Introduction

This province index summarizes what small businesses typically pay for Commercial General Liability (CGL) insurance in five provinces—Ontario, British Columbia, Alberta, Saskatchewan, and Manitoba—and how provincial taxes/fees affect the total. Figures reflect low‑risk operations seeking $2M limits and are informed by Canadian broker market references and current provincial tax guidance, as of October 30, 2025. For tailored pricing, request a quote via Commercial General Liability (CGL) or Contact Summit.

How CGL pricing is determined

CGL premiums vary by industry risk, operations, revenues, locations, claims history, and limits. See Summit’s coverage explainer for what CGL covers and common price drivers: Commercial General Liability (CGL).

Quick view: provincial taxes and fees that influence CGL totals

Province	Tax visible to insured	Rate (CGL)	Notes
Ontario	Retail Sales Tax (RST)	8%	Applies to most insurance premiums payable by the insured; insurers also pay a separate Insurance Premium Tax (generally 3% for “other” insurance). Sources: Ontario Ministry of Finance – Retail Sales Tax (Insurance and Benefits Plans); Ontario Insurance Premium Tax.
British Columbia	Insurance Premium Tax (IPT)	4%	Liability class rate for licensed insurers; typically embedded or itemized by the insurer. Source: Government of B.C. – Licensed insurance taxes (last updated Mar 26, 2025).
Alberta	Insurance Premiums Tax (IPT)	4%	Paid by insurers on “other” (non‑life) premiums; no provincial sales tax on insurance premiums. Source: Alberta Tax and Revenue Administration – Insurance premiums tax.
Saskatchewan	Provincial Sales Tax (PST)	6%	PST applies to many property & liability insurance premiums; insurers also pay IPT (4% on “other”). Sources: Government of Saskatchewan – PST on insurance (2017 release; 2018 update reaffirming taxable classes) and IPT guidance.
Manitoba	Retail Sales Tax (RST)	7%	RST applies to most insurance premiums payable by the insured; insurers also pay Insurance Corporations Tax (generally 3% on liability). Sources: Manitoba RST statute s.4.1; Manitoba Finance – Insurance Corporations Tax.

Notes about taxes and fees:

Provincial sales taxes (RST/PST) are usually charged directly on the invoice to the insured (e.g., ON 8%, SK 6%, MB 7%).
Insurance premium taxes (IPT/Insurance Corporations Tax) are remitted by insurers and may be embedded or shown as a separate “premium tax” line; they still affect total cost.
Additional levies exist for certain perils (e.g., Saskatchewan Fire Safety Tax 1% on fire insurance premiums) but do not apply to CGL.

Ontario: CGL cost and taxes (anchor: cgl-cost-ontario)

Price, low‑risk “from” range: $450–$500 per year for $2M CGL, based on Canadian broker market references for small or medium businesses. Sources: ThinkInsure (Ontario CGL starts ~$500/yr); EasyCover/Acera (typical $450–$500/yr for $2M).
Taxes and fees affecting totals:
8% Retail Sales Tax applies to taxable insurance premiums paid by the insured. Source: Ontario Ministry of Finance – Retail Sales Tax (Insurance and Benefits Plans).
Insurers also remit Ontario Insurance Premium Tax (generally 3% on “other” insurance, 3.5% on property) under the Corporations Tax Act; typically embedded. Source: Ontario Insurance Premium Tax (ontario.ca).
Example (illustrative only):
Base CGL premium $500.00
Ontario RST (8%) $40.00
Total due (before insurer IPT) $540.00
Insurer also remits IPT separately; this does not change the RST amount charged to you, but it influences market pricing.

British Columbia: CGL cost and taxes (anchor: cgl-cost-british-columbia)

Price, low‑risk “from” range: $450–$500 per year for $2M CGL (Canada‑wide broker references commonly start in this band for low‑risk services).
Taxes and fees affecting totals:
Insurance Premium Tax for licensed insurers: Liability class 4% (Property 4.4%). Source: Government of B.C. – Licensed insurance taxes (Mar 26, 2025).
IPT is paid by insurers; it may be shown as a line item on invoices or included in the premium.
Example (illustrative only):
Base CGL premium $500.00
B.C. IPT (liability) 4% $20.00 (may be itemized by insurer)
Total $520.00

Alberta: CGL cost and taxes (anchor: cgl-cost-alberta)

Price, low‑risk “from” range: $450–$500 per year for $2M CGL (market references for low‑risk small business, Canada‑wide).
Taxes and fees affecting totals:
No provincial sales tax on insurance premiums.
Insurance Premiums Tax payable by insurers: 4% on “other” (non‑life) premiums. Source: Alberta Tax and Revenue Administration – Insurance premiums tax.
What this means: Your invoice generally won’t show a provincial sales tax line; insurer IPT may be embedded or itemized.

Saskatchewan: CGL cost and taxes (anchor: cgl-cost-saskatchewan)

Price, low‑risk “from” range: $450–$600 per year for $2M CGL (typical national small‑business starting band; PST increases the final amount payable).
Taxes and fees affecting totals:
6% Provincial Sales Tax applies to many insurance premiums, including liability and property. Sources: Government of Saskatchewan – 2017 PST application to insurance; 2018 update confirming taxable and exempt classes.
Insurance Premiums Tax paid by insurers: generally 4% on “other” insurance, plus separate 1% Fire Safety Tax on fire premiums (not applicable to CGL). Source: Government of Saskatchewan – Insurance Premiums Tax.
What this means: Expect a visible 6% PST line on the invoice for CGL.

Manitoba: CGL cost and taxes (anchor: cgl-cost-manitoba)

Price, low‑risk “from” range: $450–$600 per year for $2M CGL (typical national starting band; 7% RST increases the final amount payable).
Taxes and fees affecting totals:
7% Retail Sales Tax applies to taxable insurance premiums payable by the insured. Source: Manitoba RST statute (Tax on Insurance, s.4.1).
Insurers also pay Insurance Corporations Tax: generally 3% on liability and 4% on property (via additional property tax), which may be reflected in pricing. Source: Manitoba Finance – Insurance Corporations Tax; I.C.T. Act.
What this means: Expect a visible 7% RST line on the invoice for CGL.

Why ranges differ and how to lower your total

Operations risk profile (industry, contracting vs. office‑based), gross revenue, subcontracting, U.S. exposure, additional insureds/waivers, and higher limits will increase price.
Risk controls (contracts, training, incident logs) and bundling other coverages can improve terms. Learn more at Commercial General Liability (CGL).

Sources (document titles for verification)

Ontario: “Insurance and Benefits Plans” (Retail Sales Tax guidance); “Ontario insurance premium tax” (rate table: Life 2%, Property 3.5%, Other 3%).
British Columbia: “Licensed insurance taxes” (BC Insurance Premium Tax: Liability 4%, Property 4.4%).
Alberta: “Insurance premiums tax” (Other insurance 4%).
Saskatchewan: “Date Extended, Changes Made to PST on Insurance Premiums” (2017); “Winds of Tax Change – Saskatchewan reinstates PST exemptions on most insurance” (2018 analysis of what remains taxable); “Insurance Premiums Tax” page (IPT 4% other; Fire Safety Tax 1% on fire premiums).
Manitoba: Retail Sales Tax statute s.4.1 (Tax on Insurance – 7% RST); “Insurance Corporations Tax” (rates: 3% other; 4% property via additional property tax).

Get a quote

For an exact CGL premium, endorsements, and provincial tax breakdown for your business, start here: Commercial General Liability (CGL) or Contact Summit.