How much does liability insurance cost for a small SME?

From $800 to $4,000 per year depending on your sector and revenue. An independent broker compares 9+ insurers to find the best price/coverage ratio.

Is the liability deductible high?

Standard: $500 to $2,500 per claim. Increasing to $5,000 reduces the premium by 15-25%. Assess based on your ability to absorb a minor claim.

My employee is injured — does liability cover?

If the accident is at work: it's the CNESST. If sued outside of CNESST (harassment, discrimination), it's employer liability — check if included in your policy.

RC BUSINESS

Civil Liability for Businesses in Quebec

Q: What is the difference between general liability and professional liability?

General liability (CGL) covers physical damage to third parties and their property. Professional liability (E&O) covers errors and omissions in your intellectual services. A consultant needs BOTH.

Q: Does my home insurance cover my home-based micro-business?

No, or very partially (often capped at $2,500). For any professional activity at home, add a business endorsement or purchase separate liability insurance.

Q: Can I have liability insurance without having property insurance?

Yes, liability insurance can be purchased alone. But the combination of liability + property (commercial multi-risk policy) is often more economical.

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What is commercial civil liability?

Commercial civil liability (RC) protects your SME against financial claims from third parties (customers, suppliers, passers-by, employees) following bodily injury or material damage caused by your activity. In Quebec, this coverage is essential for any business — without it, you pay for judgments and legal fees out of your own pocket.

Unlike property insurance (which covers YOUR property), civil liability covers the consequences of your actions on others.

The 4 essential types of liability insurance for an SME

General Liability (CGL)

Injury to a visitor on your premises, water damage to a customer, theft committed by an employee. Standard coverage $1 to $5 million.

Professional Liability (E&O)

Errors and omissions in your services. Essential for consultants, engineers, accountants, agencies. Coverage $1 to $5 million.

Product Liability

Damage caused by a defective product that you manufacture or sell. Usually included in CGL.

Employer Liability

If an employee is injured outside the CNESST or sued for harassment. Often an option to add.

Cyber Liability

Data breach, personal information leak. Bill 25 mandatory in QC since 2024.

Directors’ Liability (D&O)

Directors’ decisions sued by shareholders/employees. For incorporated.

2026 Quebec Business Liability Award

Here are the typical ranges observed in 2026 depending on the industry:

SME Sector	Turnover	Annual liability premium ($1 million)
Consultant / Agency (E&O included)	$100,000 – $500,800	– $2,500
Professional Office (Lawyers, Accountants)	$200,000 – $1M	$1,200 – $3,500
Retail	$500,000 – $2M	$900 – $2,800
Restaurant/Cafe	$300,000 – $1M	$1,500 – $4,000
Construction Contractor (RBQ)	$500,000 – $5M	$2,500 – $8,000
Manufacturer / Industrial	$1M – $10M	$3,500 – $15,000
Daycare / Clinic	$500,000 – $2M	$2,200 – $6,000

Factors that affect the price: sector of activity (risk), claims history, turnover, number of employees, coverage limit chosen, deductible.

Is civil liability mandatory in Quebec?

Not mandatory by general law, but imposed in several cases :

RBQ License

All construction contractors must prove a $1 to $5 million liability coverage to obtain their license.

Professional Order

Lawyers (Bar), engineers (OIQ), accountants (CPA), notaries — professional liability is mandatory.

Commercial lease

The majority of leases require liability coverage of $1-2 million + building insurance for the premises.

B2B Customer Agreements

Some contracts (government, large corporations) require proof of liability between $2-5 million.

Municipal Permits

Some activities (catering, events, transport) require civil liability for the licence.

Cyber (Bill 25)

Since 2024, any company managing personal data should have cyber liability.

How to choose the right amount of coverage

The amount of liability coverage depends on your exposure to the risk:

SME Profile	Recommended Limit	Why
Self-Employed / Freelancer	$	1M Limited Risk, Retail Clients
Small SME (1-10 employees)	$1 to $2 million Moderate	risk, most contracts accepted
Medium SME (10-50 employees)	$2 to $5 million Demanding	B2B contracts, increased risk
Large SME (50+) or high risk	$5 to $10 million+	Manufacturing, construction, medical

Tip: The premium difference between $1 million and $2 million is often small (10-15%), but doubles your coverage. Talk to a partner brokerage to assess your actual exposure.

What to do in the event of a civil liability claim?

1. Document immediately

Photos, testimonies, reports. Don’t admit responsibility — let the insurer investigate.

2. Notify your broker

Within 24-48 hours. The shorter the deadline, the better the complaint is handled.

3. Cooperate with the expert

The insurer mandates a claims specialist (AMF legal title). Provide access to documents.

4. Legal Fees Covered

Civil liability usually includes legal defense, even if you are cleared.

5. Compensation follow-up

4 to 12 weeks for simple cases, 6-24 months for complex disputes.

6. Increase the deductible

After a claim, negotiate a higher deductible to reduce the future premium.

Why trust Assur360?

✅ Independent networking platform, partner of AMF-certified firms
✅ More than 100,000 insurance quotes made in Quebec since 2001
✅ Brokers of partner firms affiliated with the Chamber of Insurance
✅ Free, no-obligation service — insurer pays broker

Frequently Asked Questions — Commercial General Liability

Is business liability mandatory for my SME in Quebec?

Not by general law, but often by your sector: RBQ contractors, professions, orders, commercial leases, B2B contracts. Even when not mandatory, strongly recommended — a single claim can cost $500,000+.

What is the difference between general liability and professional liability?

General liability insurance (CGL) covers physical damage to third parties and their property. Professional liability (E&O) covers errors and omissions in your intellectual services. A consultant needs BOTH.

How much does civil liability cost for a small SME?

From $800 to $4,000 per year depending on your sector and your turnover. A partner brokerage compares 9+ insurers to find the best price/coverage ratio.

Does my home insurance cover my home-based micro-business?

No, or very partially (often up to $2,500). For any professional activity from home, add a company endorsement or take out a separate civil liability insurance.

What happens if I don’t have a civil liability and I’m sued?

You are personally responsible for the judgment + legal fees (often $30,000 to $500,000+ for a simple case). This can lead to personal or business bankruptcy.

Can I have a civil liability insurance without having property insurance?

Yes, the RC can be purchased on its own. But the combination of liability + property (multi-risk company policy) is often more economical.

Is the RC deductible high?

Standard: $500 to $2,500 per claim. Increasing to $5,000 reduces the premium by 15-25%. Evaluate according to your ability to absorb a minor loss.

My employee is injured — does the liability cover?

If an accident at work: it’s the CNESST. If you are suing outside the CNESST (harassment, discrimination), it is the employer’s liability — check if included in your policy.

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Last updated: June 26, 2026