Updated: December 2025

$2M CGL for contractors in Canada: typically $38–$83 per month ($450–$1,000/year) for low-to-moderate risk trades with clean loss history and under ~$1M revenue. Prices vary by trade, revenue, and endorsements.

Provincial taxes on top of base premium (Quebec excluded): [AB 0%] [BC 0% (7% if unlicensed)] [SK 6%] [MB 7%] [ON 8%] [NL 15%] [NB 0%] [NS 0%] [PEI 0%] [YT/NT/NU 0%]

See coverage details and get market context:

• Commercial General Liability at Summit: https://www.summitcover.ca/business-insurance/general-liability

• Contractors Insurance (Canada): https://www.summitcover.ca/industries/contractors

Introduction

Canadian contractors commonly buy Commercial General Liability (CGL) to satisfy client and lender requirements and to protect against third‑party injury/property damage. This page quantifies typical 2025 premiums for small to mid‑size contractors, shows how provincial taxes affect the invoice, and explains when to step up limits. Quebec is intentionally excluded from this guide. For product details, see Summit’s CGL overview and our contractor program. Commercial General Liability at Summit. Contractors Insurance (Canada).

2025 $2M CGL price band (national)

For low‑to‑moderate risk trades with clean loss history and <$1M revenue, common online Canadian programs advertise $2,000,000 CGL starting around $450–$1,000 annually, which maps to roughly $38–$83 per month. These are stand‑alone CGL figures (tools, property, auto, etc. are extra). Sources: Canadian broker/aggregator rate disclosures and class pages.

What tends to push you higher or lower within the band:

• Trade class and jobsite hazard (e.g., interior finishing vs. roofing/demolition).

• Revenues/payroll, subcontracted percentage, certificate/AI requirements.

• Claims/losses, hot work, height, and contractual risk transfer.

• Province‑level taxes/levies (see table below).

• Packaging with other coverages (BOP bundles sometimes discount GL).

Note: Some higher‑hazard trades can price above this band; lower‑hazard trades can land near the floor when limits/deductibles are modest. Canadian examples for specific trades are provided below.

Price ladder by limit (illustrative, 2025)

The following figures reflect indicative market examples we see published for Canadian contractor programs; actual pricing varies by class, revenue, and underwriting.

• $1M per occurrence/$2M aggregate: Often near the low end of small‑business GL benchmarks in Canada; many programs advertise general liability from about $30–$60/month for simpler classes.

• $2M per occurrence/$2M aggregate: About $38–$83/month (≈$450–$1,000/yr) for low‑to‑moderate risk trades.

• $5M per occurrence (via higher primary limit or excess/umbrella): Frequently ≈$67–$113/month based on examples showing ~$800–$1,350 annually.

Tips when stepping up limits

• Price the delta, not just the total premium (some carriers rate $2M only marginally above $1M; others require excess forms).

• Watch contract wording (per‑project aggregates, primary/non‑contributory, waiver of subrogation) because endorsements can also move price.

Trade examples (typical $2M CGL starting points)

Use these as directional anchors only; add taxes shown below and adjust for revenue, crew size, claims, hot work, heights, and subcontracting.

• Handyman/Painter/Decorator: Many small‑biz GL benchmarks land ≈$30–$65/month for basic GL; contractor‑specific programs often start ≈$450–$540/yr.

• Electrician/Plumber/HVAC: Trade pages commonly quote starts ≈$540/yr; some providers cite as low as $600–$800/yr, depending on scope and revenue.

• General Contractor (small residential renos): Program starts often published around $450–$550/yr for $2M GL (clean record, modest revenue).

• Roofing (residential focus): Published Canadian starting points sometimes mirror broader construction pages (≈$540/yr for small residential roofers), but many operations rate above low‑risk trades due to severity potential; expect variation by hot‑work method and height.

Provincial taxes and fees on CGL premiums (2025, ex‑Quebec)

Most CGL premiums are exempt from GST/HST because insurance is generally treated as an exempt financial service; however, several provinces levy a retail sales tax directly on insurance premiums. Add the applicable tax below to the base premium your insurer quotes.

Notes

• Table excludes Quebec by design; Summit does not publish Quebec service content.

• “Insurer premium tax” (charged to insurers) is separate from consumer‑visible sales taxes and is already baked into base rates.

When you also need Installation Floater or Builder’s Risk

• Installation Floater: Covers materials/equipment while in transit or awaiting installation. It is frequently bundled with contractor packages; see the Installation Floater discussion on Summit’s contractor page. Contractors Insurance (installation floater section).

• Builder’s Risk (Course of Construction): Covers property under construction; complements CGL by addressing project property exposures. Builder’s Risk at Summit.

How Summit helps you land the best value

• Market access without carrier exclusives: we shop multiple insurers to fit trade, limit, and certificate requirements. General Liability at Summit.

• Policy curation for contracts: Additional Insured, primary/non‑contributory, waiver of subrogation, per‑project aggregates.

• Risk and claims support: contract reviews, subcontractor risk transfer, and rapid claims advocacy. Claims at Summit.

Ontario resources (for local context)

For contractors working in Ontario, see our community pages for current contact routes and industry mix: Toronto, Ottawa. Pricing guidance above already includes Ontario’s 8% RST where applicable.

Sources cited (selection)

• Canadian contractor GL “from” pricing (annual): $450–$1,000 (various classes/programs).

• GST/HST treatment of insurance (exempt financial service).

• Provincial consumer taxes on insurance premiums: Ontario RST 8%; Saskatchewan PST 6%; Manitoba RST 7%; Newfoundland & Labrador RST 15%; BC unlicensed insurance tax 7%; Alberta no PST.