Introduction

Canadian contractors and trades routinely need Commercial General Liability (CGL) to satisfy client and jobsite requirements. For small trades, a typical $2,000,000 limit often lands in the high‑hundreds per year, with higher‑risk work priced materially above that. This page consolidates current Canadian market signals and references, plus Summit’s guidance for selecting limits and common add‑ons.

Quick pricing snapshot (CGL only)

• Typical $2M annual premium for small trades: about $600–$1,200. Lower‑risk cases sometimes start in the $425–$500 range, while mid‑risk trades commonly land $700–$1,000.

• Examples from Canadian brokers/market roundups:

• Ontario broker examples show ~$450–$1,000/year for $2M.

• Some trade classes report $55–$70/month (~$660–$840/year) for $1–$2M.

• Broad market roundups cite ~$450–$500/year for small/midsize contractors (CGL).

• High‑risk or complex contracting can exceed $1,500–$3,000+ for $2M.

Ontario vs. British Columbia: current signals

These ranges reflect recent public quotes/roundups and are directional; individual underwriting will vary by trade, revenue, claims, and risk controls.

For definitions of what CGL covers, see Summit’s Canadian overview of Commercial General Liability and Contractors Insurance.

What drives the price (most impactful levers)

• Trade and hazard class: roofing, exterior work at height, and snow/ice operations price higher than finish carpentry, painting, or handyman services.

• Gross revenues and payroll: more work and larger crews = more exposure hours.

• Claims history and risk controls: prior losses, hot‑work controls, ladder/fall programs, and site housekeeping materially affect rating.

• Subcontractor management: requiring certificates/additional insureds, written contracts with hold‑harmless, and verifying sub limits can reduce loss frequency/severity.

• Limits and deductibles: moving from $1M to $2M typically adds modest incremental premium relative to doubling limits.

Common add‑ons Canadian contractors buy

• Tools and Equipment (contractors’ tools/inland marine): covers movable tools/materials on and between jobsites; widely cited Canadian starting points are around $400/year, varying by total values, theft exposure, and security.

• Non‑Owned Auto Liability: extends liability when employees use their own or rented vehicles on company business; distinct from a full commercial auto policy. See Summit’s Contractors Insurance for coverage context and Summit’s overview of Commercial Auto. For context on Ontario commercial auto cost bands, brokers commonly cite ~$100–$300/month per vehicle (separate policy).

• Installation Floater: covers materials awaiting installation or in transit until they become part of the project; often packaged with tools depending on trade and job values. See Summit’s Builder’s Risk page for related concepts.

How Summit helps contractors in BC, AB, SK, MB, and ON

• Independent market access: Summit is not tied to a single insurer; we compare carriers to target value and wording quality.

• Trade‑specific curation: from finish trades to GC/sub‑trade programs, we align limits, subcontractor conditions, and additional insured requirements.

• Fast certificates and contract support: rush COIs, waiver of subrogation/additional insured endorsements, and project‑specific wording help you mobilize.

• Transparent compensation: see How We Get Paid.

FAQs

What does $2M CGL actually cover for contractors?

CGL addresses third‑party bodily injury, property damage, and certain personal/advertising injury claims arising from your operations or completed work. It does not cover your own faulty work to be re‑done. See Summit’s CGL overview for details.

Is $2M still the right limit for my trade?

Many jobs require $2M, but multi‑family, commercial, or public‑sector projects may demand $5M, umbrella, or project‑specific endorsements. Consider client contracts, exposure at height, and aggregate exposure across concurrent jobs. Market guides show modest step‑ups from $1M to $2M, but larger jumps beyond $2M scale with risk.

Do I need Tools & Equipment coverage if I have CGL?

Yes—CGL doesn’t insure your tools. Tools/Equipment coverage responds to theft, vandalism, and certain accidental damage to insured items on the move or on site; Canadian starting points are commonly around $400/year and scale with values/security.

What’s the difference between Non‑Owned Auto Liability and Commercial Auto?

Non‑Owned Auto extends liability when staff use personal/rented vehicles for your business; it rides with your liability program. Commercial Auto insures vehicles titled to the business. Ontario brokers commonly cite ~$100–$300/month per vehicle for commercial auto policies; non‑owned auto is a lower‑cost add‑on to your liability policy.

How can I reduce my CGL premium without under‑insuring?

Tighten subcontractor controls (written agreements, certificates, AI status), implement fall‑protection and hot‑work protocols, keep clean loss runs, and right‑size limits/deductibles relative to your contracts and exposure profile.

What information should I prepare for a faster quote?

Trade scope and percentages, revenue/payroll, prior losses (5 years), typical job values, subcontractor usage/controls, desired limits, and any certificate/AI requirements. You can start via contact or the business insurance page.

References used for market ranges include Canadian broker pages and market roundups to give directional pricing; your final premium depends on underwriting for your specific trade, operations, and risk controls.