Commercial General Liability Insurance in Ontario

CGL insurance is not legally required for all businesses in Ontario, but it is often necessary to secure contracts and leases. Many landlords, vendors, and clients require proof of liability insurance before doing business. Additionally, certain industries, such as construction and healthcare, have regulatory requirements that mandate CGL coverage to ensure compliance and protect against liability risks.

The amount of coverage you need depends on the nature and size of your business. Most small businesses in Ontario opt for coverage limits between $1 million and $5 million. However, businesses with higher liability exposure—such as construction firms, manufacturers, and retailers—may require higher limits.

No, CGL insurance does not cover injuries to your employees. Employee injuries are typically covered under workers’ compensation insurance.

While CGL insurance provides broad coverage, it does not cover everything. Common exclusions include professional errors and omissions (which require professional liability insurance), cyberattacks and data breaches (covered under cyber insurance), pollution-related claims, intentional acts of harm, and contract disputes.

If an incident occurs, notify your insurance provider as soon as possible. Provide detailed documentation, including photos, witness statements, and relevant contracts. Your insurer will assign a claims adjuster to assess the damage and determine liability. It is essential to cooperate fully and provide accurate information to expedite the claims process. In some cases, legal representation may be necessary if the claim is disputed.

Yes, bundling CGL insurance with other business insurance policies can provide comprehensive protection while reducing overall costs. Common bundles include pairing CGL insurance with commercial property insurance, professional liability insurance, or cyber liability insurance. Bundling policies with the same provider may also make the claims process more efficient and straightforward.

There are several ways to reduce your CGL insurance costs. Implementing strong risk management practices, such as workplace safety programs and staff training, can lower the likelihood of claims. Choosing a higher deductible can also reduce your premium costs. Additionally, maintaining a claims-free history and bundling policies with the same insurer can help you secure discounts. Working with an experienced insurance broker can also help you find the best rates for your business.