Whether you’re running a cafe, managing a factory, or providing services at client sites, Commercial General Liability (CGL) insurance is a smart and often essential investment. But how much does it actually cost in Malaysia?
There’s no one-size-fits-all price tag. CGL premiums depend on several business-specific factors — and not understanding them can lead to overpaying or being underinsured.
In this guide, we’ll break down:
- Average premium ranges for Malaysian businesses
- Factors that influence pricing
- Sample quotes by industry
- What’s included in your premium
- How to get the best value for your coverage
Average Cost of General Liability Insurance in Malaysia
Based on market averages, here’s a rough breakdown of annual CGL insurance premiums:
Business Size / Type | Estimated Annual Premium Range |
Micro-business (Home-based / Sole Proprietor) | RM800 – RM2,000 |
Small Retail / F&B Outlet | RM1,500 – RM4,000 |
Medium-Sized Service Business | RM3,000 – RM7,000 |
Contractor (mid-risk works) | RM5,000 – RM10,000+ |
Manufacturer (moderate risk) | RM6,000 – RM15,000+ |
Large operations / High-risk | RM10,000 – RM30,000+ |
These figures are estimates based on CGL coverage of RM1 million – RM3 million.
Note: Some industries may also require additional liability extensions (e.g. product liability, tenant legal liability), which can increase your premium.
Related: Commercial General Liability Insurance in Malaysia: Everything You Need to Know
Key Factors That Affect Your CGL Premium
Here are the main elements insurers evaluate when calculating your premium:
1. Nature of Business (Industry Risk)
Your industry significantly affects pricing.
For example:
- A consulting firm carries less risk than a renovation contractor.
- A manufacturer handling chemicals will pay more than a retail florist.
2. Annual Revenue
Higher turnover often means higher exposure to third-party risk, and insurers scale premiums accordingly.
3. Number of Locations / Premises
If you operate from multiple sites (e.g. branches, outlets, factories), your exposure increases — especially if the public has access to these locations.
4. Number of Employees
More employees = more operational activity = higher chances of third-party claims (even though CGL doesn’t cover employee injuries directly).
5. Coverage Limits and Extensions
You can select:
- Coverage limits (e.g. RM1 million, RM3 million, RM5 million)
- Add-ons such as:
- Product liability
- Cross-liability
- Completed operations coverage
- Tenant’s legal liability
More coverage = higher premium.
6. Claims History
If you’ve filed previous claims, your premium may increase, or the insurer may impose stricter underwriting.
7. Risk Management Practices
Businesses that demonstrate strong risk controls (e.g. safety signage, staff training, equipment maintenance) may get better rates or preferential terms.
Sample Cost Breakdown by Industry (Malaysia)
Industry | Annual Turnover | Coverage Limit | Estimated Premium |
Retail Boutique | RM500,000 | RM1 million | RM1,800 |
Coffee Shop | RM750,000 | RM1 million | RM2,300 |
Electrical Contractor | RM1.5 million | RM2 million | RM5,500 |
Food Manufacturer | RM3 million | RM3 million | RM8,000+ |
Logistics Company | RM5 million | RM5 million | RM12,000+ |
These are illustrative examples only. Always get a customised quote.
Learn more: General Liability Insurance Coverage in Malaysia
What’s Included in the Premium?
When you pay for a CGL insurance policy, your premium generally includes:
- Coverage for bodily injury to third parties
- Coverage for damage to third-party property
- Personal and advertising injury coverage (e.g., libel, slander)
- Legal defence costs, court fees, settlements
- Administrative and processing costs
- Agent or broker commission
- Government tax (Stamp Duty & SST)
Hidden Costs to Watch Out For
Some insurers or agents may advertise “low premiums” but include hidden fees like:
- Per-claim excess: You pay the first RM500–RM1,000 of every claim
- Sub-limits: Certain incidents may have lower claim caps than your policy limit
- Coverage exclusions: Read the fine print — standard policies may exclude product-related or overseas liabilities unless added on
Clarify these during the proposal stage to avoid underinsurance.
How to Save on CGL Insurance (Without Compromising Coverage)
1. Bundle with Other Insurance
Many insurers offer discounts when bundling:
- CGL + property insurance
- CGL + fire insurance
- CGL + professional indemnity
2. Adjust Coverage Limits
Opting for RM1 million instead of RM3 million can significantly reduce the cost — but assess whether that’s sufficient for your risk level.
3. Choose an Experienced Broker
A professional broker can help:
- Compare quotes from multiple providers
- Identify unnecessary add-ons
- Ensure no coverage gaps
4. Maintain a Clean Claims Record
Demonstrating low risk can reduce premiums in subsequent renewals.
Recommended: Comprehensive General Liability Insurance Guide
Is the Cheapest CGL Policy Always the Best?
Not necessarily. A cheaper plan may:
- Have more exclusions
- Offer limited legal support
- Exclude high-risk activities or past claims
- Come from insurers with slower claim processing
Remember: The goal of CGL insurance is to protect your business during a crisis. Prioritise reliability, reputation, and clarity over low cost.
External References
For further validation, you may refer to:
These trusted sources offer guidelines and updates on general insurance practices in Malaysia.
Conclusion
Commercial General Liability Insurance is not just a line item on your budget — it’s protection for your people, property, and reputation.
While costs vary based on your business’s risk profile, getting the right coverage is more valuable than just the cheapest coverage.
Need help getting a quote or understanding your risk exposure?
Talk to Us
At Minaris, we help Malaysian business owners make informed insurance decisions. Whether you’re renewing or getting covered for the first time, we’ll ensure you get value — not just paperwork.
👉 Talk to an Expert at Minaris today.
Get protected with a plan that fits your business.
KH Chew is the Founder and Risk Advisor of Minaris, with over 30 years of experience in the insurance industry. He holds a Diploma in Insurance from the Malaysian Insurance Institute (MII), which laid the foundation for his in-depth expertise in property, financial lines, and other general insurance products. He is widely recognized for developing tailored insurance schemes for professionals and businesses across Malaysia. KH is also a passionate advocate for risk management and regularly advises clients and trade associations on comprehensive coverage strategies.