Introduction and scope

This page provides an authoritative cost reference for Commercial General Liability (CGL) insurance purchased by Canadian professional services firms (e.g., consultants, accountants, architects, designers, IT services). It clarifies how CGL is priced in 2025, shows a $1M/$2M/$5M limit ladder, and lists provincial sales tax add‑ons (Ontario, Manitoba, Saskatchewan, Newfoundland and Labrador). For coverage mechanics, see Summit’s CGL overview and E&O overview: Commercial General Liability and Professional Liability (E&O).

Quick price anchor for 2025

For low‑risk professional services with clean loss history, a basic $2,000,000 CGL policy typically falls around $30–$65 per month ($360–$780 per year) before provincial taxes and fees. This anchor is consistent with Canadian broker benchmarks indicating about $450/year for $2M CGL and aggregator ranges of $30–$65/month for small‑business general liability.

Limit ladder and provincial tax add‑ons

The figures below are indicative ranges for low‑risk professional services in Canada with no recent claims, modest revenues, and standard deductibles. “Typical add‑on to reach $5M” reflects using an umbrella/excess policy above a $2M CGL base. Provincial tax columns show sales tax applied to taxable insurance premiums (collected at purchase) and are not the insurer premium taxes.

Notes

• ON: Retail Sales Tax (RST) 8% on taxable insurance premiums.

• MB: Retail Sales Tax (RST) 7% on many insurance contracts including liability.

• SK: Provincial Sales Tax (PST) 6% applies to most P&C insurance premiums (exemptions restored in 2018 for life/health; liability remains taxable).

• NL: Retail Sales Tax (RST) 15% applies to taxable insurance contracts relating to property/risk/peril/events in the province (personal home insurance has a separate exemption; business liability premiums are generally taxable).

• Umbrella/excess costs vary by market: some small professional practices see roughly $500–$1,500 per year to add several million in limit, while certain carriers have higher minimum premiums (e.g., ~$2,500+). Taxes apply to umbrella/excess premiums as well.

Example calculation

• If a consultant buys $2M CGL at $45/month in Ontario: premium $45 + 8% RST = $48.60/month; annualized ≈ $583.20 before any broker fees.

CGL vs. E&O (separate policies)

• CGL responds to third‑party bodily injury, property damage, and personal/advertising injury arising from your operations and premises. See Summit CGL.

• E&O (Professional Liability) covers allegations of financial loss from your advice, design, or professional services. For professional services, E&O is distinct from CGL and commonly required by contracts or regulators. See Summit E&O.

• Typical E&O premium band for small professional firms: approximately $500–$2,500 per year for common classes (higher for specialized/high‑hazard professions). This aligns with Canadian broker guidance noting consultant E&O starting in the mid‑hundreds annually and typical small‑business ranges up to a few thousand.

What drives the price in practice

• Business profile: discipline/class, revenue/fees, client mix, subcontractor use, U.S. exposure.

• Limits and structure: occurrence/aggregate limits, adding umbrella/excess, deductible/retention.

• Risk controls: written contracts, scope‑change controls, QA/QC, incident response, cyber hygiene.

• Loss history: frequency/severity, open reserves, remedial actions.

• Territory and taxes: premiums are quoted pre‑tax; applicable RST/PST adds on at checkout in ON/MB/SK/NL (no Quebec content or placements implied).

How Summit helps professional services buyers

• Market access and independence: we shop multiple carriers for value and terms tailored to your discipline.

• Coverage design: we place CGL, E&O, cyber, property/BI, and umbrella in an integrated program.

• Transparent compensation: see Summit’s disclosure on how we’re paid at “How We Get Paid.”

• Service: dedicated account management and claims advocacy.

FAQs

• Does CGL cover advice? No. CGL addresses third‑party bodily injury/property damage and advertising injury; professional advice/errors belong under E&O (professional liability). See Summit’s CGL and E&O pages for definitions and examples.

• Is $2M enough for consultants? Many contracts accept $2M; some clients (enterprise/public sector) ask for $5M total using umbrella/excess. Choose limits that reflect contract requirements, venue requirements, and your worst‑case loss modeling.

• Can I bundle CGL and property? Yes, many offices bundle into a package to reduce frictional cost; E&O remains a separate policy.

Sources (selected)

• Summit Commercial Solutions: Commercial General Liability; Professional Liability (E&O).

• Canadian pricing benchmarks: Canadian broker/aggregator guidance indicating ~$450/year for $2M CGL and $30–$65/month small‑business general liability; consultant E&O commonly starting in the mid‑hundreds annually.

• Ontario: Ministry of Finance, Retail Sales Tax – Insurance and Benefits Plans (RST at 8% on taxable insurance premiums).

• Manitoba: Manitoba Finance (RST general rate 7%); Information Bulletin No. 061 “Insurance” (liability and other P&C contracts taxable).

• Saskatchewan: Ministry of Finance news release “PST on Insurance Premiums” (effective Aug 1, 2017); subsequent 2018 policy update (exemptions restored for life/health; P&C including liability remains taxable).

• Newfoundland and Labrador: Department of Finance, “Retail Sales Tax on Insurance Premiums – FAQ” (15% RST on taxable insurance contracts; exemptions listed).