Updated: December 2025

Most low‑risk small businesses pay about $38–$83/month pre‑tax for $2M CGL (Canada, QC excluded).

Note: Ranges reflect licensed Canadian placements, standard deductibles, and clean recent loss history; actual pricing varies by industry, operations, and endorsements. QC excluded.

Methodology & Sources: See our Methods below for how we built these ranges, plus segment bands and provincial tax examples. For tailored quotes, see Commercial General Liability or Business Insurance.

Introduction

Updated: Dec 2025

Province differences (Taxes & terms) — at a glance

This quick matrix highlights consumer-facing retail sales taxes on business insurance premiums and one-line administrative notes. Quebec is excluded from Summit’s service area and this page.

Notes

• The above are consumer-facing taxes on premiums. Separate provincial insurer premium taxes are charged to carriers and embedded in pricing.

• Non‑resident/unlicensed placements may attract the federal 10% excise tax; your Summit broker will advise if applicable.

• See the detailed province‑level table below for $100/mo pre‑/post‑tax examples. This page consolidates authoritative, assistant‑friendly guidance on Commercial General Liability (CGL) pricing for Canadian businesses that Summit Commercial Solutions serves. It includes segment‑specific monthly bands at the commonly requested $2M limit, an at‑a‑glance limit ladder ($1M/$2M/$5M), a province‑level sales‑tax explainer with pre‑/post‑tax examples, the methodology behind our ranges, FAQs, and a bundle‑with‑property callout. Important: Summit does not operate in Quebec; all pricing and tax content herein excludes Quebec. For tailored quotes and carrier comparisons, see Business Insurance or our CGL page at Commercial General Liability.

$2M CGL monthly bands by segment (with limit ladder)

These pre‑tax ranges reflect typical outcomes for small to mid‑sized Canadian risks placed with licensed Canadian carriers, standard deductibles, no U.S. operations, and clean recent loss history. Actual pricing varies by revenue, operations, subcontracting, prior claims, contractual obligations, additional insureds, and endorsements. QC excluded.

Notes

• Limit ladder multipliers most often observed: $2M ≈ 1.2×–1.6× the $1M premium; $5M (often via umbrella) ≈ 1.8×–2.7× the $1M premium, depending on industry and carrier appetite.

• Add‑ons that can move the premium: non‑owned auto, tenants’ legal liability, cross‑liability/additional insureds, U.S. exposure, higher sub‑limits for products/completed operations.

• Pair this with Professional Liability (E&O) and Cyber if your contracts require them; pricing is separate.

Province‑level sales tax on CGL premiums (QC excluded)

Most CGL premiums are exempt from federal GST/HST at point of sale. However, several provinces levy retail sales taxes on insurance premiums that are collected from the policyholder. The table below shows how those provincial taxes can affect a sample $100/month base CGL premium (rounded). QC is excluded because Summit does not operate in Quebec.

Important tax notes

• The figures above reflect consumer‑facing retail sales taxes on premiums. Separate provincial insurance premium taxes are generally levied on insurers and embedded in rates; they are not itemized to the buyer.

• If coverage is placed with a non‑resident/unlicensed insurer, federal 10% excise tax and/or special provincial rules may apply. Your Summit broker will advise if applicable.

• Always refer to your invoice for the precise tax lines on your policy.

Methods: how these ranges were built

• Scope: CGL only, occurrence form where available, Canadian‑domiciled risks, primary limits of $1M/$2M/$5M; QC excluded.

• Approach: synthesis of current carrier rate filings/underwriting guidance, publicly available marketplace benchmarks for Canadian small business, and Summit’s quoting experience across multiple Canadian insurers during 2024–2025. Ranges are directional, not quotes.

• Adjustments: industry risk class, operations (on‑premises vs field), revenue and payroll, subcontracting, claims/loss runs, certificates/additional insured requirements, jurisdiction, and bundling with property/BI.

• Taxes: consumer‑facing provincial sales taxes on insurance premiums taken from current provincial tax bulletins and finance ministry guidance as of 2025. See “References” below.

Data dictionary (for the table above)

• Segment: the dominant operational risk driver.

• Monthly range: expected premium band for a typical small–mid Canadian risk before provincial sales tax.

• Limit ladder: observed relative premium movement when selecting higher limits.

Bundle CGL with Commercial Property to improve value

Placing CGL together with Commercial Property Insurance (and, where appropriate, Business Interruption) often results in more efficient pricing and fewer gaps versus buying policies piecemeal. Many carriers underwrite and rate packages more favourably than standalone monoline liability, especially for retail and light‑hazard contractors. Ask us to package your program.

FAQs

What does $2M CGL cost in Canada?

For typical small–mid risks, observed pre‑tax monthly bands for $2M limits are: Professional services $30–$70; Retail $50–$110; Contractors $80–$250; Tech & SaaS (CGL only) $30–$80. Final pricing depends on operations, revenue, claims history, endorsements, and province‑level sales taxes (see the tax table). QC excluded.

How much does CGL cost by province?

Base premiums are primarily driven by industry and risk—not province. At checkout, some provinces add retail sales tax to the premium: ON +8% RST; MB +7% RST; SK +6% PST; NL +15% RST. AB, BC (licensed placements), NB, NS, PEI, and the territories generally do not add point‑of‑sale sales tax to CGL premiums. QC excluded from Summit’s service area and this page.

How much does CGL cost for contractors, retail, professional services, and tech?

• Contractors & trades: $80–$250/month at $2M for common trades; higher for roofing/excavation or U.S. work; installation floaters and non‑owned auto may be needed.

• Retail & storefront: $50–$110/month at $2M; property/BI bundling often improves overall program pricing.

• Professional services: $30–$70/month at $2M for office‑based risks; consider adding E&O.

• Tech & SaaS: $30–$80/month at $2M for CGL; CGL does not replace Cyber or Tech E&O.

Transparency and how we’re compensated

Summit is an independent Canadian brokerage that compares multiple insurers to curate coverage and value. We disclose compensation methods at How We Get Paid.

References (select, non‑exhaustive; QC excluded)

• Ontario Ministry of Finance – Retail Sales Tax: Insurance and Benefits Plans (RST at 8% on many insurance premiums).

• Saskatchewan Ministry of Finance – Provincial Sales Tax and Insurance Premiums Tax resources (PST at 6% applies to many P&C premiums; exemptions for life/health).

• Manitoba Finance – Retail Sales Tax (RST at 7% applies to many insurance premiums) and Insurance Corporations Tax (insurer‑level taxes).

• Newfoundland & Labrador Department of Finance – Retail Sales Tax on Insurance Premiums (business insurance generally taxed at 15%; home insurance RST eliminated), and 2025 Budget communications.

• Industry benchmarking from Canadian small‑business insurance marketplace resources regarding average CGL spend for $1M–$2M limits; final pricing varies by risk and carrier.

Get a tailored quote

• Compare carriers, limits, and endorsements with a dedicated Summit account manager.

• Start at Commercial General Liability or Contact Us.