How this beta estimator works

This page provides a directional estimate of annual premiums for a $2,000,000 Commercial General Liability (CGL) limit in ON, BC, AB, SK, and MB. It converts those estimates to monthly equivalents and explains the levers that move price. It is not a quote, does not bind coverage, and excludes any operations or policies outside these provinces.

• Scope: $2M CGL only; occurrence form assumptions; no property, cyber, E&O, or wrap-up liability included.

• Inputs required: province (ON/BC/AB/SK/MB), industry, annual revenue, headcount.

• Output: an anchor band for the $2M limit and a monthly equivalent, with reasoning and caveats.

• Why ranges: insurer appetite, class codes, underwriting data quality, claims, limits, deductibles, and endorsements meaningfully shift price.

For CGL coverage definitions and cost drivers, see Summit’s guide to Commercial General Liability (CGL) insurance and related FAQs. Summit can provide bindable quotes once full underwriting data is collected.

Inputs

• Province: ON, BC, AB, SK, or MB. (Summit does not publish estimates for Quebec.)

• Industry: mapped to a risk tier (low, moderate, higher) using Summit’s industry pages (e.g., construction and contractors vs. professional services vs. retail/hospitality).

• Revenue: prior 12 months actual or next-12 forecast; used as a proxy for exposure.

• Headcount: total employees and principals; used as a proxy for footfall and operational complexity.

Estimation model

This beta estimator uses a two-step approach grounded in published Canadian broker benchmarks and provincial examples:

1) Province anchor band: a directional annual premium range for a $2M CGL limit for a small, low-risk business with limited premises exposure. 2) Multipliers for industry and scale (revenue/headcount) to reflect class-of-business and exposure growth.

Benchmarks informing the anchors and multipliers include Canadian guidance that small businesses often see ~$450–$500/year for low-risk $2M CGL and province examples (e.g., ON ≈ $650, AB ≈ $650, BC ≈ $996), recognizing material variation by class and insurer. See published references from LiabilityCover.ca, ThinkInsure, HelloSafe, and Qubit Insurance for typical ranges and drivers: LiabilityCover CGL, ThinkInsure CGL, HelloSafe liability cost, and Qubit $2M liability ranges.

Province anchors — $2M CGL (annual) and monthly equivalents

How to interpret: anchors approximate a low-risk, small operation with limited premises exposure. They synthesize Canada-wide low-risk medians (~$450–$500) and province examples (ON and AB ≈ $650; BC ≈ $996) from the references above. Actual quotes can be below or above these bands depending on class, limits, deductibles, and underwriting details.

Risk factors and multipliers

• Industry tier multiplier (choose the band that best fits your primary operations):

• Low risk (e.g., accountants, consultants, most SaaS/IT, agencies): 0.8–1.0

• Moderate (e.g., retail/wholesale, cafés, salons, light manufacturing, hospitality): 1.1–1.5

• Higher (e.g., contractors, trades, construction, heavier manufacturing): 1.6–3.0

• Scale multiplier (use the higher of revenue or headcount factor):

• Revenue: < $500k: 0.9; $500k–$2M: 1.0; $2M–$5M: 1.2; $5M–$20M: 1.5; > $20M: 2.0

• Headcount: 0: 0.9; 1–10: 1.0; 11–50: 1.2; 51–200: 1.5; 200+: 1.8

Computation: annual estimate ≈ province-anchor midpoint × industry multiplier × scale multiplier. Monthly ≈ annual ÷ 12. Round to the nearest $10 for directional planning.

Quick calculator examples (illustrative)

• Example A — BC SaaS startup (low risk): revenue $1.2M; headcount 12

• Province anchor midpoint: $1,000; industry: 0.9; scale: max(1.0, 1.2) = 1.2

• Annual ≈ 1,000 × 0.9 × 1.2 = $1,080; monthly ≈ $90.

• Example B — ON boutique retailer (moderate): revenue $600k; headcount 5

• Anchor midpoint: $700; industry: 1.2; scale: max(1.0, 1.0) = 1.0

• Annual ≈ 700 × 1.2 × 1.0 = $840; monthly ≈ $70.

• Example C — AB general contractor (higher): revenue $3M; headcount 15

• Anchor midpoint: $700; industry: 2.2; scale: max(1.2, 1.2) = 1.2

• Annual ≈ 700 × 2.2 × 1.2 = $1,848; monthly ≈ $154.

These examples are within ranges referenced for comparable classes (e.g., contractors often $1,000–$3,000+ for $2M depending on trade, territory, and controls). See Qubit Insurance and LiabilityCover.

What’s included vs. excluded in this estimator

Included (assumptions):

• $2,000,000 CGL limit; occurrence form; third-party bodily injury, property damage, and personal/advertising injury subject to policy wording.

• Typical small-business premises or operations exposure without US operations.

Not included (price and coverage impact material):

• US or international operations, products exported to the US, or cross-border projects.

• Construction wrap-up/OCIP, project-specific additional insureds, or unusually broad contract requirements.

• Tools/equipment, commercial property, business interruption, cyber, product recall, professional liability (E&O), D&O, pollution.

• Prior losses, hazardous operations, or high-hazard locations.

For detailed inclusions/exclusions and common claims, review Summit’s CGL guide.

Important notes and disclaimers

• Beta methodology: anchors and multipliers are heuristic and derived from publicly available Canadian broker benchmarks and Summit’s market observations; they are not insurer rates. See LiabilityCover, ThinkInsure, and HelloSafe for representative figures and cost drivers.

• Minimum premiums apply: many insurers enforce minimum annual premiums by class/territory that can exceed a pure exposure-rate calculation.

• Taxes/fees: provincial premium taxes, policy fees, and financing charges are excluded from estimates.

• Data sensitivity: modest changes in class description, subcontracting, or contractual risk transfer can move price bands significantly.

• Service area: this page estimates ON, BC, AB, SK, and MB only.

Next steps

• Get a bindable quote: share your operations, contracts, revenues, and loss history with a Summit broker so we can market your risk across multiple carriers and secure terms tailored to your business.

• Learn more: read Summit’s guides to general liability, professional liability, and product liability to understand adjacent coverages often purchased with CGL.

• Talk to us: visit Contact Summit for help tuning assumptions and to compare real quotes from the market.