Question 1

How much does CGL insurance cost per month in Ontario?

Accepted Answer

Most Ontario small businesses pay between $35 and $170 per month for CGL insurance, which works out to roughly $400–$2,000 per year. Home-based consultants are usually at the low end; restaurants and contractors are typically at the higher end because of greater public and third-party exposure.

Question 2

What is the average cost of $2 million CGL insurance in Ontario?

Accepted Answer

A $2 million CGL policy — the most commonly requested limit for leases and client contracts — typically costs $600 to $1,800 per year for a low-to-moderate risk small business. Higher-risk operations like construction or food service can pay $2,000–$4,000 for the same $2 million limit.

Question 3

Why does CGL insurance cost more for some businesses than others?

Accepted Answer

Price is driven by industry risk class, annual revenue, number of employees, whether you work on client premises, your claims history, and the coverage limit you choose. A retail store with light foot traffic pays far less than a roofing contractor working at height on other people's property.

Question 4

Is a higher CGL coverage limit worth the extra premium?

Accepted Answer

Usually yes. Moving from $1 million to $2 million in coverage often costs a few hundred dollars more per year, while a single serious injury claim can exceed $1 million in medical and legal costs. Most landlords and contracts also specifically require $2 million, so the lower limit may not even be an option.

Question 5

Can I lower my CGL insurance premium?

Accepted Answer

Yes — insurers offer lower rates for businesses with no prior claims, documented safety procedures, lower annual revenue, and by bundling CGL with property insurance in a Business Owner's Policy (BOP). Paying annually instead of monthly can also reduce administrative fees.

Question 6

Does CGL insurance cost more in Toronto than the rest of Ontario?

Accepted Answer

Location has a modest effect on price — dense urban areas like Toronto can carry slightly higher premiums due to higher claim frequency and litigation costs — but industry risk class and coverage limit have a far bigger impact on your quote than which Ontario city you're in.

Industry	Typical Annual Cost	Why
Home-based consultant	$400 – $600/year	Lowest-risk category; minimal public contact
Cleaning & janitorial	$500 – $900/year	Risk driven by time spent on client premises
Retail store / boutique	$600 – $1,200/year	Foot traffic and slip-and-fall exposure
General contractor / trades	$800 – $2,500/year	Varies widely by trade and job-site risk
Restaurant / café	$1,500 – $3,000/year	Product liability plus higher foot traffic
Construction (high-risk trades)	$2,000 – $5,000+/year	Roofing, excavation, demolition and similar

How Much Does CGL Insurance Cost in Ontario?

The Short Answer

CGL Insurance Cost by Industry

What Drives Your CGL Premium Up or Down

Coverage limit

Industry risk class

Annual revenue

Number of employees

Claims history

Location

CGL Insurance Cost — Frequently Asked Questions

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