An injury to a customer or client can sink a small business. General liability insurance can protect you against liability for injuries, damages and other claims.
You can get coverage either as part of a business owner’s policy (BOP) or a standalone policy.
CNBC Select has picked the top providers of general liability insurance for small businesses in a variety of categories. (Read our methodology for more information about how we made our selections.)
Best general liability insurance
Best for freelancers: Next
Next Business Insurance
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Cost
The best way to estimate your costs is to request a quote
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Policy highlights
Next covers small businesses in dozens of industries, and a number of different coverage types to choose from. Quotes and claims online make the process quick and digital-friendly.
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App available
Pros
- Wide variety of policies available and quotes are available online
- Certificate of insurance available online immediately
Cons
- Not ranked for customer satisfaction
Who’s this for? Freelancers and independent contractors who want a policy fast will find a lot to love with Next. You can get instant quotes for professional and general liability insurance and both complete the application and get a certificate of insurance online.
Standout benefits: Next offers coverage in dozens of industries freelancers work in —including fitness, design, cleaning, food and beverage and entertainment.
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Best for professionals: biBerk
biBerk Business Insurance
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Cost
The best way to estimate your costs is to request a quote
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Policy highlights
biBerk by Berkshire Hathaway offers business owners and professionals coverage from a well-known insurer and easy online quotes. It offers several types of business insurance, including professional liability insurance and general liability insurance.
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Mobile app
Pros
- Quotes entirely available online
- Professional liability coverage available in all 50 states
- Covers a wide variety of professions
- Cyber liability is an available add-on
Cons
- General liability coverage is not available in all states
- Does not have a mobile app
Who’s this for? A division of Berkshire Hathaway, biBerk offers professional and general liability business insurance in a wide range of fields, including accounting, advertising, healthcare, construction and information technology.
Standout benefits: BiBerk offers several endorsements with its general liability policies, including employee practices liability insurance and hired and non-owned auto liability (HNOA) if you frequently rent cars.
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Best for physical locations: Nationwide
Nationwide Business Insurance
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Cost
The best way to estimate your costs is to request a quote
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Policy highlights
Nationwide offers insurance policies for small and large businesses alike in a variety of industries. A number of insurance types also help business owners to tailor their coverage.
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App available
Pros
- Highly rated for customer satisfaction and financial strength
- Wide variety of industries and coverages sold
Cons
- App doesn’t support business policy management
Who’s this for? In addition to general liability insurance, Nationwide offers commercial property coverage that protects your building and merchandise from vandalism, theft, severe weather or other damage or loss.
Standout benefits: Nationwide’s cyber liability coverage can help if you’re the victim of a cyberattack or data breach.
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Best for companies with employees: Travelers
Travelers Business Insurance
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Cost
The best way to estimate your costs is to request a quote
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Policy highlights
Travelers is highly ranked for financial strength and has a below average complaint index with the NAIC. It offers unique features like TravPay, which links to payroll to your worker’s compensation policy, and TravComp, which can help handle worker’s compensation claims.
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App available
Pros
- Rated A++ for financial strength by AM Best, and below average NAIC complaint index score
- Unique features can help manage worker’s compensation
Cons
- Online quotes aren’t available for business policies
Who’s this for? Travelers’ general liability insurance can be paired with policies for businesses with employees, like compensation plans that link directly to payroll.
Standout benefits: Travelers also offers worker’s compensation for small businesses, a requirement in almost every state for companies with multiple employees.
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More on our top general liability insurance companies
Next
Availability: All 50 U.S. states
Maximum liability limit: $4 million aggregate
Online claims: Yes
A.M. Best financial strength rating: A- (Excellent)
NAIC complaint index: Greater than expected
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biBerk
An online division of Warren Buffet’s Berkshire Hathaway, biBerk was founded in 2015 to simplify the costly process of obtaining small business insurance. BiBerk claims its policies are up to 20% cheaper than its competitors. BiBerk earned an A+ from the Better Business Bureau and was a 2024 winner of the BBB Torch Award for Ethics.
Availability: Available in 27 states
Maximum liability limit: Not stated
Online claims: Yes
A.M. Best financial strength rating: A++ (Superior)
NAIC complaint index: Greater than expected
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Nationwide
Founded in 1926, Columbus, Ohio-based Nationwide boasts a suite of insurance products for business owners. In addition to general liability insurance, it offers commercial auto and property coverage, workers’ compensation, business interruption insurance, cyber liability, errors and omissions, equipment breakdown, business umbrella and builders risk insurance.
Availability: All 50 U.S. states
Maximum liability limit: Not stated
Online claims: Yes
A.M. Best financial strength rating: A- (Excellent)
NAIC complaint index: Greater than expected
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Travelers
The second largest provider of commercial insurance in the U.S, Travelers wrote more than $2.4 billion in direct premiums in 2023. While it doesn’t have an online application, Travelers’ self-service MyTravelers platform allows anyone involved in a claim to track its progress.
Availability: All 50 U.S. states
Maximum liability limit: Not stated
Online claims: Yes
A.M. Best financial strength rating: A++ (Superior)
NAIC complaint index: Greater than expected
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What is general liability insurance?
General liability insurance is a type of business insurance that protects your company against claims of bodily injury, property damage or even libel or slander.
If someone is hurt and your business is held responsible, a policy can cover their medical bills. In the event of a lawsuit, a policy can pay your legal fees and settlement costs so you don’t risk your company’s financial stability.
General liability insurance, sometimes referred to as commercial general liability or business liability insurance, can be purchased as a standalone policy or be bundled with other coverage as part of a Business Owner’s Policy (BOP).
While it’s typically not required by law, you may need to present proof of coverage to suppliers, clients, property managers or other people you do business with.
What does general liability insurance cover?
General liability insurance covers a variety of scenarios:
- Bodily injury: Pays medical bills for someone injured by your business
- Property damage: Pays to repair or replace property damaged by your business
- Advertising injury: Costs relating to copyright infringement
- Reputational harm: Covers liability for libel or slander
- Lawsuits: Pays for a lawyer, legal fees and settlement costs if you’re sued for a reason outlined in your policy
What does general liability insurance not cover?
General liability insurance has limitations. It doesn’t cover the following situations:
- Employee injury or illness
- Business property damage or theft
- Auto liability
- Professional errors
However, these may be covered by worker’s compensation, errors and omissions insurance, commercial auto insurance or related policies.
How much does general liability insurance cost?
Small businesses pay an average of about $500 a year for general liability insurance, according to Insureon, an online marketplace for small business insurance.
But the cost can vary greatly depending on your location, number of employees, industry and years in business.
Comparing several quotes and deciding whether you want a standalone policy or coverage included in a BOP can help ensure you’re getting the best price.
Pros and cons of general liability insurance
Pros
- Protects your assets if you’re sued or have to pay medical bills
- Good for businesses that don’t need a BOP, like freelancers
- May be required by some clients or companies you work with
Cons
- Doesn’t cover employee injuries or professional errors
- Doesn’t pay for damages to your building, inventory or equipment
- May not offer enough coverage if you’re faced with a sizable judgment or lawsuit
How to choose the right general liability insurance
To choose the best company, consider these criteria:
- Premiums: Get three or four quotes from different insurers with the same limits and deductibles.
- Endorsements: Several of our top picks offer riders for liquor liability, employee practices liability and hired and non-owned auto (HNOA) liability.
- Policy limits: General liability insurance policies have a per-occurrence limit and an aggregate limit (the maximum your insurer will pay per policy period). Some smaller insurers have limits that may not be high enough for your needs.
- Claims process: Find out if you can file your claims online and how quickly claims are handled.
- Financial stability: The best general liability policy is useless if your insurer can’t pay out on your claim. Companies with an AM Best financial strength rating of A or better are more likely to be able to meet their obligations.
- Customer service: Can you get in touch with customer service on nights and weekends? Is there an online chat option? Do you prefer to work with an agent in person? Your answers will point you to an insurer that best suits your needs. Check J.D. Power’s Small Commercial Insurance Study, an annual customer satisfaction survey that rates providers on trust, pricing, coverage offerings, ease of use and digital channels, among other factors.
FAQs
What does general liability insurance cover?
General liability insurance can pay the medical bills for someone injured by your business, the cost of repair or replacing any damaged property and costs associated with allegations of libel, slander and copyright infringement. It can also pay your legal bills and settlement if you’re sued for a reason outlined in your policy.
How much general liability insurance do I need?
The amount of general liability coverage you need can vary widely depending on the type and risks of the business, how many employees you have, your location, and the structure of your company.
Does general liability cover theft?
No, general liability insurance does not cover theft of business property.
Am I required to have general liability insurance by law?
General liability insurance typically isn’t covered by law. However, some clients or contractors may require it to work with you.
How do I file a general liability insurance claim?
To file a general liability insurance claim, gather documentation of the incident, including photos and witness testimony. Then contact your insurer online or over the phone .
What’s the difference between general liability insurance and professional liability insurance?
General liability insurance protects businesses from claims of bodily injury, property damage and reputational harm. A professional liability policy, also known as an errors and omissions (E&O) policy, pays for mistakes or negligence in the services your business provides.
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At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every insurance review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of insurance products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.
Our methodology
To find the best general liability insurance companies, CNBC Select collected hundreds of data points on more than a dozen companies offering business insurance.
When selecting the best providers, we considered affordability, availability, the types of coverage offered, the variety of industries insured and customer service.
We reviewed customer satisfaction scores from J.D. Power’s Small Commercial Insurance Study, the National Association of Insurance Commissioners and the Better Business Bureau, as well as financial strength ratings from A.M. Best.
We also considered CNBC Select audience data when available, such as general demographics and engagement with our content and tools.
From there, we sorted our top picks by the best for freelancers, for professionals, for physical locations and for companies with employees.
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Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.
Based in New York, Stephen Freeman is a Senior Editor at Trending Insurance News. Previously he has worked for Forbes and The Huffington Post. Steven is a graduate of Risk Management at the University of New York.