How do I determine how much Liability Insurance I need?


We're starting a small business that will provide services locally. How do I determine what type of and how much Liability Insurance I need?

Insurance Liability

asked Jan 29 '11 at 07:52
157 points

2 Answers


Talk to other similar (successful) businesses in your area and find out how much they carry. Talk to your attorney and ask what they recommend. Check with your local county/city/state and find out what is required as a minimum.

Between those three you should be able to home in on a good estimate.

answered Jan 29 '11 at 08:30
Russell Steen
380 points
  • Also, an insurance broker can help you shop against multiple insurers and they have exp. with this type of question. – Michael Pryor 12 years ago
  • Brokers are good for getting the best price, but usually still have a financial incentive to sell you more than you really need (note: usually). If you can find a broker for a flat fee who doesn't take commission from the other end, then yeah, that would also be useful. – Russell Steen 12 years ago


If you're talking GL, most are 1m/2m (occurrence, aggregate). If you're leasing office space, they'll likely have their own requirements.

I just went through this exercise and had a really good experience with

answered Jan 30 '11 at 16:19
1,149 points

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