General liability insurance calculator
Filed under Bonds & insurance
General liability is rated on exposure — receipts and payroll — multiplied by a rate that follows what you actually build. This shows how far the class of work moves the number, and what buying higher limits costs.
Pre-filled with a mid-sized remodeling contractor. Change the class of work first — it moves the number more than anything else here.
Annual premium estimate
- Class
- General remodeling
- Rated exposure
- $1,010,000
- Rate band
- 1.0% – 2.2%
- Limit factor
- ×1
- Claims load
- ×1.0
A band, not a quote. Carriers rate on filed rates for your specific class code, territory and loss history; two quotes on the same business routinely differ by more than this band's width. If you license an LLC in California, remember the statutory floor is a cumulative $1,000,000 rising to $5,000,000 — a limit below that cannot satisfy the board whatever it costs.
§ 1What this estimates
The annual premium for a commercial general liability policy, as a band. It does not estimate whether your policy will respond to a given claim — that is a wording question, and the exclusions are in our general liability guide.
§ 2How to use it
- § 1Set the class of work to what you actually do most. Understating it produces a cheaper number here and an argument at claim time.
- § 2Enter receipts and payroll. Include subcontracted labour — carriers do.
- § 3Choose the limits your contracts demand, not the smallest ones available.
§ 3Worked example
Two contractors, same receipts, same payroll, different trades. The class of work is doing almost all of the work in that difference — which is why an accurate class code is the most valuable line on the application.
| Class | Rate band | On $1,010,000 of exposure |
|---|---|---|
| Interior finish | 0.6% – 1.4% | $6,060 – $14,140 |
| General remodeling | 1.0% – 2.2% | $10,100 – $22,220 |
| Mechanical / plumbing / electrical | 1.2% – 2.6% | $12,120 – $26,260 |
| Framing, concrete, structural | 2.0% – 4.5% | $20,200 – $45,450 |
| Roofing and exterior at height | 3.5% – 8.0% | $35,350 – $80,800 |
§ 4State notes
California is the state where a limit is not purely a commercial decision. A licensed LLC must carry a cumulative limit of at least $1,000,000, increasing $100,000 per additional person of record up to $5,000,000, under B&P Code § 7071.19 — and since 2014-01-01 the policy must be written by an admitted carrier or an eligible surplus line insurer.
Before you compare quotes, check whether each one is written on an occurrence or a claims-made basis; occurrence vs claims-made explains why it matters.
Checked against
- CSLB — Limited Liability Company (LLC) licensesread 2026-10-18
Not legal advice. Fees, bond amounts and deadlines are set by statute and change without notice — confirm with the board that issues your license before you file.