Commercial General Liability Insurance

On Point.

General Liability Insurance (CGL) is the most basic form of protection that a business owners needs.

CGL is the first type of coverage a business owner needs for one reason – it protects you against the actions of others. CGL coverage protects your business against third-party liability claims – and due to the increasingly disarming level of lawsuits – without this coverage, court costs alone could create severe damage to an established business’

Commercial liability lawsuits can result from claims of property damage, bodily injury, and even advertising liability.

Bodily injury could range anywhere from a fall to severe burns. Property damage could result from an incident where a service employee causes a fire in a client’s home. Finally, advertising litigation may result from misinformation or an error in an ad you produced – that causes reputational harm
to a their client or competitor.

Commercial General Liability Coverage typically provides protection against claims related to:

  • Product Liability

  • Product Damage

  • Bodily Injury

  • Reputational Liability

Which business are you?

Is it required by law to have Commercial General Liability Coverage?

For the most part, Commercial General Liability Insurance is not required by law, but in many provinces certain industries may be required to carry a CGL policy. Sometimes landlords and clients may request proof of insurance as well, regardless of your industry.

Can you give me a few examples
of CGL Coverage in action?

In the event your business should be faced with a claim for bodily injury, damage to property, or other medical costs, your Commercial General Liability Coverage may cover you for the resultant expenses.

Three examples where your Commercial General Liability Coverage steps into action include:

1

You operate a coffee shop, and you a customer slips and falls on a wet floor, causing sever back and head injuries – leading to the loss of their ability to work. Your insurance coverage would cover all legal fees, retraining costs and personal injury payouts or settlements.

2

You run a electrical service, and while an employee is working in a home – his work causes a fire. Your insurance coverage would cover the cost of repairs, potential personal injury and potential court costs.

3

You run an advertising campaign that is very similar to that of a competitor. The competitor sees your ad and accuses you of plagiarism. Your insurance coverage would protect you against the resultant copyright infringement, and lawsuit expenses.

How is the cost of Commercial General Liability Coverage determined?

The cost of a CGL policy is largely determined by your business category and other risk factors. Your cost for CGL coverage is calculated by assessing several factors – including:

  • The location of your business.

  • How many people you employ.

  • The amount of coverage you need.

  • Your industry.

What is the difference between CGL and Professional Liability coverage?

A general liability insurance policy can cover liability claims such as accidental injury, damage to property belonging to third-party, and advertising injuries.

Professional liability coverage may provide protection against claims that pertain to the quality of your professional expertise or advice. Professions that may benefit from professional liability insurance include lawyers, consultants, insurance brokers, and accountants.

What if my business needs additional types of liability coverage?

Business owners can extend their existing Commercial General Liability coverage with a Commercial Umbrella Insurance policy. This will extend existing maximum policy limits, allowing your insurance company to cover you for more expensive, or extensive lawsuits.

If your business is exposed to additional liability risks beyond what a general liability insurance policy can cover, you can acquire separate liability policies. You can bundle the following insurance policies with your existing CGL policy:

  • Cyber Liability Insurance

  • Liquor Liability Insurance

  • Liquor Liability Insurance

Business Insurance – 2 Minute Insights

Common Commercial Insurance Categories

Real Estate Developer

Retail Enterprise

Contractor

Manufacturing

Garage Repair Shop

Professional Services

Medical Services

Lawyers & Law Firms

Fleet & Commercial Auto

Wholesaler / Distributor

Landlord / Rented Dwellings

Food & Beverage