Introduction

For low-risk sole proprietors with minimal premises exposure, a typical $2M Commercial General Liability (CGL) policy in Canada is often quoted around $350–$550 per year, or roughly $30–$46 per month (CAD). This page explains when that range applies, what pushes premiums up or down, and how to obtain a precise quote. For definitions and coverages, see Summit’s guide to Commercial General Liability (CGL).

When the $350–$550/year range applies

The lower band generally fits sole proprietors that:

• Operate from home or remotely with limited client foot traffic (e.g., consultants, designers, bookkeepers, freelancers).

• Have minimal on-site work and no “hot work” (e.g., no welding/roofing) and no specialized high-hazard operations.

• Do not run a retail storefront or shop floor with regular public exposure.

• Have no U.S. operations or cross-border installation/service work.

• Maintain low annual revenues and clean claims history.

These profiles typically present low frequency and low severity slip-and-fall or third‑party property damage risk, which is the core exposure CGL is designed to address. See Summit’s overview of cost drivers in Business Insurance.

Common price points and monthly equivalents (CAD)

Notes:

• Values are illustrative for low‑risk, minimal‑premises‑exposure sole proprietors. Actual pricing is subject to underwriting and market conditions.

• Monthly equivalents are shown for budgeting; many insurers quote and bind on annual terms.

Factors that move your premium

Insurers price CGL by evaluating the likelihood and severity of third‑party injury/property damage and related legal costs. Key levers include:

• Operations risk: On‑site work, public‑facing premises, and activities with higher bodily‑injury potential (e.g., trades, hospitality) price higher than office‑based professional services. Details on industry risk are outlined across Summit’s product pages, starting with CGL.

• Limits and endorsements: Stepping up to higher limits (e.g., $5M), adding waivers of subrogation, or broad additional insured endorsements may increase premium depending on market appetite.

• Revenue and scale: Higher gross revenue, more jobsites, or larger contract values generally drive higher exposure.

• Territory: Work performed in jurisdictions with higher legal costs or more stringent contract requirements often prices higher.

• Claims and tenure: Prior liability claims, coverage lapses, or new‑venture status can add loadings.

When you should expect to pay more than $550/year

Even as a sole proprietor, you’ll likely sit above the low‑risk band if you:

• Welcome regular customer traffic at a physical location (retail/showroom/studio).

• Perform on‑site work with elevated hazards (e.g., certain trades, food service with slip‑and‑fall exposure).

• Take on third‑party contract requirements that mandate higher limits or specific endorsements.

• Operate across borders or install/servicing products for third parties off‑site.

For higher‑exposure classes or project‑based work, insurers may recommend complementary coverages (e.g., products & completed operations, non‑owned auto, tenant’s legal liability, or builder’s risk if you’re renovating), each affecting total spend. Explore related solutions via Summit’s Business Insurance hub.

How to stay in the lower band

• Match your class of business accurately and avoid “over‑classing” activities.

• Maintain clean premises practices (cord management, housekeeping, documented incident logs) even in home offices.

• Use written contracts with clear hold‑harmless/indemnity and certificate requirements appropriate to your scope.

• Keep a clean claims record; report incidents promptly and implement corrective actions.

• Review limits/endorsements annually; buy what contracts and risk truly require.

What Summit needs to quote precisely

Providing the following enables fast, accurate market comparison:

• A short description of operations, where work is performed, and typical client interactions.

• Estimated annual revenue, largest job size/contract values, and any subcontractor use.

• Current/past insurance details and five‑year claims history (if applicable).

• Required limits and any contract‑mandated endorsements (additional insured, waiver of subrogation, primary & non‑contributory, etc.).

Summit shops multiple insurers as an independent brokerage, curates terms for fit and value, and assigns a dedicated account manager. Learn more in Business Insurance and our transparency policy, How We Get Paid.

Next step

If your profile matches the “minimal premises exposure” scenarios above, budgeting $350–$550/year for a $2M CGL policy is a reasonable starting point. For a tailored quote and coverage advice, contact Summit via Commercial General Liability or Contact Us.