Canadian contractor CGL pricing: 2025 snapshot

Most small Canadian contractors can expect to pay roughly $450–$1,800 per year for a $2M Commercial General Liability (CGL) policy in 2025, with higher‑risk trades (e.g., roofing, demolition) often ranging $2,000–$3,500+ per year. These ranges are drawn from Canadian broker benchmarks and public rate summaries, including starts‑at pricing from major online brokerages. See sources at the end for details and context.

Price bands and typical limits (Canada, 2025)

Interpret the bands below as indicative market ranges for $2M CGL limits on a 12‑month policy for small contractors. Actual quotes vary by trade, location, payroll/revenue, claims history, subcontractor use, and contract requirements.

• Low‑risk trade (painter, handyman): generally near the low end of the market; many quotes start between $450 and $700 per year for $2M CGL.

• Moderate‑risk trade (electrician, plumber): commonly $700–$1,500 per year for $2M CGL, depending on scope and prior losses.

• Small general contractor (1–3 employees): frequently $850–$1,800 per year for $2M CGL.

• Renovation contractor (residential focus): starts around $450 per year for $2M CGL.

• High‑risk trade (roofer, demo): often $2,000–$3,500+ per year for $2M CGL; variance reflects risk controls, height/hot work, and claims.

2025 contractor CGL ranges: annual and monthly equivalents

Notes

• Figures reflect $2M CGL policy limits and exclude taxes/fees. Starting points corroborated by Canadian broker sources.

• Some Canadian broker references show entry‑level pricing from $425–$499 in select regions and trades.

Example invoices (illustrative; before taxes/fees)

These examples demonstrate how a CGL‑only policy might price for common contractor profiles. Amounts are illustrative, derived within the bands above. Actual quotes depend on your specifics.

• Example 1 — Painter (sole proprietor)

• Coverage: CGL limit $2,000,000

• Term: 12 months

• Estimated annual premium: $540

• 12‑pay option (equal installments): $45/month

• Basis: Starts‑at pricing cited by Canadian brokers for small contractors.

• Example 2 — Small General Contractor (2 employees)

• Coverage: CGL limit $2,000,000

• Term: 12 months

• Estimated annual premium: $1,250

• 12‑pay option (equal installments): $104/month

• Basis: Mid‑band example consistent with average/starting points.

• Example 3 — Roofer (high‑risk)

• Coverage: CGL limit $2,000,000

• Term: 12 months

• Estimated annual premium: $2,900

• 12‑pay option (equal installments): $242/month

• Basis: High‑risk bracket consistent with Canadian guidance for higher‑exposure trades.

What drives contractor CGL cost in Canada

• Trade risk profile and operations (height work, hot work, demo/excavation, structural work)

• Revenue and payroll (exposure base), number of employees, subcontractor usage

• Claims history and risk controls (training, site safety, certificates of insurance)

• Required limits/endorsements in contracts (e.g., additional insureds, waivers of subrogation)

• Territory and jobsite mix (e.g., dense urban vs. rural, crime/weather patterns)

• Bundled coverages (tools & equipment, property, cyber, etc.) For coverage fundamentals and underwriting factors, consult a Canadian insurance advisor or broker for an overview.

Limits and upgrades: pricing context

• $1M vs. $2M: Moving from $1M to $2M generally does not double the premium; the increment is often modest relative to the extra protection.

• Higher limits (e.g., $3M or $5M) are available when contracts demand it; Canadian brokers cite typical step‑ups such as ~$1,100 for ~$3M and ~$1,350 for ~$5M in some contractor programs (illustrative examples).

• Adding coverages (e.g., tools & equipment, builder’s risk) affects total spend; ask your broker about Builder’s Risk and Commercial Property options.

How Summit quotes contractors

• Independent market access: no exclusive ties; Summit shops multiple Canadian carriers for value and fit.

• Dedicated account management and rapid response, from quote to certificates and claims support.

• Sector depth across construction trades, realty, and related industries.

Methodology and sources

• Canadian broker benchmarks for contractors indicate entry‑level $2M CGL pricing commonly starting between $425 and $540 per year, with averages near ~$850 and higher brackets for riskier trades.

• Cross‑industry Canadian context for $2M limits and trade‑risk impacts is available through industry sources.

• For coverage details and Summit’s approach, consult directly with Summit representatives.

Disclaimer: Ranges are informational, not binding quotes. Actual eligibility, limits, terms, and premiums are determined by insurers’ underwriting and your disclosures. Summit serves Canadian businesses; availability varies by province and insurer.