Business insurance rules to check in 2026: privacy, workers' comp, taxes and licensing

No single law sets business liability insurance requirements in Canada, so "the 2026 rules" are really a set of provincial and federal rules that sit around your policy. As of October 2026, the ones worth re-checking at renewal are: privacy breach obligations under PIPEDA and Quebec's Law 25 (fully in force since September 2024), workers' compensation registration and clearance in each province where you have workers, the tax on premiums in your province, the licence of whoever sells you the policy, contract and permit requirements that set your limits, and, for Ontario businesses with vehicles, the auto insurance changes applying at renewals from July 1, 2026. This guide lists what each one means for your insurance and where to confirm it.

This guide is part of the business liability insurance cost overview. It is general information, not legal advice; rules change, so confirm with the source named before you rely on a point.

1. Privacy breach rules: why your CGL is not enough

Federal (PIPEDA). Organizations subject to the Personal Information Protection and Electronic Documents Act must report breaches of security safeguards that create a real risk of significant harm to the Office of the Privacy Commissioner of Canada, notify affected individuals, and keep a record of every breach for 24 months. These obligations have applied since November 2018.

Quebec (Law 25). The Act to modernize legislative provisions as regards the protection of personal information came into force in stages from September 2022 to September 2024. Businesses must report confidentiality incidents that present a risk of serious injury to the Commission d'accès à l'information and to affected persons, keep an incident register, and designate a person responsible for personal information. The law also introduced significant administrative and penal penalties.

Alberta and British Columbia have their own private-sector privacy acts; Alberta's includes a breach notification duty to its privacy commissioner.

Federal reform. Bill C-27, which would have replaced part of PIPEDA, died when Parliament was prorogued in January 2025. If you read about a new federal privacy law, check the Office of the Privacy Commissioner for what is actually in force before changing your plans.

Insurance impact. A standard CGL policy usually excludes data breaches and electronic data. Breach response costs and privacy claims need a cyber or privacy liability policy. See cyber and privacy breach gaps.

2. Workers' compensation: the exclusion that moves cost elsewhere

Workers' compensation is compulsory for most employers in most industries, but coverage rules differ between boards:

Your CGL excludes injury to your own workers where workers' compensation applies. If you are not registered when you should be, you may face board assessments and penalties, and the injured worker's claim may not land on your liability insurer either. Contractors should also collect proof of their subcontractors' accounts; see contractor liability quotes.

3. Taxes on premiums

GST/HST still does not apply to insurance. Ontario's retail sales tax and Quebec's tax on insurance premiums continue to apply to many commercial policies, and some other provinces tax certain lines. Rates and the lines covered can change in a provincial budget, so check the tax line on your 2026 renewal against the premium tax guide.

4. Licensing and fair treatment

Provincial regulators expect insurers and intermediaries to treat customers fairly, including disclosing commissions and conflicts on request and handling complaints. In Ontario, FSRA has had a rule on unfair or deceptive acts or practices in insurance in force since 2021; in Quebec, the AMF supervises sound commercial practices and requires firms to have a complaint policy. Each renewal, confirm that:

• your broker or agent is still licensed, using the provincial register or council
• your insurer is licensed in every province where you operate
• any broker fee is disclosed in writing before you pay it

5. Ontario auto changes from July 1, 2026

If your Ontario business owns or leases vehicles, note that changes to Ontario's statutory accident benefits apply to auto policies issued or renewed from July 1, 2026, making some previously mandatory benefits optional. Commercial auto is a separate policy from CGL, but the change can affect what your employees who drive for work are covered for. Review the choices on your commercial auto renewal with your broker and check FSRA's consumer information for the current rules. Other provinces' auto systems are unchanged by this.

6. French language in Quebec contracts

Amendments to the Charter of the French Language adopted in 2022 require contracts of adhesion, a category that includes most insurance policies, to be provided in French first in Quebec, with another language only if the parties expressly choose it after seeing the French version. If your Quebec operations receive policies or certificates only in English, ask your broker how the insurer complies.

7. Contract, permit and lease requirements

These are not laws but they set your limits more than anything else. Re-check before every renewal:

• new leases or lease renewals, which often raise required limits
• municipal permits, special event permits and film or road-occupancy permits, which may require proof of CGL and naming the municipality
• public-sector tenders, which frequently set minimum CGL and sometimes professional liability limits
• client contracts signed during the year

The limits guide explains how to translate those requirements into a policy.

Your 2026 renewal check, in one table

Frequently asked questions

Did any law make CGL insurance compulsory in 2026?

Not that applies to businesses generally. Requirements still come from contracts, permits and professional regulators.

Does Law 25 apply to a small Quebec business?

Yes. It applies to businesses of every size that collect personal information in Quebec, although some obligations scale with the risk involved.

Is my CGL insurer responsible if my employee is hurt?

Usually not, where workers' compensation applies. Check that your board account is active and that every province where you have workers is covered.

Where can I see the current Ontario premium tax rate?

On the Ontario Ministry of Finance pages on retail sales tax on insurance premiums, accessible from ontario.ca.

Sources

• Office of the Privacy Commissioner of Canada — PIPEDA breach reporting and records
• Commission d'accès à l'information du Québec — Law 25 and confidentiality incidents
• WSIB Ontario — Ontario workers' compensation and clearance certificates
• CNESST — Quebec workplace health and safety and compensation
• WorkSafeBC — British Columbia workers' compensation
• Financial Services Regulatory Authority of Ontario — Ontario insurance conduct rules and auto insurance information
• Autorité des marchés financiers — Quebec insurance supervision
• Office québécois de la langue française — French language requirements in Quebec