Best General Liability Insurance for Small Businesses in 2025

Choosing the best general liability insurance for small business in 2025 can be the difference between costly setbacks and peace of mind as you grow your business. With legal risks, customer injuries, and property damage all real possibilities for entrepreneurs, securing the right protection means you’re investing in your future.

In this guide, you’ll discover the top providers in 2025, what sets them apart, and how to find affordable general liability insurance tailored to your needs. Our selections are based on financial strength, coverage options, pricing transparency, claims satisfaction, and customer feedback, so you can confidently make the best decision.

How We Chose the Best General Liability Insurance for Small Business

Key criteria for evaluation

To identify the best general liability insurance for small businesses, we focused on:

• Financial stability (AM Best or similar ratings)
• Comprehensive small business insurance coverage options
• Competitive and transparent general liability insurance cost 2025
• Flexible policy management (digital tools, endorsements)
• Customer service and ease of claims

Expert and customer review sources

We consulted:

• NAIC complaint index and customer satisfaction data
• Expert insurers’ reviews by Forbes, NerdWallet, and US News
• Real-world small business owner testimonials

Quick Comparison Table of Top General Liability Insurance Providers for Small Businesses

Provider	Best For	AM Best Rating	Avg. Cost (Annual)	Digital Access
Chubb	Comprehensive Coverage	A++	$600–$2,400	Yes
Next Insurance	Online Experience	A-	$300–$900	Yes
Nationwide	Bundled Policies	A+	$500–$1,500	Yes
Thimble	Short-Term Coverage	A	$19+/mo	Yes
Hiscox	Freelancers/Specialists	A	$350–$1,000	Yes
State Farm	Local Agent Service	A++	$450–$1,500	Partial

Best General Liability Insurance Companies in 2025

Chubb

Chubb stands out as a market leader for comprehensive commercial liability insurance for small business owners who demand robust protection. Their customizable policies allow coverage for a wide range of industries and risks, including difficult-to-insure sectors.

Key Features:

• High coverage limits
• Customizable add-ons for cyber liability, employment practices, and more
• Dedicated small business team
• A++ financial strength
• Extensive global network

Best For: Established businesses needing advanced risk management or those with unique exposures like manufacturing or tech startups.

Drawbacks:

• Customization may increase general liability insurance cost 2025
• Quotes often require speaking with an agent, less convenient for online shoppers

“Chubb’s claims process is consistently rated as smooth and prompt by business owners.”

Next Insurance

Next Insurance specializes in affordable general liability insurance for startups, contractors, and small service businesses. Their 100% digital experience and instant COI downloads set them apart.

Key Features:

• Fast online quotes and instant coverage
• Monthly or annual flexible payment options
• Easy certificate of insurance (COI) access
• Custom policies for 1,300+ professions

Best For: Microbusinesses, freelancers, and contractors who value convenience and affordability.

Drawbacks:

• May lack specialized endorsements for certain complex industries
• No brick-and-mortar support

“Next Insurance offers strong digital tools, making it perfect for modern entrepreneurs.”

Nationwide

Nationwide is well-known for bundling small business insurance coverage like property, auto, and general liability—all in one place. Their strong reputation and broad agent network benefit business owners with growing needs.

Key Features:

• Multi-policy discounts
• Large, trusted agent network for advice
• 24/7 claims support
• Risk management consultation

Best For: Businesses seeking to manage multiple policies together for family-run shops, retailers, and manufacturers.

Drawbacks:

• Online quote process is limited in some states
• Slightly higher base costs for some industries

Thimble

Thimble pioneers flexible, on-demand commercial liability insurance for small business owners who don’t need all-day, every-day coverage. Policies can be purchased by the hour, day, or month.

Key Features:

• Ultra-flexible coverage periods
• App-based policy management
• Instant COI generation
• Targeted towards freelancers, event hosts, and seasonal businesses

Best For: Event planners, gig economy workers, or businesses with fluctuating risk periods.

Drawbacks:

• Limited to general liability and some professional liability lines
• Not suited for complex, permanent operations

Hiscox

Hiscox is renowned for insuring solopreneurs, consultants, and small professional businesses. The company offers industry-tailored general liability policies at affordable rates.

Key Features:

• Low minimum premiums
• Specialized coverage for over 180 professions
• Global reach, strong claims expertise
• User-friendly online quote and policy tools

Best For: Consultants, IT professionals, creative agencies, and designers with highly specific risks.

Drawbacks:

• Coverage may be limited for high-risk or multi-location operations
• Some coverage not available in Alaska

State Farm

State Farm’s vast local agent network goes beyond quoting: they work with you to customize small business insurance coverage for your specific situation, with a focus on general liability.

Key Features:

• Personalized customer service
• Strong agent network in all 50 states
• Well-established claims support
• Industry-specific coverage options

Best For: Local businesses who prefer face-to-face, relationship-driven service, such as restaurants and retail shops.

Drawbacks:

• Limited online account management
• Quotes and applications generally handled through agents, not web-based

State Farm’s community reputation earns it long-term customer loyalty among small business owners.

How General Liability Insurance Works for Small Businesses

General liability insurance for small business acts as a financial buffer when unexpected incidents occur—think slip-and-fall accidents, third-party property damage, or advertising injury claims. If a claim is made against your business, your insurer will investigate and pay covered costs (up to your policy limits), including legal fees, medical payments, and settlements. This coverage is essential, especially for owners who interact regularly with clients, vendors, or the public.

What General Liability Insurance Does and Doesn’t Cover

Covered risks and scenarios

General liability insurance typically covers:

• Bodily injury to non-employees
• Third-party property damage
• Legal defense costs
• Advertising and reputational harm claims

Common exclusions

However, the same policy will not cover:

• Employee injuries (covered by workers’ comp)
• Professional errors or omissions
• Intentional wrongdoing
• Damage to your own property

“Always read your policy! Exclusions are industry-standard but can catch business owners off guard.”

Do You Need General Liability Insurance for Your Small Business?

Legal requirements and industry needs

You’re not always legally required to hold general liability insurance, but many property leases, vendor contracts, and local regulations make it a must. Certain industries—construction, cleaning services, and event planning—often cannot operate without proof of coverage.

LLC and contractor considerations

LLCs enjoy some legal protection, but general liability insurance for small business is still crucial. Contractors, in particular, are often contractually required to carry coverage to win jobs or access worksites. For more on other essential business insurance needs, see our guide to types of small business insurance policies.

General Liability Insurance Costs and Policy Limits

Average costs for small businesses

Most small businesses pay between $400 and $1,300 per year for affordable general liability insurance, though some can pay less with micro-policies or pay-as-you-go options.

Factors affecting price

Key price factors include:

• Industry risk
• Business size and revenue
• Location
• Coverage limits and deductibles
• Claims history

Understanding policy limits and deductibles

A standard policy may offer $1 million per occurrence/$2 million aggregate in coverage, with options to increase limits for an added premium. Most plans have no deductible, but adding one can lower your general liability insurance cost 2025.

How to Choose the Best General Liability Insurance Provider

Evaluating coverage options

Start by:

• Assessing your biggest business risks and legal obligations
• Comparing available endorsements (e.g., cyber or employment practices)
• Reading sample policy documents

Finding the best fit for your business type

Digital-first providers may work well for tech startups or freelancers, while established agencies offer advantages to more complex businesses. Make sure your provider is responsive and clear—quick claims and clear communication are essential for peace of mind. For more detailed advice, see our article on how to choose business insurance.

FAQs About General Liability Insurance for Small Businesses

Is general liability insurance tax deductible?

Generally, yes. Premiums paid for commercial liability insurance for small business are considered a business expense and may be deducted from your taxable income.

Does it cover theft or professional mistakes?

No. General liability does not cover theft (that’s for property insurance) or professional errors (covered by professional liability insurance).

What is a certificate of insurance?

A certificate of insurance (COI) is a document proving you have active coverage—often required by clients, landlords, or events before work can begin.

Can high-risk businesses get coverage?

Yes—but expect to pay a higher general liability insurance cost 2025. Some providers may decline coverage; others specialize in high-risk industry solutions.

Conclusion: Our Top Picks and Final Recommendations

When choosing the best general liability insurance for small business, consider your unique risks, industry needs, and budget. For broad, high-limit coverage, Chubb is an excellent pick; for startups and freelancers wanting affordable general liability insurance and seamless digital management, Next Insurance leads the way. Thimble’s flexibility is unmatched for short-term needs, while State Farm remains ideal for personal local support. Compare quotes, review fine print, and secure your small business insurance coverage confidently.

Ready to protect your business? Get personalized quotes from several providers or use our business insurance cost calculator to find the right fit today!