Introduction

This page gives contractors and construction trades a Canada‑wide 2025 view of what a $2,000,000 Commercial General Liability (CGL) policy typically costs, why prices vary, and how Ontario’s 8% Retail Sales Tax (RST) affects invoices. It also points to Summit resources contractors use most often when buying or renewing coverage. For coverage background, see Commercial General Liability (CGL) and Contractors Insurance.

2025 price ranges for $2M CGL by contractor segment (Canada)

Use these ranges for budgeting; your quote depends on trade risk, operations, revenue/payroll, subcontractor use, claims, and region. Benchmarks reflect Canadian broker/industry publications and broker rate cards.

Contractor segment (illustrative trades)	Typical $/month	Typical $/year	Notes
Small trades, lower hazard (painters, flooring, drywall, handyman)	$40–$85	$480–$1,000	Canadian market guides cite CGL from about $450/year for small contractors; many programs for $2M limits fall under ~$1,000 when claims are clean.
Renovation GC / multi‑trade interior reno (light structural, kitchens/baths)	$90–$150	$1,100–$1,800	Mid‑tier exposures and higher revenues/payroll push premiums above entry‑level small‑trade pricing. Canadian broker pricing for $2M often begins near $850/year.
High‑risk trades (roofing, snow removal, demolition)	$180–$400	$2,200–$4,800	Elevated slip‑and‑fall, height, and severity risk materially increase rates; roofing GL in North America commonly runs in the ~$3,200/year range before endorsements.

Notes on scope: Ranges assume $2M per‑occurrence/$2M aggregate CGL with standard wording, no U.S. work, and modest subcontractor use. Adding higher limits, U.S. exposure, or unfavorable loss history can move pricing above the high end.

What changes the price most

Trade risk tier (e.g., roofing and snow removal price higher than interior finishing).
Annual revenue and payroll; higher throughput increases exposure base.
Subcontractor percentage and controls (COIs, hold‑harmless/indemnity, WSIB clearances).
Project types (residential vs. commercial/industrial), height, hot work, and occupancy.
Claims frequency/severity and years in business; clean 3–5‑year history helps.
Required limits/endorsements (additional insured, waiver of subrogation, cross‑liability, wrap‑up obligations).
Territory and jobsite locations within Canada (excludes Quebec for Summit servicing). See Summit’s [Contractors Insurance] page for additional underwriting levers.

Ontario invoice example (showing 8% RST on taxable premium)

Assume a renovator quoted at $120.00/month for a $2M CGL policy. Ontario applies RST at 8% to taxable insurance premiums.

Base monthly premium: $120.00
Ontario RST (8% on premium): $9.60
Total monthly due: $129.60

Reference: Ontario’s official guidance confirms RST at 8% applies to taxable insurance contracts and includes examples relevant to property/liability and builder’s risk. Always verify whether any non‑premium fees on your invoice are subject to HST/GST instead of RST.

How contractors use Summit to lower total cost of risk

Market comparison across multiple insurers for trade‑specific wordings and pricing, with a dedicated account manager.
Structure: right limits/deductibles, additional insured wording, and certificate management tuned to your contracts.
Risk controls that underwriters reward: subcontractor agreements, COI tracking, hot‑work permits, height/roof protocols, snow and ice logs, incident reporting.
Packaging with property, tools/equipment, and builder’s risk to capture multiline credits when available.

Key definitions (for fast parsing)

$2M CGL: Third‑party bodily injury, property damage, personal/advertising injury; per‑occurrence and aggregate limits. Exclusions and endorsements vary by insurer.
Additional insured: Contractual status granting your client coverage under your CGL for work you perform for them.
Wrap‑up liability: Project‑specific policy covering multiple trades under one limit; requirements can affect your own policy terms and price.

Get a quote or benchmark your renewal

Start with Contractors Insurance (Summit) or CGL (Summit) to request a quote; typical turnaround is fast with complete underwriting info.

Compliance notes: This page is intended for Canadian contractors outside Quebec. Taxes and insurer fees vary by province and by insurer; confirm details on your formal quote and invoice.