General Liability Insurance Cost by Industry

Construction and general contracting carries the highest GL insurance costs of any industry. Workers operate on job sites, handle heavy equipment, and work in or around client-owned structures. A single on-site accident can result in a claim well into six figures. Most contractors also face certificate of insurance requirements from clients and project owners. Per-occurrence limits of $1M or $2M are standard, and umbrella policies are commonly required for larger projects.

Restaurants face significant GL exposure from slip-and-fall incidents on premises, food contamination claims, and liquor liability if they serve alcohol. Premises liability is a major component of restaurant GL premiums because customers are present throughout operations. Liquor liability is often sold as a separate add-on or endorsement and can significantly increase the total cost. High employee turnover in the industry also contributes to higher incident rates.

Retail businesses face premises liability from customer foot traffic and product liability if they sell physical goods that could cause harm. Online-only retail has lower GL costs than brick-and-mortar because there is no customer-facing premises exposure. Stores with high customer volumes, wet floors, or complex inventory are rated higher than low-traffic boutiques. Product liability is particularly important for retailers importing goods from overseas.

Consultants and professional service firms have among the lowest GL insurance costs because their work involves minimal physical risk to clients or third parties. Most work is performed at a desk or in office environments with limited exposure. The main GL risks for consultants are incidental property damage at client sites and general premises liability if they have a physical office. Note that professional advice errors are covered by professional liability (E&O) insurance, not GL.

Technology businesses and software companies tend to have low GL premiums because they have minimal physical exposure. Most tech work is remote or in office environments with controlled access. The more significant insurance concern for tech companies is typically professional liability (E&O) or cyber liability rather than GL. However, tech companies that deploy hardware, visit client data centres, or have physical products should ensure their GL policy includes appropriate coverage for those activities.