Many business owner’s wonder what goes in to the amount they pay for General Liability Insurance for small business. Frequently business owners compare their costs with fellow business owners or friends and family who run other businesses. Some business owners in certain industries may be shocked to find out how much more they pay than other businesses. Every state and every insurance company determines rates differently for General Liability Insurance. There is not one formal way insurance companies go about creating a formula to determine rates, but there are three main factors that weigh heavily on what you pay for General Liability Coverage: The size, the class code and the loss history of your business.