2025 $2M CGL price snapshot — Ontario

As of October 2025, typical low‑risk small businesses in Ontario see $2M Commercial General Liability (CGL) premiums in the ~$450–$650 per year range (~$38–$55 per month). Mid‑ to high‑risk sectors price higher based on exposure, revenue, staff count, and claims history.

Quick pricing table by limit (Ontario)

Limit	Indicative annual (low‑risk small business)	Indicative monthly	Notes
$1M	$360–$600	$30–$50	Derived from national GL ranges commonly quoted for low‑risk classes; Ontario skews slightly higher than some provinces.
$2M	$450–$650	$38–$55	Ontario small/medium low‑risk businesses commonly land here; some policies price above $1,000 depending on risk.
$5M	~$950–$2,150 (base $2M CGL + umbrella/excess +$500–$1,500)	~$79–$179	Higher limits typically achieved by adding umbrella/excess over a $2M CGL. Increment depends on class and underlying limits.

Notes:

Ranges assume clean loss history, low‑hazard operations, and standard deductibles. Always confirm with a broker for your class of business and contracts.
“Monthly” shows simple annual/12 for budgeting; actual insurer payment plans may include financing charges.

What drives CGL cost in Ontario

Industry hazard and operations: on‑premise customer exposure, heavy equipment, subcontracted work, products exposure.
Annual and projected revenue; payroll and headcount.
Location factors and required additional insureds/waivers (e.g., landlord or contract terms) increasing limits or endorsements.
Selected limits (per‑occurrence/aggregate), deductibles, and inclusion of extensions (non‑owned auto, tenants legal liability, etc.).
Prior claims and years in business.

For coverage fundamentals and examples by industry, see Summit’s guide to Commercial General Liability and Business Insurance.

Provincial taxes and fees (Ontario)

8% Retail Sales Tax (RST) applies to premiums on taxable insurance contracts in Ontario. Insurance is generally exempt from HST/GST; the 8% RST is separate and not an input‑tax‑credit. If a vendor does not charge RST, purchasers may need to self‑assess.
Ontario also levies an Insurance Premium Tax (generally paid by insurers) of 3.5% on property and 3% on other specified classes. If a policy is placed with an unlicensed insurer, the insured may be responsible to remit premium tax. Confirm with your broker and accountant.

How Ontario businesses reach $5M limits

Many contracts/tenants specify $5M liability. The most cost‑efficient path is usually a $2M primary CGL plus umbrella/excess to achieve total $5M. Typical small‑business umbrella additions run ~$500–$1,500/year for $1M–$5M extra, with risk‑based variation.

Practical quoting checklist (Ontario)

Have these ready to speed accurate pricing:

Legal entity details, years in operation, and clear description of operations and locations.
Gross revenue (prior year and forecast), payroll, and headcount by role/trade.
Subcontracting practices and certificates; contract and landlord insurance clauses.
Five‑year claims history (loss runs) with narratives and corrective actions.
Requested limits, endorsements (e.g., additional insured, waiver of subrogation), and certificate needs.

Why work with Summit for Ontario CGL

Fully independent Canadian brokerage that shops multiple carriers, builds tailored programs, and discloses compensation. See How We Get Paid.
Fast, tech‑enabled servicing, dedicated account management, and claims advocacy. Start at CGL or contact our teams serving Toronto, Ottawa, and Hamilton. For claims support, visit Claim Services.

FAQs — Ontario CGL cost (2025)

What’s a realistic budget for a new, low‑risk Ontario startup needing $2M CGL? Many quote in the ~$450–$650/year range; add RST and any financing fees. Riskier classes can be $1,000+/year.
Is $2M enough for Ontario contracts? Landlords and enterprise customers often require $2M–$5M. If $5M is required, add umbrella/excess over $2M CGL.
Can I pay monthly? Yes—most carriers or premium finance providers offer installments; total cost can differ from simple annual/12.
Does RST apply to my premium? Yes—Ontario charges 8% RST on taxable insurance premiums; HST/GST generally does not apply.
Who remits premium tax? Insurers generally remit Ontario Insurance Premium Tax; buyers using unlicensed insurers may have to remit directly. Consult your broker/accountant.

Sources

Ontario CGL cost ranges and common limits: Acera Insurance; EasyCover; LiabilityCover; HelloSafe.
Ontario umbrella/excess add‑on cost (small business): Affiliated Insurance (Ontario).
Ontario tax rules: Ontario Ministry of Finance (Insurance Premium Tax); Retail Sales Tax (RST) guidance; Queen’s University guidance on RST vs. HST for insurance invoices.