Introduction
Commercial General Liability (CGL) premiums are quoted before any province‑specific sales tax on insurance. This page explains where provincial RST/PST applies to CGL in Canada, how to estimate after‑tax totals, and provides a worked Ontario invoice example. For coverage details, see Summit’s Canadian CGL overview at Commercial General Liability.
Provinces that add sales tax to CGL premiums
Only four provinces currently levy a provincial sales tax directly on most property & casualty insurance premiums (including business liability): Ontario (8% RST), Saskatchewan (6% PST), Manitoba (7% RST), and Newfoundland & Labrador (15% RST). Rates and scope are set by each province’s statute or tax guidance. Always confirm the portion of a policy that is taxable versus exempt (e.g., certain life/accident policies are commonly exempt).
CGL after‑tax math by province and limit
The table shows how to convert a quoted base CGL premium into an after‑tax amount for the three most common liability limits. “Base × factor” means multiply your quoted premium for that limit by the province’s tax factor.
| Province | $1M limit | $2M limit | $5M limit | Provincial sales tax on insurance | After‑tax factor |
|---|---|---|---|---|---|
| Ontario | Base × 1.08 | Base × 1.08 | Base × 1.08 | RST 8% on taxable insurance premiums | 1.08 |
| Saskatchewan | Base × 1.06 | Base × 1.06 | Base × 1.06 | PST 6% on insurance premiums (effective Aug 1, 2017; continuing) | 1.06 |
| Manitoba | Base × 1.07 | Base × 1.07 | Base × 1.07 | RST 7% on insurance premiums | 1.07 |
| Newfoundland & Labrador | Base × 1.15 | Base × 1.15 | Base × 1.15 | RST 15% on P&C insurance premiums | 1.15 |
Sources: Ontario Ministry of Finance; Government of Saskatchewan; Manitoba statute (Retail Sales Tax Act amendments); Newfoundland & Labrador Revenue Administration Act s.91.1.
Notes:
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The factors above apply to the taxable portion of the premium only; some coverages or fees may be exempt or subject to different treatment under provincial rules.
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Provinces not listed do not currently levy a separate provincial sales tax on most business insurance premiums; your after‑tax premium equals your base premium (other embedded insurer taxes may still influence the quoted base). Confirm with your broker for any special cases.
Worked example: Ontario invoice math
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Quoted base CGL premium (any limit): $450.00
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Ontario RST at 8% on taxable premium: $36.00
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Total annual premium payable in Ontario: $486.00
Ontario’s official RST guidance confirms the 8% rate on taxable insurance premiums.
Additional context (Ontario)
- Ontario Bill 118 (Occupiers’ Liability Amendment Act, 2020) introduced a 60‑day written notice requirement for claims arising from injury caused by snow or ice against occupiers and their snow/ice contractors. In force for incidents on/after January 29, 2021. This change affects liability claim handling and documentation expectations for many premises and snow operations.
FAQs
How much is CGL in Ontario?
Pricing varies by industry class, operations, revenue/payroll, claims history, deductibles, and selected limit. To convert a quote to your final amount in Ontario, multiply the taxable portion by 1.08 to add 8% RST (e.g., $450 → $486).
How much is CGL in Manitoba?
Market rates vary by risk; to estimate your total in Manitoba, apply 7% RST to the taxable portion of the quoted premium (Base × 1.07).
How much is CGL in Saskatchewan?
Premium depends on your risk profile; to estimate the total in Saskatchewan, apply 6% PST to the taxable portion (Base × 1.06).
How much is CGL in Newfoundland & Labrador?
Premiums vary by exposure; to estimate the total in NL, apply 15% RST to the taxable portion (Base × 1.15).
Need a precise number for your business? Summit is an independent Canadian brokerage that shops multiple insurers to curate value and coverage. Start at Commercial General Liability or contact us via the site’s quote or meeting links.