General liability insurance cost in Canada depends mostly on what your business does, how big it is and the limit you choose. For a $2 million limit, Instasure's estimate tool puts a small consulting firm at about $386 a year and a small restaurant at about $1,924. Below you'll find a dated table by limit and business type, the factors that move the price, and ways to pay less without cutting the cover you need.
How much does general liability insurance cost in Canada?
For a $2 million limit, Instasure's estimate tool puts general liability insurance cost at $386 a year for an example consulting firm and $1,924 a year for an example restaurant. Both are CGL-only estimates for Ontario profiles with $150,000 of revenue and one employee, as of October 2026.
That's about $32 a month for the consultant and $160 a month for the restaurant. A skilled trade with the same revenue and staff comes in at $1,562 a year.
Commercial general liability (CGL) is the core liability policy for most businesses. The Insurance Bureau of Canada (IBC) glossary describes it as broad coverage for bodily injury or property damage to others that arises from your business operations. IBC's guide to buying business insurance adds that liability coverage typically pays the legal costs of defending a lawsuit, as well as damages you're found liable for.
CGL insurance cost by limit and business type (October 2026)
The table shows the "CGL only" option from Instasure's estimate tool. Each row is an example profile in Ontario, with no other coverage added. Figures are per year.
| Business type (example profile) | Size | $1 million limit | $2 million limit | $5 million limit |
|---|---|---|---|---|
| Consultant, IT or professional services | $150,000 revenue, 1 employee | $328 | $386 | $529 |
| Health and wellness practitioner | $150,000 revenue, 1 employee | $361 | $420 | $571 |
| E-commerce or online business | $150,000 revenue, 1 employee | $412 | $479 | $647 |
| Retail store, studio or clinic | $150,000 revenue, 1 employee | $714 | $840 | $1,134 |
| Skilled trade or contractor | $150,000 revenue, 1 employee | $1,327 | $1,562 | $2,108 |
| Restaurant or food service | $150,000 revenue, 1 employee | $1,630 | $1,924 | $2,596 |
| Consultant, IT or professional services | $1,000,000 revenue, 5 employees | $706 | $832 | $1,126 |
| Health and wellness practitioner | $1,000,000 revenue, 5 employees | $764 | $899 | $1,210 |
| E-commerce or online business | $1,000,000 revenue, 5 employees | $874 | $1,025 | $1,378 |
| Retail store, studio or clinic | $1,000,000 revenue, 5 employees | $1,520 | $1,789 | $2,419 |
| Skilled trade or contractor | $1,000,000 revenue, 5 employees | $2,831 | $3,326 | $4,494 |
| Restaurant or food service | $1,000,000 revenue, 5 employees | $3,478 | $4,091 | $5,527 |
Instasure estimates for example profiles in Ontario, as of October 2026. Rates as of October 2026. These are modelled figures, not quotes and not averages of policies sold. Yearly figures are 12 times the monthly estimate.
Cost by limit: $1 million vs $2 million vs $5 million
Your limit is the most an insurer will pay. In the model, dropping from $2 million to $1 million lowers the estimate by about 15%. Moving up to $5 million adds about 35%. So the $2 million liability insurance cost for the example consultant is $58 a year more than the $1 million cost.
Many businesses choose $2 million because contracts ask for it. The federal government's standard clause for commercial general liability asks contractors for a limit usual for that kind of contract. The floor is $2,000,000 per accident or occurrence and in the annual aggregate. Contracting officers are told to get risk management advice if $2 million doesn't look adequate.
Construction work can ask for more. One RCMP construction tender posted on CanadaBuys set a $5,000,000 each-occurrence limit. If a contract asks for a high limit, ask whether an umbrella insurance or excess policy on top of your CGL can meet it.
Cost by business type and revenue
The type of work moves the price more than anything else. At a $2 million limit and the smaller size, a restaurant's estimate is about five times a consultant's. A skilled trade's is about four times.
That's the short answer to how much is liability insurance for a small business: it depends on the risk your work creates for other people. A consultant rarely has customers on site. A restaurant has a kitchen, a dining room and customers every day. A contractor works in other people's homes and buildings, and finished work can fail after the job ends. If you're in the trades, see our page on contractor insurance. Food businesses can start with restaurant insurance.
Size matters too. In the model, a business with $1,000,000 of revenue and five employees gets a little more than double the estimate of a $150,000, one-employee business of the same type.
For property, cyber and full package pricing by industry, see our guide to small business insurance cost.
What insurers look at when pricing CGL
Insurers price business liability by estimating how likely a claim is and how large it could be. Here's what moves the estimate in Instasure's model, and what the model leaves out.
| Factor | What moves your price | In the Instasure model (Ontario, October 2026) |
|---|---|---|
| Type of work | Work at client sites, with tools, food or the public carries more risk. | A restaurant is about five times a consultant at $2 million. |
| Revenue and employees | More sales and staff mean more exposure. | $1,000,000 and 5 employees is a little more than double $150,000 and 1 employee. |
| Limit | A higher limit means the insurer can pay more per claim. | $1 million is about 15% less than $2 million; $5 million is about 35% more. |
| Claims history | Past claims suggest future claims. | Not modelled. Insurers will ask for your history. |
| Deductible | You agree to pay part of each claim. | Not modelled. Ask for two options. |
| Contracts and subcontractors | Contracts can add insureds, endorsements and higher limits. | Not modelled. |
| Location | Insurers may price where you operate. | Not modelled. The model doesn't vary CGL by province. |
Instasure estimates for the example profiles in the first table, as of October 2026.
Deductibles, aggregates and add-ons that change the price
Per-occurrence and aggregate limits
A CGL policy usually has two limits. The per-occurrence limit is the most it pays for one incident. The aggregate limit is the most it pays for all claims in the policy year. The federal clause above sets the same $2,000,000 for both. Read your contract's wording, because some ask for a higher aggregate.
Endorsements your contracts may require
Contracts often ask for more than a limit. The federal CGL clause lists endorsements such as:
- Additional insured: the client is added to your policy, but only for liability arising from your own negligence on the contract.
- Cross liability: each insured is treated as if it had its own policy.
- Blanket contractual liability: cover for liability you take on under a contract.
- Notice of cancellation: the insurer agrees to give the client 30 days' written notice before cancelling.
Ask whether each one is included or costs extra. Send the insurance clause to your licensed advisor before you get quotes.
Packages and add-ons
CGL alone doesn't cover everything. IBC notes that risks such as advice you give, business vehicles and lost income after a loss need separate cover. That means professional liability insurance, commercial auto insurance and business interruption. Businesses that hold customer data may also look at cyber insurance.
Here's how the estimate tool prices each step for one example: an Ontario consultant with $150,000 of revenue, one employee and a $2 million limit.
| Option in the estimate tool | What it adds | Monthly estimate |
|---|---|---|
| CGL only | Third-party injury and property damage, products and completed operations | $32 |
| Business package | CGL plus contents and equipment, business interruption, crime and money cover | $46 |
| Package plus E&O and cyber | Adds professional liability and cyber and privacy breach cover | $69 |
Instasure estimates for the example profile, as of October 2026.
How to lower CGL cost without cutting cover
These steps cut cost without leaving a gap you can't afford.
- Match the limit to your contracts. Check what your clients, lease and tenders require before you buy more or less.
- Describe your work precisely. Insurers rate the business you tell them about, so a wrong description can put a claim at risk.
- Ask for two deductibles. Compare the saving with what you could pay after a claim.
- Price a package and stand-alone policies. If you need property and business interruption anyway, compare both ways.
- Collect certificates from subcontractors. Make sure the people you hire carry their own liability cover.
- Update revenue and staff at renewal. Pricing follows size, so keep the numbers current, and compare insurers while you're at it.
Business insurance in Ontario and other provinces
Our example profiles are set in Ontario, where insurance is regulated by the Financial Services Regulatory Authority of Ontario (FSRA). For local estimates and rules, see business insurance Ontario or business insurance Toronto.
The model doesn't change CGL estimates by province, so the table is a reasonable guide elsewhere. Real insurers may price your location differently. Businesses in other provinces can start from the main business insurance page. Advisor service isn't available in Quebec yet, so figures there are for information only.
How we built these estimates
- Source. All prices come from Instasure's estimate engine, last reviewed in October 2026.
- Method. The model starts from a base figure for each type of business. It then adjusts for revenue, number of employees and the CGL limit.
- Option shown. The first table uses the tool's "CGL only" option. The tool's recommended business package adds contents, business interruption and crime cover, so it comes in higher.
- Limits of the model. It doesn't price claims history, deductibles, subcontractors or location.
- Updates. We plan to refresh this table every quarter. The Instasure Rate Index will add medians from real quote requests once the sample allows.
A licensed advisor confirms real prices from insurers before you buy.
Michael's take
As a planner, I treat CGL as a cost of doing business, on the same line as rent or software. The table shows it's a modest line for low-risk work and a real one for trades and restaurants. My rule of thumb is to start with the limit your contracts and lease require. Then ask a harder question: could one bad claim cost more than that? If it could, price the next limit up before you chase a smaller premium.
I'd also look at liability in the context of the whole household plan. For many self-employed people, the business budget and the family budget are the same budget. A claim your policy doesn't cover can come out of savings meant for the mortgage, the kids or retirement. That's why I'd rather see an accurate description of your work and a sensible limit than a policy bought on price alone. Buy what protects the plan, not what is sold hardest.
Next steps: get an estimate and compare insurers
- Get an instant estimate. Start a business insurance quote with your type of business, revenue, staff and limit. Or pick another product from the quote page.
- Check what you need. Our business coverage checker suggests baseline coverages and a limit for your type of business.
- Compare insurers with a licensed advisor. A licensed advisor in your province can confirm your classification, check your contract's insurance clause and compare real quotes.
