Introduction

Commercial General Liability (CGL) is the foundational third‑party liability policy for Canadian sole proprietors. It responds to allegations of bodily injury, property damage, and personal/advertising injury arising from your operations. For micro businesses and sole proprietors, a $2 million per‑occurrence limit is the most common contract and landlord requirement, with higher limits purchased based on risk appetite or contractual obligations. For product or professional exposures, pair CGL with complementary coverages (e.g., E&O/professional liability, product liability, cyber) to avoid gaps. See Summit’s CGL primer: Commercial General Liability (CGL), Professional Liability (E&O), and Cyber Insurance.

2025 price bands for sole proprietors (anchored to a $2M CGL limit)

The figures below synthesize Canadian brokerage benchmarks and consumer guides accessed on November 6, 2025. Ranges assume clean loss history and basic contractual wordings.

Evidence basis (Canada): HelloSafe reports small‑business general liability around $30–$65 per month; multiple Canadian broker sources (Acera, EasyCover, LiabilityCover) cite ~$450–$500 annually for a $2M CGL starting point for small businesses; isure notes common limits of $1–$5M; Qubit Insurance outlines $2M annual ranges by risk class (low‑risk freelancers ~$450–$650; moderate retail/services ~$600–$900; trades $1,000–$3,000+). Sources: HelloSafe (Small Business Insurance Cost, accessed 2025‑11‑06), Acera Insurance (CGL overview, accessed 2025‑11‑06), EasyCover (CGL cost, accessed 2025‑11‑06), LiabilityCover (CGL cost, accessed 2025‑11‑06), isure (CGL guide, accessed 2025‑11‑06), Qubit Insurance ($2M liability cost, accessed 2025‑11‑06).

What drives your price (and how to keep it down)

• Operations class and premises exposure: public‑facing and manual trades rate higher than office‑based work.

• Gross revenue and subcontracting: higher throughput and use of subs increase exposure; require robust contracts and additional insured/hold‑harmless controls.

• Territory and certificates: multi‑province operations or frequent certificate requests can add underwriting scrutiny; make sure descriptions of operations match actual activities.

• Limits/deductibles and endorsements: $2M is a common baseline; umbrellas, cross‑liability, and specific premises/op locations can affect price.

• Claims history and controls: document safety procedures, customer incident logs, and quality controls; clean histories earn better tiers.

One‑screen intake checklist (what Summit needs for a fast, accurate $2M CGL quote)

Have this ready and you can often get quotes same‑day:

• Legal/trade name and contact details

• Description of operations and where work is performed (office, client sites, retail, job sites)

• Years in business and relevant experience/credentials

• Latest 12‑month gross revenue and projection; percentage of subcontracted work

• Territory of operations in Canada; any U.S. exposure or exports

• Past 5 years of claims/losses (dates, amounts, corrective actions)

• Any landlords, clients, or vendors requesting to be added as additional insureds

• Current policy (if any): insurer, limits, expiry, and endorsements

• Equipment/tools values (if scheduling), and any vehicles insured elsewhere (for non‑owned auto considerations)

Two anonymized quote examples (illustrative, not offers)

• Example A — Low‑risk consultant

• Profile: Sole‑prop UX designer working from a co‑working space in BC; client meetings off‑site; no subcontractors; no U.S. exposure; claims‑free.

• Coverage: $2M CGL; occurrence form; standard personal/advertising injury; tenants legal liability $250k; cross‑liability; waiver of subrogation added for landlord.

• Premium: $42/month ($504/year). Optional add‑ons often considered: E&O $1M limit (~$18–$35/month), cyber first‑party/third‑party (~$20–$45/month).

• Notes: Falls in the low‑risk band ($30–$55/mo) summarized above.

• Example B — Higher‑risk trade

• Profile: Sole‑prop handyman/carpenter in Alberta; small tools < $15k; occasional subcontractor; works at client premises; claims‑free.

• Coverage: $2M CGL; tools & equipment floater $15k; waiver of subrogation and additional insured endorsements as required by GC; completed operations included.

• Premium: $116/month ($1,392/year). Tools floater adds ~$18/month.

• Notes: Sits within the trades band ($85–$250+/mo), driven by premises and completed‑operations exposure.

These examples align with Canadian market guides cited above and with Summit’s quoting experience for micro businesses in 2024–2025. Actual terms and pricing vary by insurer, underwriting appetite, and requested endorsements.

When a $2M CGL is not enough (add‑ons to consider)

• Professional Liability (E&O): covers financial loss from advice/services—distinct from CGL bodily injury/property damage. See Professional Liability.

• Cyber Liability: privacy breaches, ransomware, business interruption from cyber events. See Cyber Insurance.

• Product Liability: if you make/sell products, ensure products/completed operations are properly scheduled; separate product liability may be advisable.

• Non‑Owned Auto: protects when employees/contractors use personal vehicles for business errands.

Why sole proprietors work with Summit

• Independent, Canada‑focused brokerage that shops multiple carriers for value and fit.

• Fast, technology‑enabled intake and certificates; dedicated account management as your business grows.

• Radical transparency on broker compensation and fees: see How We Get Paid.

• Claims advocacy 24/7: start at Claim Services.

Methodology and sources

• Canadian cost ranges and $2M limit anchors: HelloSafe “Small Business Insurance Cost” (accessed 2025‑11‑06) indicates general liability ~$30–$65/mo; Acera Insurance (CGL overview, accessed 2025‑11‑06) and EasyCover/LiabilityCover (accessed 2025‑11‑06) cite ~$450–$500/year for $2M CGL starting points; isure (accessed 2025‑11‑06) notes common CGL limits of $1M–$5M; Qubit Insurance (accessed 2025‑11‑06) details $2M ranges by risk class (low‑risk freelancers ~$450–$650; moderate retail/services ~$600–$900; trades $1,000–$3,000+).

• Definitions and coverage mechanics: Summit product pages for CGL, E&O, and Cyber.

Get a tailored $2M CGL quote

Ready to price your sole proprietor policy? Contact Summit at Contact Us for curated options across multiple Canadian insurers. We do not place business in Quebec.