Short answer
The right amount depends on your industry, the size of the risks you face, your assets, and any limits your contracts or clients require. Many small businesses start with a common per-occurrence and aggregate limit, then raise it if their work, contracts, or exposure call for more. The dependable answer comes from reviewing your actual risks rather than a generic number.
There is no single correct limit. The goal is enough coverage to handle a realistic worst-case claim without putting your business at risk, which depends on what you do, how much you could be sued for, and what you have to protect. Higher-risk work and larger clients generally call for higher limits.
Contracts often set a floor by requiring a minimum limit before they will hire you. Above that floor, the question is how much exposure you are comfortable carrying yourself. A review of your operations and contracts points to the right number better than a rule of thumb.
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