Commercial Liability Insurance costs can vary widely, and, unlike personal lines insurance (like homeowners’ insurance), commercial business insurance is unique according to each business’ exposure. Pricing depends on many factors, including:
The industry
The limits of coverage required
Limits can range from $1,000,000 or $2,000,000 to many millions of dollars and may depend, among other things, on exposure, legislative requirements and contractual requirements
The size of the commercial enterprise
The geographic area where the business operates
The cost of general liability insurance can range from a few hundred dollars for small business operations with limited exposure to many thousands of dollars for large enterprises. This cost needs to be balanced against the potential cost of a lawsuit, which typically may be $10,000 – $25,000* and does not include potential settlements or awards. Few small or medium business owners have a reserve fund in case someone decides to sue and even larger corporations can suffer serious financial setbacks by an expensive lawsuit.