By SIA Group | 🕒 4 min read | Published July 14th, 2025
As we move into the second half of 2025, the general liability insurance market is showing continued signs of stabilization. After years of hardening conditions driven by increasing claim severity and rising litigation costs, many policyholders are now seeing modest rate increases and healthy underwriting capacity.
But while the overall market is leveling, emerging risks and evolving exposures are shaping new coverage challenges. Understanding these trends is critical for protecting your business against gaps in liability insurance.
General Liability Rate Trends
According to industry data, the average premium increase in Q4 2024 was 5.3%. The first half of 2025 has followed a similar path, with rate hikes hovering just above 4%.
- Stable Rates: Most policyholders with solid risk management practices are experiencing manageable, single-digit increases.
- Elevated Risk Sectors: Businesses in higher-risk industries such as construction, hospitality, retail, and real estate—or those with poor loss histories—are still facing higher rate hikes and possible coverage restrictions.
Key Cost Drivers in 2025
Even with rate moderation, several key factors continue to drive liability insurance costs:
1. Social Inflation & Litigation Trends
The U.S. remains a highly litigious environment, and social inflation is significantly impacting claims.
- Increased Lawsuits: More frequent and aggressive legal action from plaintiffs’ attorneys.
- Third-Party Litigation Funding (TPLF): Outside investors are funding lawsuits, driving up settlement demands.
- Nuclear Verdicts: Legal judgments exceeding $10 million are becoming more common, putting pressure on carriers and insureds alike.
2. PFAS Liability Exclusions
Polyfluoroalkyl substances (PFAS), commonly used in industrial and consumer products, are under intense regulatory and legal scrutiny.
- Insurers are increasingly excluding PFAS-related losses from general liability coverage.
- Industries like manufacturing, food packaging, and construction are particularly exposed.
3. Biometric Data Regulations
States are enacting new laws governing the collection and storage of biometric data—such as fingerprints and facial recognition—used in workplace systems.
- Many policies currently lack clarity on whether biometric-related claims are covered.
- Lawsuits over alleged misuse or unauthorized sharing of biometric data are rising, prompting insurers to consider new exclusions.
4. Active Shooter Liability
The growing number of active shooter incidents is creating complex liability issues for employers and property owners.
- General liability policies often exclude coverage for intentional acts and emotional trauma.
- Some insureds are turning to specialized endorsements or standalone active shooter policies for better protection.
What Businesses Should Expect
Here’s what policyholders can anticipate for the remainder of 2025:
- Rate Stabilization: Continued moderation in rate increases for most insureds.
- Healthy Capacity: Most insurers are maintaining available coverage options, though underwriting scrutiny remains high.
- Coverage Exclusions: Be vigilant—expect more exclusions related to PFAS, biometric data, and violent events.
How to Protect Your Business
To stay ahead of the market:
- Review your general liability policy thoroughly, especially exclusions.
- Partner with experienced risk advisors who understand your industry and exposures.
- Consider supplemental coverage where exclusions apply, such as pollution, cyber, or workplace violence policies.
Final Thoughts
The 2025 general liability insurance outlook brings opportunities for businesses to lock in more favorable pricing—but also underscores the importance of staying informed about emerging risks. At SIA Group, we help clients navigate these shifts with tailored risk management and coverage strategies.
Need help reviewing your general liability coverage?
Contact SIA Group today to schedule a policy review or explore specialized insurance solutions for your business.
👉 Visit our For Your Business page
📞 Or speak with one of our risk advisors today.
Read more of our content here: SIA Group | Learning Center

Protection Beyond Insurance