Best General Liability Insurance For Small Businesses

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.)

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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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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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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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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Launched in 2017, Next Insurance is a relative newcomer to the business insurance space, but it has liability insurance options for more than 1,300 professions. Coverage may not be available for businesses with more than two claims in the past three years or with annual revenue above $5 million.

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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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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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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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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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.

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

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.

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.

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.

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.

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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