Cheapest General Liability Insurance
Next Insurance offers general liability insurance from $11 per month. But these affordable providers might offer more value for your business.
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Here are the top 5 cheapest general liability insurance for small businesses:
- Next: As low as $11/mo
- The Hartford: On average, $67/mo
- Thimble: As low as $17/mo
- FLIP: As low as $25.92/mo
- Simply Business: As low as $21.25/mo
If you sell products or services to customers, they can sue you for many things. You might have to pay legal fees, settle claims, and even shoulder medical bills.
Fortunately, general liability insurance can cover all that, and it doesn't have to be expensive. With these affordable providers, you can continue business without worrying about financial ruin.
5 Cheapest General Liability Insurance
These general liability insurance policies are some of the most affordable in the market today.
But you shouldn't just rely on the cost. Take a look at what each offers, as well as the cons that could break the deal.
- Business liability insurance
- Commercial liability insurance
- Commercial general liability insurance
They all mean the same thing. However, coverage can vary slightly depending on the insurer and policy.
Next Insurance: As low as $11/mo
Next's mission is to provide affordable, customizable insurance for as low as $11/mo.[1] It's insured over 500,000 business owners, from construction services to retail shops.[2]
Next also has over a dozen insurance coverage types, making it an all-in-one solution for businesses that need more than general liability insurance.
These combine general liability and commercial property insurance, so you're protected against lawsuit and property damage costs.
Why we like Next Insurance:
Clients, landlords, and partners may require proof of insurance before signing a contract. Next's instant Certificates of Insurance (COIs) fulfill this need quickly, preventing delays.
In addition, Next Insurance provides instant quotes, so you get an estimate for your insurance needs within 5 minutes. No need to call an agent or fill out lengthy forms.
Its policies are also tailored to over 1,300 different professions and industries. You can even include valuable add-ons to your base policy, such as tools and equipment coverage, professional liability, and commercial auto insurance.
Downsides:
Next Insurance was founded in 2016, making it younger than other insurers. Its shorter operational period means it has less historical data on claims.
Additionally, it received an "A-" rating from AM Best, which is considerably lower than other affordable providers.[2] And it only has a handful of customer reviews on non-affiliated sites, like Trustpilot and Google Reviews.
A COI is a document that proves you have insurance coverage. Clients or partners often require it before they will do business with you.
Looking for a well-established insurance provider? The Hartford's 214-year track record is looking good.
The Hartford: on average, $67/mo
Founded in 1810, Hartford is one of the country's most reliable insurance companies. Backed by over 200 years of experience, it's insured more than 1.5 million small business owners at an average rate of $67/mo.[3][4]
Hartford lets you bundle general liability with other types of business insurance, like commercial property or workers' compensation, for a more comprehensive policy.
Why we like The Hartford:
Hartford's A+ rating from AM Best suggests it has a superior ability to meet its ongoing insurance obligations. It reflects the insurance company's strong balance sheet, operating performance, and risk management practices.[4]
In addition, Hartford offers comprehensive built-in coverages through its enhanced General Liability Choice product. This is something that other providers don't have.
For example, it includes product liability insurance. This protects your business against claims that a product you sold caused damage to the customer.
Lastly, Hartford's in-house adjusters respond to claims more quickly since they don't need to coordinate with a third party. This ensures consistent high-quality customer service.
Downsides:
Hartford could do with some modern updates. For instance, it doesn't have a mobile app for managing policies and getting instant Certificates of Insurance, unlike its competitors.
Hartford's brand recognition and reputation for quality service means its pricing is often more premium than others. Its more comprehensive coverage also comes at a higher cost.
Small businesses typically pay $25 to $83 per month for general liability insurance. The most common policy has $1 million per occurrence and $2 million aggregate limits.
Thimble: as low as $17/mo
Thimble's general liability insurance is geared toward contractors and professional service providers. It has short-term policies that are perfect if you just need temporary coverage.
You can purchase them by the job, month, or even year at prices as low as $17/mo.[6] If you're an event organizer, a photographer, or a general contractor, this could be the right provider for you.
Why we like Thimble:
With Thimble, you can bundle general liability insurance with business equipment protection. This also covers equipment frequently transported between job sites. No more worrying about repair or replacement costs if they're damaged in transit.
Thimble also has a quicker quote process than most. Its goal is to provide an insurance quote in 60 seconds.[7] This is perfect if you only need one-time general liability insurance for a special event, as it doesn't ask too much information.
Downsides:
One major downside is that some of Thimble's special event insurance policies can't be canceled. Once the short-term policy starts, the premium can't be refunded.[8]
Thimble also doesn't underwrite its own policies, so some users have reported difficulties in filing claims. There is no hotline for customer service either since support is exclusively online. This means users may find it challenging to get immediate assistance.
No, general liability insurance isn't typically required by law. However, it's common practice for investors and contractors to ask if you have insurance before agreeing to do business.
FLIP: as low as $25.92/mo
FLIP, short for Food Liability Insurance Program, is a food and beverage insurance for chefs, food distributors, and the like.
With policies priced as low as $25.92/mo, it's best for small to mid-sized food businesses that need packaged insurance.[9]
Why we like FLIP:
FLIP can activate your coverage on the same day. So once you purchase a policy online, you're covered almost immediately. This feature is good for food businesses that need insurance for last-minute events or new business opportunities.
It also offers pre-packaged policies that already have the essential coverages for food businesses. You can choose from low-, mid-, or high-tier packages, and all of them include general liability.
Plus, all of its prices are already displayed on its website. No need to request personalized quotes for every small item.
Downsides:
Unfortunately, FLIP's cap per item is not as big as other insurance providers. Its maximum coverage for tools and equipment is only $10,000 a year.[9]
Another drawback is it only insures entrepreneurs in the food and beverage industry. So, if you also sell non-consumable items, you may want to look elsewhere.
Want more choices before purchasing insurance? Simply Business provides several quotes from multiple insurance providers.
Simply Business: as low as $21.25/mo
Simply Business is an online insurance broker that connects small business owners with insurance providers.
It's best for small businesses that want to compare insurance quickly online. You can get personalized and comprehensive coverage for your business for as low as $21.25/mo.[10]
Why we like Simply Business:
Simply Business delivers a high level of personalization with its offers. For example, you can tailor your policy to cover more people, increase the annual coverage amount, and more.
Entering all the required information takes a while, but you get a highly customized policy in return. It also provides a variety of quotes from different insurance providers. This helps you find the best coverage at the best price.
With Simply Business, you don't have to pay for TRIA if you don't want to. This lowers your insurance premium, which is great if you're doing business in areas with a low risk of terrorism.
Downsides:
As an insurance broker, Simply Business doesn't directly handle insurance claims.[11] You need to contact your carrier through the contact information provided in your account.
It also takes them at least 24 hours to provide a Certificate of Insurance.[12] The lack of 24/7 customer support and mobile app can cause additional delays to your projects and operations.
An insurance broker does not underwrite or issue insurance policies directly. Instead, it acts as an intermediary between small businesses and a network of insurance providers.
Factors that Affect Insurance Costs
The cost of general liability insurance varies based on risk. Risk can be calculated through the following factors:
- Industry and risk level
Businesses in higher-risk industries like construction, manufacturing, and healthcare typically pay higher premiums. Working with high-risk clients also leads to higher insurance costs. - Business size and revenue
The more employees the business has and the higher its revenue, the more expensive insurance premiums get. This is because larger operations tend to pose higher risks. - Location
Areas with higher crime rates, natural disasters, or litigation rates may have higher insurance premiums. - Claims history
Having a history of past claims signals to insurance providers that you have a risky business. Conversely, a clean claims history often results in lower premiums. - Coverage limits and deductibles
The more coverage your business needs, the more you'll pay. However, you can pay lower premiums if you agree to a higher deductible. It's the amount you pay out of pocket before insurance kicks in.
Regardless of these factors, remember that each insurer has its own risk assessment models and pricing structures, so you'll most likely receive different quotes.
What to Look for in a General Liability Insurance
Remember these key factors when choosing a general liability insurance provider:
- Provider's financial strength and reputation
Check the financial strength and stability of the insurance company. A strong financial rating from AM Best suggests that the provider is reliable and capable of paying out claims. - Coverage customization and modification
Look for policies that let you add a wide range of risks. This includes bodily injury, property damage, personal and advertising injury, and medical payments. It's a plus if you can make policy modifications as your business grows or changes. - Claims handling
Research the provider's claims process. Look for reviews and testimonials to understand how easy filing a claim would be and how quickly they're processed. These will also show you the overall satisfaction of other policyholders. - Competitive and transparent pricing
Compare quotes from multiple providers to ensure you're getting competitive rates. Avoid providers that have hidden costs or unclear pricing structures. - Flexible payment options
Check if the provider offers flexible payment plans, such as monthly, quarterly, or annual payments. - Customer service
Evaluate the provider's customer service. Look for accessible support options, including phone, email, and live chat. The best insurance providers have 24-hour support and get back to you within 24 hours.
The general aggregate limit is the maximum amount an insurance company will pay for all covered losses during the policy period, usually one year. Meanwhile, a per-occurrence limit is the maximum amount it'll pay for a single claim or incident.
Bottom Line
You can get general liability insurance for as low as $11 per month with Next Insurance.
Thimble, Simply Business, FLIP, and The Hartford also provide affordable and valuable options for small businesses.
Compare coverage, customer service, and additional benefits to find the best fit for your needs.
References
- ^ Next Insurance. General Liability Insurance, Retrieved 06/04/2024
- ^ Next Insurance. About Us, Retrieved 06/04/2024
- ^ The Hartford. General Liability Insurance, Retrieved 06/04/2024
- ^ The Hartford. The Hartford Fact Sheet, Retrieved 06/04/2024
- ^ The Hartford. Business Insurance Contact Information, Retrieved 06/04/2024
- ^ Thimble. General Liability Insurance, Retrieved 06/04/2024
- ^ Thimble. Short-Term Liability Insurance, Retrieved 06/04/2024
- ^ Thimble. Event Insurance, Retrieved 06/04/2024
- ^ Food Liability Insurance Program. General Liability Insurance, Retrieved 06/04/2024
- ^ Simply Business. General Liability Insurance, Retrieved 06/04/2024
- ^ Simply Business. Insurance Claims, Retrieved 06/04/2024
- ^ Simply Business. Certificate of Insurance, Retrieved 06/04/2024
Write to Nicole King at feedback@creditdonkey.com. Follow us on Twitter and Facebook for our latest posts.
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