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California General Liability Insurance Cost: 2023 Average Prices


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General liability insurance is an insurance policy designed to cover the most common claims a business can expect. It typically covers basic bodily injury a customer may incur while patronizing your business. Most California businesses will require a general liability policy in order to operate. Before you go ahead and buy yourself a policy, we’re here to dissect the different pricing you may face during your shopping experience. In this guide we discuss the average cost of liability insurance in California.

How Much Does Business Liability Insurance Cost In California?

We found liability insurance costs on average $2,131 per year or $178 per month. That is an average however across multiple business of varying sizes. Just because general liability policies are standard to have doesn’t mean that every California business will pay the same price. Different factors will affect coverage costs, like city size and population. Businesses in San Francisco or Los Angeles will pay more than ones in Vernon or Amador.

Average Cost Of General Liability Insurance By Industry

Industry is another big factor in determining the cost of your business insurance. Some industries are simply more dangerous than others and lead to a higher likelihood of injury. Even amongst the nine most common small businesses in California, there is a lot of variation in pricing. Let’s go over the 9 most common California small business industries and the average general liability insurance cost as examples.

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Small Business TypeAverage Liability Insurance CostLiability Cost Per Month
Beauty Salon$707$59
Grocery Store Owner$1,008$84
Janitorial Services$1,012$84
Gas Station Owner$1,017$85
Veterinarian's Office$1,397$116
Funeral Home$1,623$135
Convenience Store$3,338$278

An important thing to remember is that liability insurance is meant to cover injuries that can happen to your customers. So industries where a customer is in more danger will result in a higher cost. Workers compensation insurance is meant to cover you if any of your employees get hurt. Not every industry will necessarily have expensive workers comp and general liability.

Cost Of Business Liability Insurance By Total Revenue 

The total revenue of a business will also affect the cost of their business’ general liability insurance policy. That may seem odd, but actually makes sense. The more your company earns, the more it is liable for. If someone were to get seriously injured on your premises, they could theoretically came after all of your assets. As a result the bigger your business, the more coverage you tend to buy, thus the average cost goes up. Let’s go over the general liability costs for those businesses for revenue of $50,000, $250,000, and $750,000 to see the difference.

IndustryRevenue for $50,000Revenue for $250,000Revenue for $750,000
Gas Station Owner$559$979$1,513
Grocery Store Owner$550$962$1,512
Janitorial Services$552$966$1,518
Beauty Salon$386$675$1,061
Funeral Home$605$1,058$1,663
Convenience Store$1,852$3,241$5,093
Veterinarian's Office$440$770$1,210
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Average Yearly Cost of Liability Insurance Based on Annual Revenue

Cost Of Business Liability Insurance By Number Of Employees 

We found the total number of employees you have to not have a great affect on the total price you pay for general liability insurance. The number of employees you have will ultimately affect your workers compensation insurance the most. The more employees you have, the more likely one of them will have an accident, thus the higher rates. That logic does not necessarily carry over to customers, thus the lower price affect.

Where To Buy Liability Insurance In California

As we’ve demonstrated, general liability insurance generally costs about $2,131 per year, but that can change a lot depending on your industry and unique situation. Each business will have a cost that reflects the individual risk they present. We recommend shopping around until you find the best insurance for your situation. An insurance marketplace like CoverWallet can help you find the best price for your business.

General Liability Insurance vs Professional Liability Insurance vs Product Liability Insurance

When shopping for liability insurance it is important to remember the key differences between other types of business insurance. As we’ve already discussed, general liability covers damages that arise due to negligence on the part of the individual, company, or business usually on your place of business. We’ve already discussed the difference with workers compensation insurance above. Some businesses, such as consultants or financial advisors, may require additional types of liability coverage.

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 Product liability is another common type of liability insurance. Product liability protects the company, manufacturer, or seller from any claims that arise due to the negligence of using their products. For example if your business manufactured a dog harness, and those harnesses were defunct and led to injuries, you could be sued for negligence. Product liability insurance will cover expenses incurred by your cases.

There is also professional liability coverage which provides coverage to individuals who are employed in a professional capacity by a company. Professional liability insurance is generally purchased by those who own medical practices, law firms, consultancies or marketing firms.

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