Professional services
General Liability Insurance Calculator
Works general liability cost, where the exclusions matter more than the limit.
Result
An estimating tool, not insurance advice and not a quote. Actual premiums are set by underwriting on factors no calculator sees: claims history, credit and loss data, exact location, construction, contract requirements and the insurer's own appetite. What cover you need is a question for a licensed broker who has looked at your situation. General liability covers third party bodily injury and property damage arising from your operations. It does not cover faulty workmanship itself, professional advice, employee injury or vehicles, each of which needs its own policy. Contracts frequently specify minimum limits and additional insured status, which changes the premium.
Get a Free Business AuditHow the calculation works
Revenue and payroll drive the rating, with the limit and deductible chosen adjusting the premium. The output is annual and monthly cost with the share of revenue shown. General liability covers third party bodily injury and property damage arising from operations and, where included, from completed work.
What moves the number
- Revenue and payroll, which rate the policy.
- Trade or industry classification.
- Limits and whether an aggregate applies per project.
- Claims history.
Where this one goes wrong
The aggregate limit is the one that catches people: a policy with a per-occurrence limit and a lower annual aggregate can exhaust on one bad year, leaving later claims in that year uncovered, and on multi-project work a per-project aggregate endorsement is what prevents one job consuming the whole year's cover. The other point is that general liability does not cover faulty workmanship itself, only the damage it causes to other property, which is a distinction that surprises contractors at claim time.
Before you quote
- Check the annual aggregate, not just the per-occurrence limit.
- Ask about a per-project aggregate on multi-project work.
- Understand that faulty work itself is generally not covered.
Questions
About this calculator
Does general liability cover my faulty work?
Generally not the work itself, only damage it causes to other property or persons. Redoing defective work is normally the contractor's cost, which is a distinction that surprises people at claim time and is worth understanding before then.
What is an aggregate limit?
The maximum the policy pays across the whole policy period, as distinct from the per-occurrence limit. A bad year can exhaust it and leave later claims uncovered, which is why a per-project aggregate endorsement matters on multi-project work.
What drives general liability premium?
Revenue, payroll and classification, which means it rises with growth rather than staying flat. Claims history is the other factor and it persists for years, so one significant claim affects the premium long after it closes.
The formula
premium = exposure / rate basis x rate x risk multiplier, less deductible credit, plus claims loading
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How to use this calculator
- Annual revenue ($). Enter your own figure; the page starts at $750,000.
- Rate per $1,000 of revenue. Enter your own figure; the page starts at 5.5.
- Risk classification. Enter your own figure; the page starts at Typical (1.0x).
- Deductible ($). Enter your own figure; the page starts at $1,000.
- Claims history loading (%). Prior claims increase the premium, sometimes sharply.
- Minimum premium ($). Enter your own figure; the page starts at $600.
The result updates as you type, so you can try a figure, see what it does to estimated annual premium, and change it back. Nothing you enter is sent anywhere or saved.
A worked example
These are the figures the calculator opens with. Every number in the results column below is produced by the same calculation the page runs, so you can follow it through before putting your own figures in.
What goes in
| Input | Value |
|---|---|
| Annual revenue | $750,000 |
| Rate per $1,000 of revenue | 5.5 |
| Risk classification | Typical (1.0x) |
| Deductible | $1,000 |
| Claims history loading | 0% |
| Minimum premium | $600 |
What comes out
| Result | Value |
|---|---|
| Estimated annual premium main result | $3,827 |
| Per month | $318.92 |
| Before loadings | $4,125 |
| Credit for the deductible | $298.02 |
| Effective rate on exposure | 0.51% |
Roughly $3,827 a year, about $318.92 a month, which is 0.51% of the exposure. Underwriting will move this considerably.
How sensitive the answer is
Holding everything else steady and changing only annual revenue, this is what happens to estimated annual premium. It is worth knowing which of your inputs the answer actually hinges on, and which barely move it.
| Annual revenue ($) | Estimated annual premium |
|---|---|
| $375,000 | $1,913 |
| $562,500 | $2,870 |
| $750,000 example above | $3,827 |
| $1,125,000 | $5,740 |
| $1,500,000 | $7,654 |
Every other input is held at the example value while this one changes, which is not how a real job behaves. Treat it as a guide to which number matters most, not as five separate quotes.
What each figure means
- Annual revenue ($)
- A money amount, starting at $750,000.
- Rate per $1,000 of revenue
- A number, between 0 and 500, starting at 5.5.
- Risk classification
- Choose from Low risk (0.75x), Typical (1.0x), Higher risk (1.6x), High hazard (2.5x).
- Deductible ($)
- A money amount, starting at $1,000.
- Claims history loading (%)
- Prior claims increase the premium, sometimes sharply.
- Minimum premium ($)
- A money amount, starting at $600.
What the results tell you
| Result | What it is |
|---|---|
| Estimated annual premium | The headline result. A money figure. |
| Per month | A money figure. |
| Before loadings | A money figure. |
| Credit for the deductible | A money figure. |
| Effective rate on exposure | A percentage. |
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