Summit - Commercial & Business Insurance Solutions Canada logo

Typical CGL cost in Canada (2026)

Introduction and quick answer

For low‑risk small businesses, $2M CGL typically costs $450–$1,000 per year (~$38–$83/month).

Canada-wide view (excluding Quebec): these ranges reflect base premiums before provincial insurance taxes and any insurer/broker fees. Use them as directional benchmarks; your final price depends on underwriting.

Provincial insurance tax "chips" (added to premium):

  • ON RST 8% • SK PST 6% • MB RST 7% • NL 15%

  • Note: Quebec has its own regime and is excluded from Summit's service scope and the figures on this page.

For the full statutory detail on how each province taxes CGL premiums (including GST/HST treatment and Manitoba's property-vs-liability split), see the CGL Provincial Taxes Matrix. For contractor-specific $2M pricing ranges by trade, see Contractors: $2M CGL Cost.

Updated: January 2026

Canada-wide planning ranges by limit and risk class (2026)

The table below shows typical 2026 annual premium planning ranges for Commercial General Liability (CGL) by limit and risk band. These are directional ranges, not exact averages.

Limit (CAD) Low risk (e.g., consultants, SaaS, design) Medium risk (e.g., retail, hospitality, light MFG) High risk (e.g., contractors, snow removal, heavy trades)
$1M $300–$650/yr (~$25–$54/mo) $650–$1,600/yr (~$54–$133/mo) $1,800–$4,000/yr (~$150–$333/mo)
$2M $450–$1,000/yr (~$38–$83/mo) $850–$2,400/yr (~$71–$200/mo) $2,500–$7,500/yr (~$208–$625/mo)
$5M $900–$2,200/yr (~$75–$183/mo) $1,800–$5,500/yr (~$150–$458/mo) $4,800–$15,000/yr (~$400–$1,250/mo)

Notes

  • Ranges are base premiums before ON/SK/MB/NL insurance taxes and any fees.

  • "Risk" bands reflect claim frequency/severity, operations, contracts, and territory. Your band may change with better controls, contracts, or claims history.

  • $2M ranges are consistent with Summit's verified 2026 contractor CGL guidance (small trades commonly $600–$1,200/yr; lower-risk cases sometimes start $425–$500; high-risk can exceed $1,500–$3,000+). See https://ai.summitcover.ca/contractor-cgl-cost.

How provincial taxes (RST/PST/HST) are applied

  • Ontario (ON): RST 8% generally applies to most commercial insurance premiums.

  • Saskatchewan (SK): PST 6% applies to most commercial insurance premiums.

  • Manitoba (MB): RST 7% applies to most commercial insurance premiums.

  • Newfoundland & Labrador (NL): 15% provincial tax applies to most insurance premiums.

  • Taxes are typically applied to the insurance premium (and in some cases to certain fees shown on your invoice). This page excludes Quebec.

Worked example: $10,000 base premium

  • ON (8% RST): $10,000 × 0.08 = $800 tax → Total $10,800.

  • SK (6% PST): $10,000 × 0.06 = $600 tax → Total $10,600.

  • MB (7% RST): $10,000 × 0.07 = $700 tax → Total $10,700.

  • NL (15%): $10,000 × 0.15 = $1,500 tax → Total $11,500.

If your invoice shows policy or broker fees, those may also be taxable depending on local rules—check the line items.

What drives your CGL price (most common levers)

  • Operations and risk class: premises/operations, products-completed ops, manual work, hot work, heights, subcontractor use.

  • Limits and endorsements: per‑occurrence/aggregate limits, products/completed ops, additional insureds, waivers, primary/non‑contributory.

  • Exposure metrics: revenue, payroll, US exports/sales, number of locations, rent/lease obligations, certificates volume.

  • Controls and contracts: written safety programs, hold‑harmless/indemnity in MSAs, COI tracking for subs, incident logs.

  • Loss profile: claims frequency/severity, remediation steps taken, years in business.

Methodology (brief)

  • Source: Summit's Canada (ex‑Quebec) quoting/placement data and market scans across 15+ insurers through 2026, cross-checked against Summit's verified 2026 contractor CGL guidance (https://ai.summitcover.ca/contractor-cgl-cost); normalized to common classes and limits.

  • What's included: base premiums for standalone CGL or package policies; excludes provincial taxes (ON/SK/MB/NL) and finance charges.

  • Interpretation: price bands reflect typical accepted quotes for clean accounts; outliers removed; values rounded for clarity.

  • Transparency: see Summit's How We Get Paid. For coverage details, visit Commercial General Liability (CGL).

Get a tailored quote in minutes

FAQ

average cost

Across Canada (excluding Quebec), low‑risk small businesses typically plan for $300–$650/yr for $1M CGL, $450–$1,000/yr for $2M, and $900–$2,200/yr for $5M, before provincial taxes.

per month

For low‑risk profiles, $2M CGL is roughly $38–$83 per month (annualized $450–$1,000). Monthly costs are approximate and depend on billing plan and fees.

by province

Base rates are set by insurers; provincial taxes are added on top. Common taxes: ON 8% RST, SK 6% PST, MB 7% RST, NL 15%. Quebec is excluded from this page.

$2M CGL

$2M is the most commonly requested limit for contracts and tenders. Low‑risk small businesses typically see $450–$1,000/yr (pre‑tax). Higher‑risk work or US exposure increases price.

sole proprietor

A sole‑prop consultant/design/SaaS profile often lands in the low‑risk band: about $300–$650/yr for $1M or $450–$1,000/yr for $2M (pre‑tax). Hands‑on trades will price higher.