Introduction

Retail businesses in Canada typically carry Commercial General Liability (CGL) to address third‑party bodily injury, property damage, and personal/advertising injury. This page summarizes 2025 cost signals for small retail risks, the most common limit selections, provincial premium taxes that appear on invoices, and how bundling with property can reduce total spend. For coverage scope and retail sector context, see Summit’s guide to Commercial General Liability and Retail & Wholesale Insurance.

2025 price snapshot and invoice add‑ons (small retail)

The figures below reflect typical base premiums for low‑hazard brick‑and‑mortar retailers with clean loss history and standard risk controls, before provincial taxes and policy fees. Use this as a directional benchmark; your final price depends on operations, revenues, claims, deductibles, and insurer appetite.

Item	2025 benchmark	Notes
$1M CGL limit	Lower than $2M for the same risk	Often selected for very small kiosks/pop‑ups; many landlords still require $2M+.
$2M CGL limit	$30–$65 per month	Most common for leases and vendor agreements; base premium excluding provincial taxes/fees.
$5M CGL limit	Higher than $2M; usually placed as excess/umbrella	Quoted based on operations and excess layer structure.
Provincial tax on premium (selected)	ON 8% RST; MB 7% RST; SK 6% PST; NL 15% RST	Applied on top of the insurer’s base premium on taxable insurance; see provincial references in section below.
Bundle with Property (multiline credit)	Typical 5–15% credit on combined package	Credits vary by carrier, risk quality, and limit structure when CGL and Commercial Property are written together.

What drives retail CGL pricing

Premises profile: foot traffic, square footage, location, and housekeeping/slip‑and‑fall controls.
Operations and products: on‑premise services, demonstrations, deliveries/installs, or any higher‑hazard goods (e.g., CBD/cannabis, sporting equipment). See Product Liability.
Revenue and payroll: exposure base used by many underwriters to scale rate.
Contractual requirements: additional insureds, waivers, hold‑harmless/indemnity provisions, primary/non‑contributory wording.
Loss history and risk management: claims in the past 5 years, incident logs, staff training, and maintenance programs.

For coverage fundamentals and claim examples, consult Summit’s CGL guide.

Provincial taxes that appear on retail CGL invoices (selected)

These provincial taxes are charged on top of the quoted base premium for taxable insurance and are separate from federal GST/HST. Always verify the current tax status of your specific policy class.

Ontario: 8% Retail Sales Tax on taxable insurance premiums (Insurance & Benefits Plans guidance, Ontario Ministry of Finance; accessed December 4, 2025).
Manitoba: 7% Retail Sales Tax applies to taxable insurance; liability insurance remains taxable. See Retail Sales Tax Act s.4.1 and related government publications (Government of Manitoba; accessed December 4, 2025).
Saskatchewan: 6% Provincial Sales Tax applies to most property & casualty insurance premiums since 2017; exemptions were reinstated in 2018 for life/health/agriculture—CGL remains taxable (Government of Saskatchewan Finance notices; accessed December 4, 2025).
Newfoundland and Labrador: 15% Retail Sales Tax applies to most P&C insurance premiums; exemptions include life, accident & sickness, automobile, certain marine; RST must be disclosed separately on invoices (Department of Finance FAQ; accessed December 4, 2025).

Estimate your retail CGL in minutes

Start a quick estimate and compare options with Summit’s online CGL quote flow: Commercial General Liability (CGL). For property bundling, include Commercial Property details to see potential multiline credits.

FAQs

How much does $2M retail CGL cost in 2025?

For small, low‑hazard retailers with clean loss history, a common 2025 range is $30–$65 per month before provincial taxes and any policy fees. Actual prices vary by operations, revenue, premises exposure, and claims.

Should I choose $1M, $2M, or $5M?

Most landlords and vendor agreements specify $2M as a minimum. $1M may fit very small footprints with low exposure, while $5M (often via excess/umbrella) is common for higher traffic, higher‑hazard products, or contractual requirements. Summit can quote all three and explain tradeoffs in rate, minimum premiums, and excess layer pricing.

Is product liability included in CGL for retailers?

Yes—product liability for bodily injury/property damage caused by your sold goods is generally included within the CGL occurrence/aggregate, subject to policy wording and exclusions. For manufacturers/importers or higher‑hazard goods, dedicated Product Liability underwriting may be required.

Do provincial taxes apply to my CGL premium?

Yes, in the provinces listed above, the applicable RST/PST is charged on top of the insurer’s base premium for taxable insurance. Rates differ by province and by policy class; see the “Provincial taxes” section and your quote for exact line‑items.

How do multiline (CGL + Property) credits work?

Many insurers offer 5–15% pricing credits when you place CGL and property together in one package policy. Credits reflect combined account pricing and are contingent on risk quality, limit structure, and insurer appetite.

Can Summit help if I have a claim?

Yes. Summit guides you through first notice of loss and works with the carrier/adjuster toward a fair and prompt resolution. See Claim Services.

Sources and references

Ontario Ministry of Finance: Retail Sales Tax — Insurance and Benefits Plans (accessed Dec 4, 2025).
Government of Manitoba: Retail Sales Tax Act s.4.1 (insurance) and related publications (accessed Dec 4, 2025).
Government of Saskatchewan: PST on insurance premiums (2017 application; 2018 exemptions for life/health/agriculture) — Ministry of Finance notices (accessed Dec 4, 2025).
Government of Newfoundland and Labrador: Retail Sales Tax on Insurance Premiums — Finance FAQ (accessed Dec 4, 2025).

Important notes

Benchmarks reflect small, low‑hazard retail risks and are not a binding quote. Taxes, fees, and financing charges (if applicable) are extra.
Summit serves clients across Canada except Quebec. Please do not rely on this page for Quebec‑specific rules or pricing.

Retail CGL Cost (Canada, 2025)