General liability insurance is essential for protecting your business from costly lawsuits involving bodily injury, property damage, or personal/advertising injury. But that protection doesn’t have to come with a hefty price tag.
Here are 11 smart and actionable ways to lower your general liability insurance premiums in 2025—without sacrificing coverage.
1. Maintain a Clean Claims History
Insurance companies reward low-risk businesses. The fewer claims you’ve filed, the lower your perceived risk—and the lower your premiums.
Implement strong risk management protocols:
Train employees on safety procedures
Regularly inspect your workspace
Address hazards immediately
👉 Tip: A single claim can raise your rates for years. Prevention is always cheaper.
2. Classify Your Employees Accurately
Misclassifying employees is a common cause of inflated premiums. Be sure to:
Use the correct industry classification codes
Update payroll records regularly
Remove former employees from your policy
🔗 Read more on employee classifications and premiums
3. Bundle Coverage with a Business Owner’s Policy (BOP)
A Business Owner’s Policy combines general liability and property coverage—often at a discount.
If you’re a small to mid-sized business, a BOP could reduce your overall insurance costs while offering essential protections.
👉 Explore if a BOP is right for your business
4. Increase Your Deductible
Choosing a higher deductible can significantly lower your monthly or annual premium. Just be sure your business can comfortably cover the deductible in the event of a claim.
5. Improve Workplace Safety
A safe business is a cheaper business to insure.
Install cameras, fire suppression systems, and burglar alarms. Use clear signage, proper lighting, and maintain clean walkways. OSHA compliance isn’t just about regulation—it saves you money.
6. Limit Your Business Risk Exposure
If you’ve recently dropped a high-risk service or changed the nature of your work, notify your agent. You could be paying based on outdated risk profiles.
📌 Example: If you stopped offering construction services but still pay construction-level premiums, you’re overpaying.
7. Work With an Independent Insurance Agency
Independent agents (like us at THAgency) have access to nearly 100 top-rated insurance carriers—which means we shop around to find the best coverage at the lowest possible rate.
💡 Unlike captive agents, we work for you, not the insurance companies.
8. Pay Your Premium Annually
Many carriers offer a discount if you pay your premium in full, rather than monthly. This also helps you avoid installment fees and late charges.
9. Monitor Your Credit Score
Yes, your business (and in some states, your personal) credit score can impact your insurance premium. Good credit signals reliability to insurers.
📈 Pay bills on time, reduce outstanding debt, and monitor your credit reports for errors.
10. Review Your Policy Annually
Don’t let your policy auto-renew without reviewing it. Your business evolves, and so should your coverage. Check for:
11. Let THAgency Help You Lower Your Rates
At Toby Hansen Agency, we work with nearly 100 insurance carriers to compare coverages and find you the best value for the best protection. Whether you’re just starting or you’ve been in business for decades, we can help lower your general liability premiums without cutting corners.
👉 Contact us today to review your current policy or get a no-obligation quote in minutes.
