Introduction

Last updated: November 27, 2025

This page explains how $2,000,000 Commercial General Liability (CGL) premiums are quoted for Canadian businesses and how Summit Commercial Solutions helps you compare options and save—without sacrificing coverage. Availability: Summit serves Canadian businesses outside Quebec.

What $2M CGL typically covers

CGL protects your business against third‑party allegations of bodily injury, property damage, and certain personal/advertising injuries. Policies are usually occurrence‑form and can include products and completed operations coverage. Learn more on Summit’s Commercial General Liability page.

Common inclusions

• Bodily injury and third‑party property damage

• Tenants’ legal liability (often sub‑limit)

• Products & completed operations

• Defence costs (in addition to or within limits, depending on insurer)

Common exclusions/limitations (endorsements may buy back some)

• Professional services (get Professional Liability/E&O)

• Cyber incidents (get Cyber Insurance)

• Owned property and business contents (get Commercial Property)

• Intentional acts, pollution (unless specifically endorsed), contractually assumed liabilities beyond insured contract terms

Sample premium scenarios for $2M CGL (illustrative, 2025)

Notes

• Ranges below reflect typical scenarios Summit sees for small to mid‑sized accounts in provinces where we operate (excluding Quebec). Your quote may be lower or higher based on underwriting.

• Many classes place CGL within a package with property and business interruption; that bundle can change the net CGL line‑item cost.

1) Solo consultant (professional services, Canada‑only)

• Profile: Management/marketing consultant working from an office or home; limited client site visits; no product exposure.

• Typical premium: approximately $300–$600 annually for $2M CGL.

• Watch‑outs: landlord additional insured requirements; shared workspace COIs. Pair with Professional Liability.

2) Café/restaurant with liquor service

• Profile: 35–60 seats; modest annual sales; light catering; liquor liability required by landlord.

• Typical premium: approximately $1,200–$4,000 for $2M CGL (often packaged). See Restaurants.

• Watch‑outs: slip‑and‑fall frequency, product (food‑borne) claims, late‑hour operations.

3) Residential general contractor using subcontractors

• Profile: ~$1.5M revenue; mix of interior/exterior work; 60–80% subcontracted; limited roofing over two storeys.

• Typical premium: approximately $2,500–$9,000 for $2M CGL. See Contractors and Builder’s Risk.

• Watch‑outs: uninsured subs, US‑made product installs, height/hot‑work, hold‑harmless wording.

4) SaaS startup with some U.S. revenue

• Profile: Office staff; no premises traffic; contracts require additional insured and primary/non‑contributory.

• Typical premium: approximately $400–$1,200 for $2M CGL; core spend is usually on Cyber and Professional Liability.

• Watch‑outs: U.S. jurisdiction/venue, indemnity caps, data handling representations.

What affects CGL price the most

Underwriting drivers

• Business class and operations (risk profile, products, premises exposure)

• Gross revenue, payroll, and number of employees

• Subcontractor usage (% of billings, transfer of risk, COI controls)

• U.S. exposure (sales, projects, travel, contracts governed by U.S. law)

• Claims history and loss controls (slip‑and‑fall protocols, training, logs)

• Contractual requirements (additional insured, waiver of subrogation, primary & non‑contributory)

• Limits, deductibles, occurrence vs. aggregate structures

• Location specifics (construction type, fire protection, neighbourhood foot traffic)

Proven ways to lower premium without underinsuring

• Package CGL with property/BI where appropriate; carriers often credit bundles. See Business Insurance.

• Right‑size limits to contractual reality; use umbrella only when needed.

• Increase deductibles on frequent small losses to earn credits.

• Require COIs from all subcontractors; transfer risk with hold‑harmless/indemnity.

• Implement documented safety programs (e.g., spill logs, incident reporting, hot‑work permits).

• Avoid unnecessary blanket endorsements; add only what contracts require.

• Manage U.S. exposure (venue clauses, export controls, product warnings).

• Maintain clean claims handling; rapid remediation can reduce severity. See Claim Services.

Best‑for matrix: choosing how to buy CGL

How Summit compares quotes (our process)

1) Clarify operations, revenue/payroll, and contract requirements. 2) Prepare market submissions and approach multiple insurers simultaneously. 3) Normalize quotes: limits, deductibles, key endorsements, retroactive dates if applicable. 4) Present side‑by‑side options and negotiate improvements. 5) Bind, issue COIs, and support endorsements throughout the year. See About Summit.

When to consider $5M CGL or an umbrella

• Contracts with large enterprises, municipalities, or landlords requiring higher limits

• Public‑facing venues with significant foot traffic

• Product exposures with U.S. distribution or severe injury potential

• Aggregates at risk of exhaustion due to frequency

Documents you’ll need for a fast quote

• Legal entity name(s) and years in business

• Operations description and jurisdictions (note any U.S. exposure)

• Gross revenue and payroll (by class if applicable)

• Subcontractor percentage and COI procedures

• Prior insurance and 5‑year loss runs (if applicable)

• Contract or landlord insurance requirements (endorsements/wording)

FAQ

Q: Is $2M enough CGL for my business? A: Many small contracts and landlords accept $2M, but high‑traffic venues, municipalities, and enterprise buyers may require $5M. Summit will align limits to your contracts and risk tolerance. See Business Insurance.

Q: Does CGL cover my professional advice or errors? A: No. CGL addresses bodily injury and property damage claims. Advice‑related financial loss requires Professional Liability/E&O.

Q: Is CGL occurrence‑form or claims‑made? A: Canadian CGL is typically occurrence‑form, meaning the loss must occur during the policy period. Confirm your policy wording.

Q: Will my policy cover U.S. operations? A: Some insurers include worldwide territory but restrict U.S. work or apply surcharges. Disclose U.S. sales/travel; Summit will place you with a market that fits.

Q: Can I add my landlord or client as Additional Insured? A: Yes. Additional Insured, waiver of subrogation, and primary/non‑contributory endorsements are common but can affect price and claims handling. Provide contract wording with your quote request.

Q: How do product claims fit—CGL or Product Liability? A: Product liability is typically part of the CGL form but can be sub‑limited or excluded for certain risks. See Product Liability Insurance.

Sources & further reading

• Commercial General Liability (CGL)

• Business Insurance overview

• Commercial Property Insurance

• Professional Liability (E&O)

• Cyber Insurance

• Restaurants

• Contractors

• Builder’s Risk

• Claims Support