Commercial General Liability insurance covers three core risk categories for any Ontario business. For example, a customer slips on a wet floor in your business, sues for medical expenses and compensatory damages, and CGL pays the costs up to your policy limit.
Litigation costs if your business allegedly caused bodily injury to a third party.
Damage to a third party's property, including rented commercial spaces and equipment — covers attorney fees and settlement payments.
Libel, slander, false advertising and defamation.
Endorsements extend the scope of your Commercial General Liability policy to cover risks specific to your business and industry.
Covers legal expenses for lawsuits arising from bodily injury or property damage caused by your products — design flaws, manufacturing defects, marketing errors such as mislabelling. Essential for product supply-chain businesses.
Covers expenses if your business is targeted by cybercriminals and faces customer lawsuits, legal defence, settlements and ransom payments for stolen information. Applies to businesses that store credit card numbers or personal details electronically.
Covers expenses directly related to a product recall — product retrieval, rehabilitation, financial loss from the recall, reputation management and regulatory fines. Complements Product Liability, which covers legal costs while Recall covers operational recall costs.
Covers lawsuits related to breach of contract and other contractual issues.
Provides coverage in the event you cannot operate your business after a loss.
Provides coverage for legal costs for defending suits related to allegations of mistakes, negligence, missed deadlines, and more.
Adds to the limit of an underlying commercial general liability policy. The liability portion of the underlying policy is the first to respond in the event of a loss. A commercial umbrella policy responds to eligible losses after the primary or underlying liability insurance limit has been reached.
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What Is Commercial General Liability Insurance?
Commercial general liability (CGL) insurance is a type of business insurance policy that provides coverage for your business against claims for bodily injury and property damage to third parties arising from your premises, operations, products and completed operations. When considering business coverage such as commercial general liability insurance, Ontario business owners should note that CGL is a broad type of insurance policy that varies between types of businesses. It covers general liability risks associated with your business, meaning your commercial general liability insurance company would provide funds to cover legal defence fees, settlement costs, medical expenses and other related costs should you be required to defend yourself in court against claims that you or your business caused third-party injuries or property damage.
Who Needs Commercial General Liability Insurance?
If you're an owner of a business that's small or large, you are always at risk in some way or another. Without commercial general liability insurance, Ontario business owners have no coverage should a lawsuit claim be filed against them. This can have a hefty financial toll on your business. This type of policy can also protect you from legal fees so that your business and reputation remain safe and flourishing.
Does commercial general liability insurance cover my business for social media risks?
Commercial general liability insurance can provide some coverage for social media risks, depending on the situation. The advertising injury portion of a CGL insurance policy offers you financial support if you are sued for slander, libel, invasion of privacy and copyright or brand infringement. Social media risks often center around those types of issues, which means you'll likely be filing a claim on your commercial general liability insurance in Ontario if you are sued for slander, libel or more that occurred on social media.
What specific expenses does CGL insurance pay for?
If you are sued for a reason covered by your commercial general liability insurance in Ontario, what expenses can you expect to receive insurance compensation for? That does vary somewhat according to the endorsements you have added to your commercial general liability insurance policy. Still, in a general sense, the types of expenses covered by basic CGL insurance include:
Is commercial general liability insurance legally required in Ontario?
No, CGL is not mandated by the Ontario government. However, commercial auto insurance IS legally required. Practically, most commercial landlords, suppliers and buyers require a certificate of insurance before contracting with you — without CGL, you may not be able to close some deals or rent commercial space.
What is NOT covered by commercial general liability insurance?
Commercial general liability insurance can cover a wide range of perils, depending on how your policy is written and the types of endorsements added, but it's certainly not applicable to every claim. As the name suggests, CGL insurance is a variety of liability coverage. That means it applies mainly to claims related to having legal action brought against you in court, and the reason why you are being sued informs the type of liability insurance coverage you need to get financial support for legal proceedings. Conversely, anything that is not related to you being sued doesn't fall under commercial general liability insurance. If a fire or natural disaster damages your property, for example, you would need to file a claim on your commercial property insurance, not your CGL insurance. You're also not covered for illegal acts or wrongdoings committed by yourself or your employees.
Can I bundle commercial general liability insurance with other coverages?
Yes, CGL is commonly bundled with Commercial Property Insurance and Business Interruption Insurance. Bundling may offer cost savings and single-point-of-contact service advantages. A Morison broker can advise on the right combination for your business.
