General liability premiums for small businesses have risen by an average of 12 percent over the past year, driven largely by a spike in third-party lawsuits and higher settlement amounts. Service-based industries, including restaurants and contractors, are seeing the steepest increases.
Brokers recommend that business owners review their coverage annually and consider umbrella policies that extend protection beyond standard limits. Bundling general liability with property coverage through a business owner's policy can yield meaningful savings.
Industry groups are lobbying for tort reform measures that would cap non-economic damages and slow the rise in premiums.
