How CGL pricing is calculated (Canada, excluding Quebec)

Commercial General Liability (CGL) premiums in Canada are underwritten against measurable exposure data. Insurers typically rate by business activity and scale, then adjust for contract terms and loss experience. Summit brokers place CGL with multiple markets to find value and fit. For CGL fundamentals, consult a Summit broker directly for more information about Commercial General Liability.

Primary pricing inputs insurers evaluate:

• Operations and industry class (risk profile of your work and premises)

• Annual revenue and/or payroll (by province/territory; excludes Quebec)

• Location and territory (urban/rural, catastrophe exposure, crime trends)

• U.S. or international sales/components and cross‑border work

• Use of subcontractors and contract controls (hold harmless/indemnity, certificates)

• Limits (per‑occurrence and aggregate), deductibles, and retroactive dates (if any)

• Optional endorsements and requested wording (e.g., additional insured, waiver of subrogation)

• Prior claims and formal safety/risk programs

Note: This page applies to Canadian provinces and territories served by Summit, excluding Quebec.

The $2M CGL anchor most contracts require

Across many Canadian industries, counterparties and landlords commonly ask for a $2,000,000 per‑occurrence CGL limit. Higher limits (e.g., $5M) are driven by venue requirements, U.S. exposure, or heavy foot‑traffic/contract risk; lower limits (e.g., $1M) may be acceptable for low‑hazard micro‑enterprises.

How to think about annual vs. monthly for a $2M policy:

• Annual premium is determined by the underwriter from the inputs above.

• Monthly pay is typically arranged via premium financing, so service/finance charges may apply in addition to the annual premium divided by 12.

• Bundling with other coverages such as Product Liability, Professional Liability (E&O), or Cyber can change the rate basis and total cost.

Mini‑calculator (estimator, non‑binding)

Use this simple scoring model to estimate your premium band for a $2M CGL limit. It is directional only; your actual price requires a formal quote.

Inputs (choose one per row):

Banding logic:

• Add your points. 2–4 = Band A, 5–7 = Band B, 8+ = Band C.

• Relative guidance: Band A (lower), Band B (moderate), Band C (higher) premium for $2M limit.

• Move up one band if you require unusual wording or blanket waivers across many counterparties; move down one band if you maintain audited safety programs and tight contract controls.

To convert annual to monthly, divide by 12 and add any financing/service charges disclosed on your quote.

Industry‑specific pricing levers (tiles)

Link into the details for your sector. Each page explains risks, coverage scope, and cost drivers.

• Construction and contractors: Contractors Insurance — project type, subcontractor management, wrap‑ups, and surety interaction.

• Hospitality and restaurants: Restaurants, Hotel Insurance, Hospitality — liquor/product liability, foot traffic, hours of operation.

• Property management and realty: Property Management, Construction & Realty — premises hazards, tenant mix, certificate volumes.

• Professional services and life sciences: Professional Services, Life Sciences — contract terms, E&O interplay, client concentration.

• Technology and fintech: Fintech — data handling, U.S. contracts, limits required by enterprise customers.

• Manufacturing and product: Manufacturing, Retail & Wholesale — product safety/QC, U.S. exports, installation exposure.

• High‑hazard operations: Snow Removal — slip‑and‑fall frequency, record‑keeping; Energy & Power — site access controls.

• Leisure and camps: Golf Course, Campground & RV Parks — amenities, events, third‑party vendors.

• Regulated or specialty: Cannabis, Agribusiness, Nonprofit.

Provincial taxes and fees on CGL premiums (excluding Quebec)

What appears on your invoice and why:

• Provincial/territorial premium taxes: Levied on insurers; typically embedded in your rate rather than shown as a separate line. Rates vary by jurisdiction.

• Retail sales tax (PST/RST): Some provinces charge RST/PST on certain insurance premiums; when applicable, it appears as a separate line item on your invoice.

• GST/HST: Brokerage service fees (if any) are generally subject to GST/HST; the CGL premium itself is commonly exempt from GST/HST. Your invoice will disclose the tax treatment that applies.

• Financing/service charges: If paying monthly via a premium finance agreement, expect clearly disclosed finance charges in addition to premium and taxes.

Your Summit quote and invoice will itemize all applicable taxes and charges for your province/territory (excluding Quebec).

What a typical CGL quote includes

• Coverage: Bodily injury, property damage, personal/advertising injury, tenants’ legal liability, medical payments.

• Limits/structure: Per‑occurrence and general aggregate; optional products‑completed operations aggregate.

• Standard endorsements: Additional insured (as required by written contract), cross‑liability/severability of interests, contractual liability.

• Optional add‑ons: Waiver of subrogation, primary & non‑contributory wording, higher aggregates, worldwide jurisdiction with suits in Canada/USA.

• Related coverages often packaged or placed alongside CGL: Product Liability, Professional Liability (E&O), Commercial Property, Cyber, Business Interruption.

How Summit helps lower total cost (not just premium)

• Market access: As an independent Canadian brokerage, Summit compares terms across multiple carriers to balance price, coverage, and contract wording.

• Coverage curation: We tailor limits/deductibles and endorsements to contract requirements so you don’t over‑buy or miss required language.

• Risk engineering: Documented safety programs, subcontractor controls, and certificate hygiene can improve pricing tiers over time.

• Claims advocacy: Faster, cleaner claims handling helps maintain favourable loss experience.

• Transparency: See how Summit is compensated by contacting us directly for details on compensation.

To get an exact price for your $2M CGL (outside Quebec), request a tailored quote by contacting the Summit team directly.

Frequently asked questions

Is $2M enough, or should I buy $5M?

Start with contract requirements and your industry’s injury/property damage severity potential. Venue landlords, enterprise customers, or U.S. contracts may require $5M. Summit will model scenarios and quote multiple limits.

What’s the difference between CGL and Professional Liability (E&O)?

CGL addresses third‑party bodily injury and property damage plus personal/advertising injury. E&O covers financial loss arising from professional services. Many firms need both; speak with an insurance professional for more details about Professional Liability.

Do I need Product Liability if I already carry CGL?

If you make, import, distribute, or sell products, you likely need explicit product liability within or alongside CGL.

How do U.S. sales affect my price?

Cross‑border exposure increases severity and defence costs; underwriters may require higher limits, different wording, or separate jurisdiction terms. Expect a pricing impact proportional to your U.S. percentage.

Can I add my clients as additional insureds and include waiver of subrogation?

Yes—common in leases and service contracts. Each endorsement can influence pricing and availability based on wording scope and volume of certificates.

Can I pay monthly?

Usually yes via premium financing. Your quote will disclose finance charges in addition to premium and taxes.

What information do you need to quote?

Operations description, revenue/payroll by province, locations, subcontractor usage, contracts/requirements, prior losses, and desired limits. To start the process, contact Summit or visit their main business insurance page.

How do claims affect future premiums?

Loss frequency/severity are key rating inputs. Strong incident response and corrective actions—plus advocacy from your broker—can help stabilize renewal pricing.