Cost of General Liability Insurance for Tech Companies

April 14, 2018

 
 

The average cost of General Liability Insurance also known as Commercial General Liability or CGL usually ranges anywhere between $425 and $921. While the premiums you end up paying on an annual basis, can be from $480 to $2,700.

The price of the General Liability Insurance policy is contingent upon several factors that include type and size of business.

To give you a better understanding of the price of Commercial General Liability, we will take a look at the average prices for three different kinds of IT businesses, that is,

  • Large IT consulting company that has more than 6 employees
  • Small IT consulting company that has anywhere between 2 – 5 employees
  • IT contractor who works alone and has no employees.

We will use sample quotes, that is, policy cost estimates, that will give you a good idea of what you should expect to pay when getting your own coverage.

If you happen to another industry and not necessarily IT, feel free to get in touch with Compare A Quote for assistance getting the best priced insurance quote for your business.

Before we get into the estimates you should know that commercial general liability insurance covers:

  • Damage caused by your finished products
  • Medical expenses for a person that has suffered injury while on the business premises
  • Damage caused to a third party’s property by you
  • Third-party bodily injuries

IT Contractor Business

An independent contractor is considered to be someone who:

  • Works as an individual
  • Has no employees
  • Has an annual revenue that does not exceed $150,000

The following is what the contractor should expect to pay for their GLC coverage:

  • Median General Liability Insurance – $400
  • Average General Liability insurance – $480

Below is a comprehensive list of the maximum amount of what this policy would be expected to cover:

Medical Expenses$10,000
Damage to Rented Premises$300,000
Finished products coverage$2 million
Personal and Advertising cover$1 million
Total coverage annual aggregate$2 million
Total coverage limit for every occurence$1 million

 

Small IT consulting company

For purposes of this sample quote, we consider a small IT to be one that has not more than 5 employees and whose annual revenue does not exceed $1,000,000.

The small IT consulting company should expect to pay:

  • Median General Liability Insurance – $538/year
  • Average General Liability Insurance – $1,110/year

This policy would cover the following:

Medical Expenses$10,000
Damage to Rented Premises$300,000
Finished products coverage$2 million
Personal and Advertising cover$1 million
Total coverage annual aggregate$2 million
Total coverage for every occurence$1 million

 

Large IT consulting company

A large IT consulting company would be considered one that does not have more than 10 employees and whose annual revenue is between $3 million and $10 million.

  • Median General Liability insurance – $920 a year
  • Average General Liability insurance – $2,750 a year

This cover’s limits would be as follows:

Medical Expenses$10,000
Damage to Rented Premises$300,000
Finished products coverage$2 million
Personal and Advertising cover$1 million
Total coverage annual aggregate$2 million
Total coverage for every occurence$1 million

 

To get the most affordable rates for your General liability insurance, please get in touch with Compare A Quote.

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