The short answer
A certificate must reflect insurance that is actually in place. A same-day result may be possible for a straightforward request, but carrier approval, endorsements and your operations determine timing. The $250–$1,200 annual figures for smaller software companies below are illustrative budgets, not quotes. Send the whole requirement before buying a policy to satisfy it.
Use this guide to prepare questions, not to establish coverage. Any unsourced costs, limits or timing ranges are illustrative planning examples, not quotes, verified market averages or carrier commitments.
What a $1M/$2M general liability requirement means
$1M/$2M means $1 million per incident and $2 million per policy year. Contracts usually list a few more limits in the same block. For what each coverage part includes, see general liability coverage for startups.
| Contract line | What it means | Standard startup policy |
|---|---|---|
| Each occurrence $1M | Most paid per incident | $1M |
| General aggregate $2M | Most paid per policy year | $2M |
| Products-completed operations $2M | Cap for claims from finished work | $2M |
| Personal and advertising injury $1M | Libel, slander, ad copyright | $1M |
| Damage to rented premises | Fire damage to space you rent | $100K to $300K |
| Per-project aggregate (CG 25 03) | A new cap for each job | Rare for software; ask to strike it |
Can you get a general liability certificate the same day?
Sometimes. First confirm that suitable coverage is in place or can be approved in time, that the required endorsements exist, and that the certificate can accurately describe them. Software-only operations and standard wording may make a request simpler, but do not guarantee a same-day outcome.
| Your situation | What needs to happen |
|---|---|
| Software company, new GL with blanket endorsements | Carrier approval, binding confirmation and wording review |
| Existing GL, certificate only | Verify the requested information against current coverage |
| Customer must be named on the policy | Confirm whether a scheduled endorsement is required |
| On-site installs, hardware or events | Review operations and any exclusions with the carrier |
| Contract also needs Tech E&O or cyber | Arrange and verify the other required policies |
Send the exhibit and the actual deadline as early as possible. We will confirm what is feasible; there is no guaranteed cutoff for same-day service.
What else the insurance exhibit usually requires
A same-day GL certificate only clears procurement if GL is the only gap. Check the exhibit for these lines.
| Line | Example requirement | Check before relying on it |
|---|---|---|
| Hired and non-owned auto | $1M | Availability and how it fits the underlying program |
| Workers’ comp | Statutory, plus stated employer’s liability limits | Applicable state requirements and employees’ work locations |
| Umbrella | $2M to $5M | Underlying policy requirements and carrier approval |
| Tech E&O and cyber | $1M to $5M each | Underwriting, wording and any excess layers |
Why procurement rejects general liability certificates
Some rejections involve paperwork; others reflect a genuine coverage gap. Check the policy before changing the certificate.
| Rejection | Fix |
|---|---|
| Insured name doesn’t match the contracting entity | Use the exact legal name |
| Holder name or address is wrong | Copy the holder block word for word |
| Additional insured box checked, no endorsement attached | Attach the endorsement page |
| Aggregate shown as $1M | Buy the standard $2M |
| Policy ends within 30 days of contract start | Attach the renewal binder |
| Carrier rated below A- VII | Use a carrier that meets it |
Wording problems inside the endorsements are covered in what vendor onboarding endorsements mean and how to add them.
What underwriters ask before quoting startup general liability
Have these ready to reduce follow-up questions:
- Legal entity name, FEIN and mailing address
- What your product does, in one sentence
- Revenue for the last 12 months and the next 12
- Headcount, and the states employees work in
- Any on-site work, hardware or events
- Prior claims, and the effective date you need
How much $1M/$2M general liability costs a startup
| Example company | Illustrative annual budget |
|---|---|
| 2-person pre-revenue SaaS, remote | $250 to $600 |
| 10-person seed SaaS, small office | $500 to $1,200 |
| 35-person Series A, leased office | $1,500 to $3,000 |
| Software plus on-site installs | $1,800 to $4,800 |
Illustrative annual budgeting ranges, not quotes or measured placement averages. Actual pricing requires underwriting; taxes and fees may be additional. Full programs by stage: startup insurance cost by funding stage.
Who can get you general liability by your deadline
A straightforward risk may be eligible for a quick online process. A named endorsement, rating requirement or several policies due together may need more review. Neither a platform nor a broker can promise carrier approval before underwriting. See our coverage and placement guide.
Get a contract check
Send us the insurance exhibit, your legal entity name and your deadline. We provide an initial written review within one business day after receiving the necessary information, with questions and next steps. Carrier quotes, coverage decisions and policy changes may take longer. Get a free contract check.
A few more answers
Frequently asked questions
Is $1M/$2M general liability enough for a Fortune 500 contract?
For the general liability line, usually yes; it is the standard ask. Large customers often add a $2M to $5M umbrella and Tech E&O and cyber at $1M to $5M, so read the whole exhibit before you buy.
What does general liability typically cost a seed-stage SaaS company per year?
The illustrative example uses $500–$1,200 annually for a small office-based software company. That is not a measured market average or quote. Eligibility, taxes, fees and timing require a company-specific review.
Does a two-person SaaS company with no office need general liability?
A customer contract or lease may require it, and the business can still have liability exposures without an office. Review the operations and obligations. The $250–$600 example is a hypothetical budget, not an offer.
Will procurement accept a binder instead of a certificate of insurance?
Some will, for a few days. A binder is temporary proof that coverage is in force. Many vendor portals accept only an ACORD 25 certificate, so ask first.
Does general liability cover a bug that costs my customer money?
No. That is a Tech E&O claim. General liability covers bodily injury, property damage and advertising injury.
Does a businessowners policy count as general liability?
Yes. A businessowners policy (BOP) bundles GL with property coverage, and its liability limits show as general liability on the certificate.
What does "A- VII" mean in an insurance requirement?
It refers to an AM Best financial-strength rating and financial-size category. Verify the actual underwriting insurer and its current rating against the contract; a brand or platform name is not enough.
General information, not a coverage determination or legal advice. Unless a specific source is identified, prices and timing ranges are illustrative planning examples—not measured market averages, quotes or guarantees. Policy wording, carrier, state and your company’s operations determine what applies.