Liability Coverage Needed Calculator

Typical small business GL limits are $1M per occurrence / $2M aggregate. Higher-risk businesses (construction, events, manufacturing) and those with major contracts often require $2M/$4M. Many landlords and clients contractually require $1M minimum.

Employee injuries (need workers comp), professional mistakes (need E&O/professional liability), auto accidents (need commercial auto), data breaches (need cyber), and damage to your own property. GL is third-party bodily injury and property damage only.

Insureon's data shows small businesses pay a median of $42/month ($504/year) for general liability. Low-risk businesses (consulting, marketing) start at $25/month; contractors and restaurants pay $80-$150/month.

Almost always. A million dollars of commercial umbrella runs about $400-$1,000 a year and sits on top of your GL, commercial auto, and other policies, giving far more coverage per dollar than raising a primary limit. It is the most efficient way to buy high limits.

Because you can be held vicariously liable for a subcontractor's negligence on your job, even though they are not your employee. To limit that, require each subcontractor to carry their own certificate of insurance naming you as additional insured, and favor occurrence-based over claims-made coverage where possible.

At every renewal, and whenever revenue, headcount, or contract requirements jump. Limits set when you were billing $500K are dangerously thin once you reach $5M. An annual review is the minimum.