25 General Liability Insurance Statistics Every Business Owner Should Know
How big the general liability market is, what slip-and-fall and product claims cost, how fast tort costs and nuclear verdicts are climbing, and why small firms pay the most, in 25 cited statistics for U.S. businesses.
Every business that opens its doors to customers, ships a product, or works on someone else’s property carries the risk of a third-party injury or damage claim. Commercial general liability insurance is the policy that pays to defend and settle those claims, and the data behind it has shifted sharply in the past decade. This report gathers 25 cited statistics on the size of the liability market, the slip-and-fall and product injuries that drive claims, the cost of the U.S. tort system, and the large verdicts pushing premiums higher. Every figure comes from a regulator, a government agency, an industry research body, or an insurer’s own published claims data.
Key Takeaways
- Liability is the coverage small firms carry most - 91% of small employers reported carrying liability insurance in 2024, more than any other type of coverage.
- The market is large and still growing - other liability (occurrence) policies brought in $83.6 billion in direct premiums in 2024, up 10.3%.
- Slip-and-fall claims are getting pricier - the average slip, fall, and customer-injury claim rose from $20,000 to $45,000 between 2015 and 2025.
- The tort system is enormous - U.S. tort costs reached $529 billion in 2022, equal to 2.1% of GDP.
- The smallest firms pay the most per dollar - businesses under $1 million in revenue face $35.56 in tort costs per $1,000 of revenue, more than seven times the rate of the largest companies.
- Social inflation keeps pushing claims up - litigation trends raised U.S. liability claims by 57% in a decade, peaking at 7% in 2023.
How big the general liability market is
1. Other liability policies wrote $83.6 billion in premiums in 2024
General liability is reported to regulators under the “other liability” line, and the occurrence-based version of that line generated $83.6 billion in direct premiums written in 2024, a 10.3% jump from 2023. The NAIC attributes the double-digit growth in most commercial liability lines to pressure from social inflation. Occurrence policies cover injuries that happen during the policy period, no matter when the claim is filed, which is why most small business general liability is written this way.
2. Claims-made and package liability add another $62 billion
Occurrence policies are not the whole picture. Claims-made other liability, which includes many professional and management liability policies, wrote $40.4 billion in 2024, roughly flat from the prior year. The liability portion of commercial multiple peril policies, the line where package policies such as a business owners policy are reported, added $21.6 billion, up 5.0%. Together these lines show how much of the commercial market is built around third-party liability.
3. Nine in 10 small employers carry liability insurance
Among small employer firms surveyed by the Federal Reserve Banks in late 2024, liability coverage was the most common policy type, carried by 91% of firms. That category includes general, professional, malpractice, and product liability. It outranked workers’ compensation and property coverage, which tells you how central third-party risk is to the way owners think about protection. Landlords, clients, and lenders also frequently require proof of liability coverage before signing a contract.
4. Cost is the top insurance complaint, cited by 70% of firms
Carrying coverage and liking the price are two different things. In the same Federal Reserve survey, 70% of insured firms named cost, including high premiums and deductibles, as an insurance-related challenge, and 29% said policies were too complicated or confusing. Rising liability premiums are a direct result of the claim trends later in this report. For owners, the practical response is comparing carriers and understanding exactly what each policy covers.
5. Insurers were short $10 billion on past liability claims in 2024
Reserve shortfalls show how much claims are outrunning expectations. Prior-year reserves in the other liability (occurrence) line were deficient by $10.0 billion in 2024, compared with a $4.7 billion deficiency the year before, according to the NAIC. The line’s pure loss ratio worsened by about 6.8 points to 67.0%. Regulators tie the deterioration largely to social inflation, where large verdicts make existing reserves inadequate and pressure future pricing.
Slips, falls, and customer injuries
6. Slip-and-fall claims doubled as a share of small business claims
Customer injuries are now one of the most common claims a small business files. Slip, fall, and customer-injury claims made up 20% of claims in The Hartford’s 2025 analysis of more than 1 million small business property and liability policies, up from 10% in its 2015 study. That moved the category from fifth to third place. The insurer attributes part of the increase to litigation trends and legal system abuse.
7. The average slip-and-fall claim more than doubled to $45,000
The same claims data show severity rising alongside frequency. The average slip, fall, and customer-injury claim reached $45,000 in 2025, up from $20,000 in 2015, making it the third costliest small business claim. A single fall in a store aisle or on an icy walkway can now consume a meaningful share of a small firm’s annual profit. This is the core exposure a general liability policy is designed to absorb.
8. Falls killed 48,308 Americans in 2024
Falls are one of the leading causes of injury death in the country. There were 48,308 unintentional fall deaths in 2024, a rate of 14.2 per 100,000 people, compared with 41,241 motor vehicle traffic deaths the same year. Not every fall happens on business property, but stores, restaurants, offices, and job sites are common settings. When a customer is hurt on your premises, the medical bills and any lawsuit typically land on your liability policy.
9. Stairs and floors cause more than 3 million ER visits a year
Product-safety data pinpoint where people get hurt. Injuries involving stairs, ramps, landings, and floors, largely from slips and falls, accounted for more than 3.0 million ER visits and over 7.7 million medically attended injuries per year, or about 20% of the totals, in the CPSC’s April 2026 report. These are the exact surfaces every storefront, lobby, and walkway contains. Mats, lighting, handrails, and prompt spill cleanup are inexpensive ways to cut that exposure.
10. One in four older adults falls each year
Customers over 65 face the highest fall risk. More than 14 million older adults, about one in four, report falling every year, and the age-adjusted fall death rate for that group rose 21% from 64.7 per 100,000 in 2018 to 78.4 in 2024. Businesses that serve older customers, such as pharmacies, grocers, medical offices, and restaurants, carry a heavier premises exposure as the population ages, since the CDC identifies falls as the leading cause of injury for adults 65 and older.
Product liability
11. 38.8 million people were treated for product-related injuries in 2024
Product liability exposure extends to anyone who makes, distributes, or sells goods. An estimated 38,826,000 people sought medical attention for an injury related to a consumer product in 2024, an increase of more than 2.1 million, or 7.6%, from 2023. The CPSC notes these injuries are related to products, not necessarily caused by them. Even so, every injury is a potential claim against a manufacturer or retailer, which is why products-completed operations coverage sits inside most general liability policies.
12. Product incidents cost the nation more than $1 trillion a year
The economic scale of product risk is enormous. Deaths, injuries, and property damage from consumer product incidents cost the nation more than $1 trillion annually, according to the CPSC’s 2026 statement. Only a fraction of that becomes a lawsuit, but the potential is large enough that retailers and distributors routinely require their suppliers to carry product liability limits and name them as additional insureds.
13. Falls account for over 70% of product-related deaths
Falls show up again in product data. Falls contributed to more than 70% of the estimated 59,900 consumer product-related deaths in 2023, or about 41,960 deaths, with older adults making up the largest share. Ladders, flooring, furniture, and stairs all fall within this category. For manufacturers and sellers of these products, clear warnings and documented safety testing are part of a defensible liability position.
14. The median product liability nuclear verdict hit $36 million
Product cases are producing the fastest-growing large verdicts. The median product liability nuclear verdict, a jury award of $10 million or more, rose to $36 million in 2022 from $24 million in 2013, a 50% increase. Product liability was also the most common nuclear verdict type, at 23.3% of cases over the decade. An award at that level can exceed a small business policy’s limits many times over.
15. Legal system abuse added up to $4.8 billion to product liability losses
A joint actuarial study by Triple-I and the Casualty Actuarial Society found that inflation beyond normal economic trends added $4.6 to $4.8 billion to product liability (occurrence) losses and defense costs over the 2015 to 2024 period. That equals 27.1% to 28.0% of the line’s losses. In plain terms, more than a quarter of product liability claim costs reflect litigation dynamics rather than the injuries themselves.
What the U.S. tort system costs
16. U.S. tort costs reached $529 billion in 2022
The tort system is the legal machinery behind every liability claim. Costs and compensation paid through it reached $529 billion in 2022, equal to 2.1% of U.S. GDP, according to a study by The Brattle Group for the U.S. Chamber Institute for Legal Reform. Tort costs grew 7.1% a year from 2016 to 2022, faster than inflation, and the study projects they will near $1 trillion by 2030 if that pace continues.
17. Commercial liability costs are growing 8.7% a year
Businesses bear most of the burden, and their share is growing fastest. Commercial liability tort costs climbed from $222 billion in 2016 to $367 billion in 2022, an average annual increase of 8.7%, while personal liability grew 3.9% a year. General and professional liability alone rose 8.8% annually to $291 billion. That gap explains why commercial liability premiums have climbed faster than most personal lines.
Data
| 2016 | $222B |
|---|---|
| 2017 | $220B |
| 2018 | $247B |
| 2019 | $264B |
| 2020 | $290B |
| 2021 | $324B |
| 2022 | $367B |
18. $146 billion in business liability is self-insured
Not every business liability is covered by an insurance policy. Of the $291.3 billion in general and professional liability tort costs in 2022, $146 billion came from self-insured exposures, which the study says shows that many businesses choose not to purchase insurance. Large companies can self-insure deliberately, but for a small firm, an uninsured liability claim is paid directly out of operating cash or the owner’s assets.
19. Small businesses bear 48% of commercial tort costs
The burden is lopsided. Businesses with $10 million or less in revenue earned just 20% of commercial revenue in 2021 but bore 48% of commercial tort costs, about $160 billion, according to the Institute for Legal Reform. The same study found commercial liability costs rose 19% in a single year, from $291 billion in 2020 to $347 billion in 2021. Small firms have less leverage to negotiate claims and fewer resources to fight them.
20. The smallest firms pay $35.56 in tort costs per $1,000 of revenue
Measured against revenue, the gap is stark. Businesses with under $1 million in annual revenue incurred $35.56 in tort costs for every $1,000 of revenue in 2021, compared with $4.75 for companies above $50 million. That makes the tort system more than seven times as expensive for the smallest businesses. It is the clearest case for small firms to transfer liability risk to an insurer rather than carry it themselves.
Nuclear verdicts and social inflation
21. Premises liability produced 14.3% of nuclear verdicts
A review of 1,288 nuclear verdicts in personal injury and wrongful death cases from 2013 to 2022 found premises liability accounted for 14.3% of them, behind product liability (23.3%), auto accidents (23.2%), and medical liability (20.3%). The median premises liability nuclear verdict was $20.0 million. Premises claims cover everything from falls on a property to inadequate security, the same exposures a general liability policy addresses.
- Product liability 23%
- Auto accident 23%
- Medical liability 20%
- Premises liability 14%
- Other negligence 10%
- Intentional tort and other 9%
22. Social inflation raised U.S. liability claims 57% in a decade
Swiss Re Institute built an index to separate litigation-driven claim growth from ordinary economic inflation. It found social inflation increased U.S. liability claims by 57% in a decade, primarily because of a rising number of large court verdicts, and reached an annual peak of 7% in 2023. Social inflation is now the main growth driver of liability claims, which means premiums can keep rising even when general inflation cools.
23. U.S. commercial casualty losses hit $143 billion in 2023
The dollar totals are now larger than global catastrophe losses. U.S. commercial casualty insurance losses grew an average of 11% a year over five years to $143 billion in 2023, surpassing the $108 billion in insured losses from natural catastrophes worldwide that year. U.S. liability lines exposed to bodily injury claims also recorded $43 billion in cumulative underwriting losses over five years, which helps explain why capacity has tightened.
24. Excess inflation added up to $103 billion to general liability losses
The Triple-I and Casualty Actuarial Society study found inflation beyond economic trends added $83.4 to $103.3 billion to other liability (occurrence) losses and defense costs from 2015 to 2024, or 27.4% to 34.0% of booked losses. Average claim severity in the line rose 6.8% a year over that span, more than double the 3.2% rise in consumer prices. Fewer claims, but far more expensive ones, is the defining pattern.
25. Six in 10 Americans link attorney ads to more lawsuits
Public attitudes help explain the claim trends. In a July 2026 survey of more than 2,000 U.S. adults by the Insurance Research Council, six in 10 respondents said attorney advertising increases the number of liability claims and lawsuits, and more than nine in 10 had seen or heard attorney advertising in the past year. Widespread advertising lowers the barrier to filing a claim, which feeds the frequency and severity pressures on business liability coverage.
How to protect your business from liability claims
The data point to a few practical moves that lower both the odds and the cost of a liability claim:
- Start with general liability, often inside a package. A standalone general liability policy or a business owners policy covers third-party injury and property damage, the claim type behind 20% of small business claims in The Hartford’s data.
- Size your limits to today’s verdicts. With premises verdicts carrying a $20.0 million median in the nuclear tier, consider umbrella coverage that sits above your primary policy.
- Fix the surfaces where people fall. Stairs and floors drive more than 3 million ER visits a year, so lighting, handrails, mats, and spill procedures pay for themselves.
- Compare carriers before you renew. Pricing and appetite differ widely, so review our carrier comparison and compare quotes for your industry and location.
- Check how we source data. Our methodology page explains how every figure here was verified.
Frequently Asked Questions
How common are slip-and-fall claims for small businesses?
Very common. Slip, fall, and customer-injury claims made up 20% of claims in The Hartford’s 2025 small business analysis, double their 2015 share, and the average claim reached $45,000. They are among the most frequent claims a general liability policy pays.
Why are general liability premiums going up?
Claims are growing faster than inflation. Social inflation raised U.S. liability claims by 57% in a decade, and insurers were short $10.0 billion on prior-year other liability reserves in 2024. Both trends feed directly into renewal pricing.
Do small businesses really face higher lawsuit costs than large companies?
Yes, relative to their size. Firms under $1 million in revenue paid $35.56 in tort costs per $1,000 of revenue in 2021, versus $4.75 for companies over $50 million. Small businesses bore 48% of commercial tort costs while earning 20% of revenue.
What is a nuclear verdict?
A nuclear verdict is a jury award of $10 million or more. The Institute for Legal Reform analyzed 1,288 of them from 2013 to 2022 and found premises liability made up 14.3%, with a median award of $20.0 million. Verdicts that size far exceed typical small business policy limits, which is why many owners add an umbrella layer.
How many small businesses carry general liability insurance?
Most employer firms do. 91% of small employers reported carrying liability insurance in the Federal Reserve’s 2024 survey, the most common coverage type. Even so, 70% of insured firms cited cost as a challenge, so comparing quotes on general liability insurance is worth the time.