Introduction

Most Canadian retail shops pay about $450–$900 per year for a $2,000,000 Commercial General Liability (CGL) limit before provincial insurance taxes; totals are higher in provinces that apply retail/provincial sales tax to insurance premiums (e.g., Ontario 8%, Manitoba 7%, Saskatchewan 6%, Newfoundland & Labrador 15%). These anchor figures come from Canadian broker disclosures and retail-specific pages that cite a $450 starting point for $2M CGL and $600–$900 typical ranges for retail operations. See Zensurance’s small business and retail pages and Qubit Insurance’s $2M breakdown.

What $2M CGL covers for retailers

A CGL policy addresses third‑party bodily injury, property damage, personal/advertising injury, and products/completed operations arising from your premises and operations—core slip‑and‑fall and product claims that brick‑and‑mortar and ecommerce retailers face. See Summit’s and Markel Canada’s coverage summaries.

Key points for retailers:

Premises liability for customer injuries and third‑party property damage.
Products liability for goods you sell or distribute (often included under CGL for retailers).
Contractual liability for indemnities commonly found in leases and vendor agreements.

Add‑ons landlords and counterparties typically require

These endorsements and terms are routinely requested in Canadian commercial leases and vendor contracts:

Tenants’ Legal Liability (TLL): Covers your legal liability for damage to the leased unit you occupy (separate from damage to neighbouring units). See explanations from Canadian brokers.
Non‑Owned Automobile Liability (SPF No. 6): Protects the business when employees use personal or rented vehicles for work. See Canadian NOA/SPF‑6 references.
Additional Insured, Waiver of Subrogation, Cross‑Liability/Severability: Common commercial lease covenants for retail tenancies.

Worked cart examples: before/after PST/RST and monthly

Illustrative only. Quotes vary by operation, claims, location, and contract requirements. Sales tax rates shown are those that apply to insurance premiums in the listed provinces; GST/HST generally does not apply to insurance premiums, but several provinces levy their own tax on insurance contracts (see provincial sources in the next section).

Province (ex‑QC)	Base annual premium (CGL $2M)	Provincial tax on insurance premium	Total annual	Approx. monthly (12×, no financing)
British Columbia	$650.00	$0.00	$650.00	$54.17
Alberta	$600.00	$0.00	$600.00	$50.00
Ontario (8% RST)	$650.00	$52.00	$702.00	$58.50
Manitoba (7% RST)	$900.00	$63.00	$963.00	$80.25
Saskatchewan (6% PST)	$700.00	$42.00	$742.00	$61.83
Newfoundland & Labrador (15% RST)	$700.00	$105.00	$805.00	$67.08

Notes:

Ontario: RST is 8% on taxable insurance premiums; financing/interest charges for monthly pay are not subject to RST.
Saskatchewan: PST applies to most property and liability insurance; certain life/health classes are exempt.
Manitoba: 7% RST applies to insurance premiums by statute.
Newfoundland & Labrador: 15% RST applies to taxable insurance premiums (exemptions listed by the Department of Finance).

How provincial taxes apply to retail CGL (excludes Quebec)

GST/HST: Most insurance premiums are treated as exempt financial services by the CRA (i.e., no GST/HST charged to the policyholder). See CRA policy examples and tax guidance.
Provincial retail/sales tax on insurance premiums (paid by insureds and itemized on invoices):
Ontario: 8% RST on taxable insurance premiums.
Manitoba: 7% RST on insurance contracts; statute provides charging/collection rules.
Saskatchewan: 6% PST continues to apply to most property/liability insurance; select classes are exempt.
Newfoundland & Labrador: 15% RST on taxable insurance premiums (with listed exemptions).
Provinces with no separate RST/PST on insurance premiums: AB, BC, NB, NS, PEI, plus the territories (insurance remains GST/HST‑exempt to the policyholder).
Separate insurer‑side premium taxes (embedded in pricing): Provinces also levy insurance premium taxes on insurers; these are not typically line‑itemed to policyholders. Example: BC shows insurer premium tax rates of 4%–4.4% by class.

Factors that move a retailer’s CGL price

Underwriters will re‑rate for:

Foot traffic and operations (e.g., apparel vs. hardware vs. restaurant exposure).
Annual revenue, locations, and store size (leased area and occupancy type).
Claims history and risk controls (housekeeping, slip resistance, hot‑work controls for on‑site services, etc.).
Contract requirements (higher limits; additional insured/waiver requirements can influence market selection and pricing).
Packaging with property/BI and cyber (a package can be more economical than monoline liability). See Summit’s overviews for cost drivers and packaging.

What to prepare for a fast quote

Provide: legal name(s) and locations, lease insurance clauses (limits, TLL, additional insured/waiver language), operations summary and revenue, number of employees, prior 5‑year losses (if any), and desired effective date. Summit’s intake mirrors these items.

How Summit helps Canadian retailers (outside Quebec)

Summit is an independent Canadian brokerage. We compare multiple markets, tailor CGL limits and landlord‑required endorsements (TLL, additional insured, waiver of subrogation, SPF 6 where needed), and can bundle property, business interruption, and cyber to keep total cost efficient. Start with Summit’s CGL and Retail & Wholesale pages to request a proposal.