How Much Does $1 Million Liability Insurance Cost? | Insureon (2025)

A $1 million general liability insurance policy means your insurance company will provide financial protection for your business up to $1 million in covered losses or damages. Beyond that $1 million limit, you'll have to pay for costs out of pocket without the help of your insurer.

An important note is that a $1 million policy in commercial general liability coverage isn’t right for every business. Some need more, like a $2 million liability policy. And some want less, such as $300k or $500k liability insurance coverage. It all depends on what your business needs. Lawsuits can prove extremely costly, which is why many business owners choose higher limits.

You'll want to choose coverage limits that'll cover a potential lawsuit, without buying more than needed.

One of the most popular options for small businesses—and one that 90% of Insureon customers choose—is a general liability insurance policy with $1 million / $2 million limits. This includes:

• $1 million per-occurrence limit. While the policy is active, the insurer will pay up to $1 million to cover any single claim.
• $2 million aggregate limit. During the lifetime of the policy (usually one year), the insurer will pay up to $2 million to cover claims.

On average, Insureon customers pay $42 per month, or about $500 annually, for a $1 million general liability insurance policy. Additionally, 29% pay less than $30 per month, and 40% pay between $30 and $60 per month. Customers who need more coverage will likely pay a higher premium.

When purchasing a policy, the deductible should be something you can easily afford. If you're unable to pay for it in a crisis, then your insurance won’t activate to cover your liability claim. The average deductible that Insureon customers choose for general liability insurance is $500.

While state laws play a role in the different types of coverage you are required to carry, the area in which your business is located can affect how much you pay for a policy.

Businesses in high-crime areas or those that receive a large amount of foot traffic will have to carry more coverage than businesses in low-crime areas or have little-to-no foot traffic.

While all of the above factors play a significant role in how your insurance rate is calculated, there are some other factors insurance companies will consider, including:

• Employees that work in a risky environment daily
• Operations in a high-risk industry, like construction
• Existing general liability claims in your insurance history

Your small business’cost of insurancedepends on may key components, and depending on these factors it can be pricey. A more cost-friendly way to purchase insurance is to bundle the policies your business is required or chooses to carry.

One way to save money on your commercial general liability insurance is to purchase a business owner’s policy (BOP), which combines general liability coverage with commercial property insurance under one policy. On average, the cost of a BOP is only $57 per month for Insureon’s customers.

Some business owners in the tech industry may be able to combine with cyber insurance in a to save even more money.

Another bundle small business owners can purchase is a commercial package policy (CPP), which bundles general liability and commercial property. It also allows for more coverage options and higher policy limits, making it a good choice for businesses in higher risk industries who aren't eligible for a BOP.

Small business owners may also find these policies helpful in protecting their businesses:

• Workers’ compensation insurance to cover claims of work-related bodily injuries or illnesses.
• Professional liability insurance in the event a customer is unsatisfied with your work and sues your business.
• Commercial auto insurance if your business owns vehicles that you or your employees drive regularly.

While general liability is predominantly offered with up to $2 million per-occurrence limits and up to $4 million aggregate limits, a commercial umbrella insurance policy can help provide additional liability coverage for more expensive claims.

In addition, umbrella liability insurance can also provide additional coverage limits for commercial auto insurance or an employer’s liability policy.

Some businesses may be required to carry higher limits based on the amount of risk involved with their industry. For example, those in the Allied Health space, such as nurses or chiropractors, may be contractually required to carry a general liability policy with aggregate coverage limits up to $6 million.

Because few carriers will offer a standard general liability policy with this amount of coverage, the most simple way to achieve this is by purchasing a commercial umbrella insurance policy. Commercial umbrella insurance costs on average about $75 per month for each $1 million of additional coverage needed.

Therefore, if your business is looking to obtain per-occurrence liability coverage for $5 million, a cost-effective solution would be to purchase a general liability policy with $2 million per-occurrence limit, and then a $3M umbrella liability policy.

While many factors affect the cost of general liability insurance, with several outside your control, there are ways to find affordable small business insurance. To get free quotes, fill out Insureon’s easy online application with basic information about your business, such as revenue and number of employees.

You can consult with a licensed insurance agent at any point in the process. Once you pay for your policy, you can download a certificate of insurance (COI) to show clients and others that your business is protected.

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