injuries in your business’s locations, which could result in more lawsuits.

Revenue and number of customers  

The more customers you have, the more revenue your business generates, the more likely your customers get injured at your business locations or their property is damaged due to your business operations, and the more likely they will sue. All of these lead to a higher rate for your general liability insurance. 

Coverage amount 

A higher limit means you are getting better coverage. The maximum amount the insurer will pay you if an incident occurs. However, the higher your limits, the higher your premium. A typical general liability insurance policy in New Jersey has $1M/$2M coverage limits.

Your policy’s deductibles

Your deductible is the amount you will pay from your pocket when the incident occurs—the higher your deductible, the lower the cost of your premium. But then, a higher deductible means you way pay more if an incident occurs. 

Years of experience in business

New companies tend to pay more for general liability than giant corporations. 

Your business’s claim history

Prior general liability claims are a major red flag for insurers. It tells the insurer that you are a risky business owner. As such, you will pay more to get their protection. 

How to find cheap general liability insurance in New Jersey?

To get affordable general liability insurance in New Jersey, below are a few practical tips: 

Compare several rates to find the cheapest one 

The only way to find the best and cheapest quote for your contracting business is to shop around and compare several quotes.

The mistake most people make is to do that once and stop. Even after getting the best bargain, you still need to find another one. Insurance companies frequently change their rates. So, when it comes time to renew, make sure you shop around again to find the best deal for your company.

We recommend working with a good digital broker to compare several quotes in one place. Below are some of these brokers for your consideration:

  • Simply Business: Best for finding low-cost coverage
  • CoverWallet: Best for comparing several quotes from top-rated carriers
  • Smart Financial: Best if you prefer working with experienced agents
  • InsurePro: Best for short-term temporary coverage

Ask for discounts and offers 

Insurers always have discounts and offers for their clients. If they don’t mention it to you, you need to ask. Whether you’re buying online or through an agent, there is always some discount.  

Good insurance companies always have a list of discounts on their websites where you can check if you qualify. Make sure you take advantage of any of those discounts available to your company. 

Bundle the policies 

Bundling several business insurance policies can also help you get discounts. Whenever you can, try to obtain your policies from the same place to obtain bundle discounts and save money on premiums.

Workplace safety protocols and practices

In most cases, an organization’s general liability insurance cost will be affected by the number and severity of workplace safety incidents. Insurance companies will often charge more for businesses that have a history of safety incidents and violations, as they are seen as being more risky to insure. Additionally, organizations that have implemented effective safety protocols and practices are typically rewarded with lower premiums. This is because insurance companies perceive these businesses as being less likely to experience an incident that would lead to a claim.

Learn more at the cheapest general liability insurance companies

Which businesses need general liability insurance in  New Jersey?

The best way to protect your company is to have it correctly insured. General liability is best suited for businesses that have the following characteristics.

  • Your business operates in some physical location whether it is in an office, warehouse, or front store, whether you rent or own the location
  • Your customers are conducting their business at your locations 
  • You have to meet your clients either at your worksite or in their homes. 

 Listed below are a few examples of businesses that may fit the bill:

  • Artisan contractors
  • Consulting – Learn more about consulting business insurance 
  • IT contractors
  • Janitorial services – Learn more about business cleaning insurance
  • Landscaping companies – Learn more about landscaping insurance
  • Marketing
  • Real estate agents
  • Restaurants – Learn more about general liability insurance for restaurants
  • Schools or offices

Each business is unique, so make sure you inquire if the policy is right for your business.  

How to buy general liability insurance online in New Jersey

You have several options to purchase general liability insurance in New Jersey for your business. To make things easier, the options are divided into three broad categories as follows:

Digital brokers in New Jersey

Digital brokers work like insuretech companies. However, they have more experience. These companies do not have their policies; instead, they assist businesses in connecting with their insurers so that they can purchase the policies of their choice. If you have never purchased a policy before, this is probably a good place to start. 

Examples you can use include:

  • Simply Business 
  • Smart Financial 
  • CoverWallet
  • Tivly 
  • InsurePro

Here is a sample quote for an accounting firm with 2 full-time employees obtained from CoverWallet. 


  • Fast online quotes, in most cases
  • Companies that have issues finding policies may find something here.


  • They only offer policies from their partners
  • You have to file a claim directly with the carrier.

Learn more at the best general liability insurance companies in New Jersey

Traditional insurance companies

As the name suggests, companies in this category are those that come to mind when people think of insurance. The majority of them have the experience and financial stability to provide you with superior coverage options. They cover the majority of businesses, including those in the riskiest industries like construction.

Examples of companies in this category include:

  • Chubb 
  • Hiscox
  • Liberty Mutual
  • The Hartford

The following picture is a sample quote for an IT consulting firm with 2 full-time employees obtained from Chubb insurance.


  • You get reliable coverage for almost any industry.
  • Most of them have extensive experience to give you the best coverage.
  • They have other policies that you can buy and bundle for discounts   


  • The policies from these companies might be expensive
  • These companies don’t usually ofer quotes online. You are more likely to work with their agents 

Learn more at how and where to get and compare general liability insurance quotes

Insuretech companies

These businesses are new to the industry. These are tech companies that aim to make insurance affordable and straightforward. They assist businesses in locating the most appropriate and cost-effective quotes for their operations online. They do this using the latest technology tools like artificial intelligence. 


  • Fast quotes that take less than 10 minutes 
  • All operations are done online via the internet 
  • Easy to use platforms.  


  • These companies do not offer policies for risky industries like construction or handyman or trucking businesses. 

Examples include:

  • NEXT 
  • Thimble
  • Embroker

Here is a sample quote for a cleaning firm with 2 full-time employees from Thimble 

Learn more about buying cheap general liability insurance online

General liability insurance requirements in New Jersey 

General liability insurance is not legally required for all businesses in New Jersey. However, it is a smart decision to have the policy. 

However, small businesses in New Jersey should have general liability insurance because it can protect them from a variety of risks. For example, general liability insurance can help businesses cover the costs associated with any legal fees or damages that may arise from an accident or injury on their property. It should be noted that premise liability is the second most lawsuit category against small businesses in New Jersey. The average cost of a lawsuit is $250,000, which is a huge expense for any business in New Jersey. 

By having general liability insurance, small businesses can rest assured that they are covered in the event of any unfortunate incident.

In fact, many large companies in New Jersey do not enter business agreements with vendors before they are sure the vendors have general liability insurance coverage. 

Many people wouldn’t sign a contract with construction contractors or any type of handyman contractors if the contractors do not have general liability coverage.  

Carrying a general liability policy shows that you are responsible enough to do business with. It shows that your business is prepared to face almost any risk that comes its way. 

What does general liability insurance cover? 

General liability insurance (GL), also known as business liability insurance, or commercial general liability, is a coverage that can protect you from a variety of claims arising from your business operations,

These claims may include the following:  

Bodily injury 

General liability insurance protects against business-related incidents that cause bodily harm to a third party. For instance, if one of your employees mistakenly drops on hammer on someone’s foot, this coverage should cover any damages. This coverage, however, only does not apply to employee injuries.

Property damage

General liability can also protect you from any third-party property damage caused by your business operations. For example, imagine you break a client’s window while cleaning their apartment; this policy should cover the damages.  

Product liability

General liability insurance protects against liability for faulty products. Products are any goods that your company manufactures, sells, or distributes. This coverage protects a business if such a product causes physical injury or illness. For instance, if your customer becomes sick after buying infected food from you.  

Completed operations liability 

Completed operations coverage is just like products liability. It, however, protects you against faulty services or work performed by your business. For coverage to apply, you must finish such a project. 

For example, a customer hires your service clean their bathroom. However, you forget to turn off a tap in the bathroom, causing the bathroom to flood after you left. Your general liability may cover the damages caused since you already left when the issue happened. 

Personal and advertising injury

Your general liability policy may also cover any written or verbal communications that cause harm to a third party. This includes, among other things, libel, slander, malicious mischief, and copyright infringement. 

For example, if your local competitor accused you of spreading rumors about their poor customer service. The company can sue you for personal and advertising injury if the competitor’s reputation and profitability are harmed. In such a case,  general liability will cover you. 

Damages to rented property.

Damage to land, buildings, or structures you rent or lease is also typically covered under general liability coverage. For coverage to apply, the insured or their business must be legally liable for the damages. 

For example, a local baker may rent a property that catches fire due to a careless employee leaving the oven unattended. General liability may cover the damages because the business operations caused the fire. On the other hand, this coverage would not apply if a lightning strike started the fire.

Learn more about general liability insurance coverage

What does general liability insurance not cover?

Your general liability will not protect you from all business-related risks. To cover some risks, you may require additional insurance coverage not covered by general liability insurance. There are numerous other products available to protect your company. Here’s a quick rundown:

Professional blunders – If your company offers a service or advice, you should look into professional liability insurance. Learn more at the best professional liability insurance companies.

General liability insurance vs. product liability insurance

There are some similarities and differences between general liability insurance and product liability insurance. They both provide coverage for bodily injury and property damage to a company’s customers.

General liability insurance covers a company for any legal issues that may arise from its business operations. This could include things like accidents on company property or injuries sustained by employees. Product liability insurance, on the other hand, covers a company for any legal issues that may arise from defects in its products. This could include injuries caused by a defective product or damage to property caused by a defective product.

Generally, a company will need general liability insurance but not product liability insurance. However, if a company manufactures or sells products, it will likely need product liability insurance.

You should also be aware that some insurance companies include product liability coverage in their general liability policies. However, these policies are less likely to be available for manufacturers or retailers since manufacturers and retailers should probably need a robust standa-alone product liability insurance policy.

General liability insurance vs. workers comp insurance

Both general liability insurance and workers comp insurance provide protection for companies when someone is injured at your workplace or due to your business operations.

However, workers comp insurance is designed to provide benefits to employees who are injured or become ill as a result of their job. These benefits can include medical expenses, income replacement, and death benefits. Workers comp insurance is mandatory in most states, whereas general liability insurance is not. General liability insurance provides coverage for injuries or damages that occur to your customers or people who are not your employees at your workplace and as a result of the business’ operations.

General liability insurance vs. professional liability insurance

General liability insurance policies are designed to protect businesses against potential lawsuits arising from third-party injuries or property damage. Professional liability insurance, on the other hand, is specifically designed to protect professionals such as doctors, lawyers, financial advisors, tax preparers, and accountants from potential lawsuits filed by their clients. Professional liability insurance policies typically offer broader coverage than general liability policies, and they can also help protect professionals from damages that may be awarded in a lawsuit.

Thang Truong

Thang Truong covers small business insurance and small business success at BravoPolicy. He is a licensed P&C insurance agent. Previously, he held product leadership positions at, Capital One, NerdWallet, and Mulberry Technology. He holds a MBA degree from UC Berkeley - Haas School of Business.

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