General Liability Insurance - Liability Insurance Ontario

What Commercial General Liability (CGL) covers

Core protections

Bodily Injury - e.g., a customer slips in your store.
Property Damage - you accidentally damage a client's property while working.
Personal & Advertising Injury - allegations of libel, slander, or advertising injury (subject to conditions).
Products‑Completed Operations - injury or damage arising from your product or finished work.
Medical Payments - small, no‑fault medical coverage for minor injuries on premises (limit varies).
Tenants Legal Liability - damage you cause to space you rent (coverage and limits vary).

Helpful extensions

Non‑Owned Auto Liability - when employees use their own vehicles on company business.
Employers' Liability (where applicable) - complements workers' comp regimes.
Voluntary Compensation - may extend benefits to certain workers (by form/region).
Incidental Host Liquor - limited events where alcohol is served (not full liquor liability).
Umbrella/Excess Liability - increases limits over CGL/auto/other scheduled policies.

Exact terms vary by insurer. We'll match wording to your risk and contractual needs.

Who needs CGL?

Retailers, restaurants, and hospitality

Contractors & trades; renovation/restoration

Offices & clinics (professional liability is separate)

Manufacturers, wholesalers & distributors

Tech & service companies; consultants (consider E&O too)

Landlords & property managers; events & venues

If customers visit you, you visit them, or your product/work reaches the public-you likely need CGL.

Limits & aggregates - how coverage is structured

Limit	What it addresses	Notes
Each Occurrence	Max per covered incident	Commonly $2M-$5M; higher via umbrella/excess
General Aggregate	All claims in the policy year (except products‑completed ops)	Consider per‑project or per‑location aggregate endorsements
Products‑Completed Operations Aggregate	All product/finished work claims in the year	Completed ops period may be specified in contracts
Personal & Advertising Injury	Offences like libel/slander (subject to exclusions)	Often has its own sub‑limit
Tenants Legal Liability	Damage to premises you rent	Limits vary; check lease requirements
Medical Payments	No‑fault medical for minor injuries	Small sub‑limit; not a substitute for liability

Defense cost treatment varies by policy (inside vs. in addition to limits). We'll explain how your wording handles it.

Contracts & endorsements - certificates that pass scrutiny

Additional Insured (AI) in favour of your client/landlord for liability arising from your operations

Primary & Non‑Contributory wording when required by contract

Waiver of Subrogation in favour of the principal/landlord

Per‑Project / Per‑Location Aggregate to avoid exhausting a single shared aggregate

Cross Liability/Severability of Interests endorsement

Contractual Liability - confirm the scope of hold‑harmless/indemnity you've agreed to

Send us the insurance section of your contract/lease. We'll align limits, wording, and certificate notes before you sign.

What CGL doesn't cover (common exclusions)

Your work/workmanship itself (faulty work) - resulting damage may be covered
Professional services - get Errors & Omissions (E&O)
Owned property - your building/contents are a property policy issue
Automobile liability - needs commercial auto
Pollution - limited exceptions; consider environmental liability

Product recall costs - separate recall policy or endorsement
Intentional acts and contractual obligations beyond policy scope
Cyber & data breach - needs a cyber policy
Employment practices - consider EPLI
Workers' compensation - governed separately; coordinate with local requirements

Claim scenarios (examples)

Slip‑and‑fall: A visitor trips over a loose mat at your entrance and is injured. CGL responds to BI claim subject to terms.

Damage to client's property: During an install, a technician breaks a marble countertop. Property damage claim under CGL.

Completed operations: Weeks after a job, a faulty connection you installed causes water damage to a neighbour's unit-resulting damage may be covered under products‑completed ops.

Advertising injury: A competitor alleges your ad disparaged their product. Defense provided subject to exclusions.

FAQs

Occurrence vs. claims‑made - what's the difference?

CGL is typically occurrence‑based: the policy in force when the incident happens is the one that responds, even if the claim is filed later. Some specialized liabilities (e.g., professional) are claims‑made and respond based on when the claim is made.

Are subcontractors covered under my CGL?

Your CGL addresses your legal liability, including vicarious liability for subs, but subs should carry their own liability insurance. Always collect certificates and, where required, be added as Additional Insured on their policies.

Does CGL cover damage to premises I rent?

Yes, under Tenants Legal Liability (limits/causes of loss vary). Check your lease; we'll align the limit and form.

How much limit should I carry?

Many businesses start at $2M and step up to $5M+ depending on contract requirements, foot traffic, product reach (USA export), and risk tolerance. Umbrella/Excess can provide higher limits cost‑effectively.

Will my certificate include Primary & Non‑Contributory and a Waiver?

Often yes-if your insurer approves and your policy is endorsed accordingly. Share the contract wording and we'll secure the proper endorsements.

General Liability Coverage (CGL) - Protection for Everyday Business Risks

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