Ontario Commercial General Liability Insurance
CGL insurance for Ontario businesses
Protect your growing Ontario business from financial liability and the costs associated with defending potential lawsuits with commercial general liability insurance (also known as CGL insurance).
Our policies will also help protect you from allegations of negligence for bodily injury to others or property damage of others arising out of your operations, products or services. Our expert brokers will provide you with the sound advice to protect your business.
Often contracts with your landlord, clients, lenders or the government require evidence of commercial liability insurance. We can arrange specialized coverage needed for your Ontario business.
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Acera Insurance offers EasyCover where you can get a quote online, bind your policy and pay online in only a few short minutes. Get comprehensive coverage and affordable rates quickly and easily.
Here are some of the benefits of EasyCover:
- Get free online quotes 24/7
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- Option to bundle with other coverages
Understanding the basics of Ontario commercial general liability
What is commercial general liability insurance?
Commercial general liability insurance covers the cost of defending lawsuits that arise from a person outside your company being injured or having their property damaged by something your company or employees did or failed to do.
This type of insurance also pays damages and medical payment resulting from such lawsuits. Commercial general liability insurance can also protect your Ontario business if you are sued for slander or defamation of character.
Any time you meet a client or potential customer face-to-face or handle equipment that belongs to them, you have the potential for a liability lawsuit. Don’t risk the business you’ve built so carefully by not insuring against such lawsuits.
To learn more about protecting your Ontario business from liability claims, contact Acera Insurance today.
What does an Ontario CGL policy cover?
Commercial general liability insurance provides coverage for premises liability, when accidental injuries occur to third parties (i.e., vendors, customers, visitors) that injure themselves at you’re a business location; completed operations liability, when property damage or injuries occur on someone else’s property when an employee is delivering services or goods to a customer; product liability, when the goods a company produces or repairs cause damage or injury; and personal or advertising injury liability, when you’re a business is accused of libel, slander, or defamation.
Who needs commercial general liability in Ontario?
There is no legal obligation for businesses to carry commercial general liability insurance in Ontario.
Commercial general liability insurance in Ontario is designed to protect small business owners against the costs of lawsuits and other liability claims. Even without it being required, it is still very highly recommended. It may be the very thing that keeps your business afloat, in spite of a loss.
It’s not just for big companies. If you run a small business, then you should consider commercial general liability insurance to protect your company against potential lawsuits or other claims.
Every business has a responsibility to its clients and to the overall public. While injuries and accidents do happen, you will want CGL coverage to support you in conditions in which responsibility of care becomes owed after an injury.
A common claims scenario, which shows one of the benefits of CGL coverage, is a slip and fall accident. In the occasion that a slip and fall accident happens to your property, because of an improperly shoveled sidewalk or a buildup of ice at some point of the winter, you can be protected. While it may seem insignificant, slip-and-fall injury payouts can be awarded up to a maximum of over $400,000.
As you can see from the example above, commercial general liability insurance isn’t for a specific industry. All Ontario business owners in all sectors benefit from this type of commercial insurance. You may need to get CGL if you:
- You conduct business on behalf of your clients.
- You are frequently in personal contact with customers.
- Your business property is owned or leased.
We offer CGL insurance Ontario businesses can trust
We’ve used our extensive experience and knowledge to create support the following industries with their commercial general liability insurance and more specialized coverage:
- Acupuncturists
- Auditors
- Business Consultants
- Chemical Engineers
- Computer Programmers
- Construction Contractors
- Construction Safety Contractors
- Consultants
- Database Managers
- Design Engineers
- Dietitians
- Electrical Engineers
- Engineering Contractors
- Finance Professionals
- Financial Analysts
- Financial Controllers
- Forensic Experts
- Health Professionals
- HR Consultants
- IT / Computer Contractors
- IT Analysts
- IT Managers
- Legal Services
- Management Accountants
- Managers
- Marketing Consultants
- Mechanical Engineers
- New Media
- Payroll Administrator
- Photographers
- Project Managers
- Psychologists
- Public Administrators
- Software Consultants
- Speech Pathologists
- Yoga/Pilates/Zumba Instructors
- Social Services
Key Ontario CGL coverages for your business
Bodily injury Coverage
Your business could be sued if a customer suffers any bodily injury such as slipping or falling on your steps. Bodily injury liability assumes that the injury was caused by negligence. Customers, vendors, employees, and maintenance personnel can file bodily injury claims against you.
Your business may be required to pay compensation for medical bills, lost wages, pain, and suffering. CGL coverage allows you to simply file a claim with the insurer if you are facing a third-party claim. All legal costs would be covered.
Property Damage Coverage
It is possible that you could be legally held responsible for the damage done to property belonging to third parties. This could lead you to pay expensive legal fees.
This could also adversely affect your clientele’s reputation. CGL insurance protects your business from third-party damage to your property or your business.
Product Liability Insurance Coverage
In Ontario, product liability insurance helps protect your business if a product you sell or a service you provide causes injury or property damage to a customer. Whether it’s a faulty lawn mower that injures a client or accidental damage caused during landscaping work, this coverage helps cover legal costs, medical expenses, and compensation. Having product liability insurance ensures your business is prepared for the unexpected and can handle claims without risking financial strain.
Personal and Advertising Injury Liability Coverage
Insurance providers who provide commercial general liability typically include personal and advertising injury claims because it protects the business from claims of libel and slander, as well as privacy violations, intellectual propriety infringement, and damages related to advertising.
Tenant’s Legal Liability
If you’re leasing commercial property in Ontario, tenant insurance is a must to protect your business from the financial risk of property damage. Accidents, negligence, or unexpected events like fire or water damage can lead to significant repair costs — and you could be held liable. Many Ontario landlords require tenant insurance as part of the lease agreement, so having the right coverage ensures your business stays protected and compliant.
Expanding on CGL coverage inclusions, exclusions and limits
Commercial general liability insurance exclusions in Ontario
Now that you’ve seen a few examples of what commercial general liability insurance can cover, it is just as important to familiarize yourself with the policy exclusions. Commercial general liability insurance will not cover any of the following (but note, many of these can be covered by other forms of commercial insurance):
- Intentional damages
- Physical damage to business property
- Professional services (like advice or consulting)
- Cyberattacks and data breaches
- Commercial auto liability
- Intoxication-related accidents
- Breakdown of business equipment
- Loss of business revenue
For a fully comprehensive business insurance policy that includes not only commercial general liability insurance, but all the types of coverage your business needs to be insured, contact Acera Insurance. Our expert commercial insurance brokers will tailor a policy specific to your company needs.
How much commercial general liability insurance do I need in Ontario?
The amount of coverage you need to get for your business is determined only after you evaluate a few business factors.
You do not want to make the mistake of overpaying for the coverage your business does not need, nor do you want to risk being underinsured and financially exposed.
Here are some factors you should consider before buying commercial general liability insurance in Ontario:
- The frequency of lawsuits in your industry
- Cost of lawsuits in your industry
- Your annual revenue
- Your clientele base
- If you operate on worksites
- How often do clients, vendors, and the public visit your office or business
- The number of employees does your company have
Ontario commercial general liability insurance claim examples
Commercial general liability claims are some of the most common claims a business could face and are oftentimes the claims that take businesses the most by surprise.
The following claim examples could be covered by a commercial general liability insurance policy.
Premises Liability
Your store has a long winding set of stairs that lead up to the shop. The stairs are metal, so when it rains, they can get quite slippery. After it rained overnight, an employee forgot to put up a sign for wet surface, and a customer coming up to your store slips and fails. They end up filing a lawsuit against your business for the injuries they suffered due to the accident.
Bodily injury claims, like slips-and-falls, can cost anywhere between $10,000 to $50,000. The amount can vary depending on the exact case and it can increase depending on the degree of negligence on the part of your business as well as the extent of injuries that the third party sustained.
Product Liability
Your business manufactures car seats for young babies and toddlers. Unfortunately, there was a defect in the design of a particular car seat and a customer sues your business due to a failure of the seat to protect their child, resulting in serious injuries. They sue you for their child’s injuries sustained by the defective product.
Some businesses that deal in the selling of products may also need to purchase additional product liability insurance, beyond the amount that is offered in commercial general liability insurance. Product liability claims can be quite expensive, and you may need to consider the addition of product recall insurance to include coverage for recall costs.
Completed Operations Liability
You own a roofing company, and you send one of your employees to do a job at a client’s home. While the job begins without a hitch, your employee makes a mistake and a portion of the eavestroughs come loose and fall onto the customer’s car, damaging it. The customer holds your roofing company liable for the damages to their car.
Completed operations liability is included in your commercial general liability insurance and can cover instances like these. This insurance is helpful for any business that conducts work offsite or delivers goods to customers.
The cost of commercial general liability in Ontario
How much does commercial general liability insurance cost in Ontario?
The majority of commercial general liability insurance policies cost between $450 and $500 per annum for small or medium businesses in Canada requiring $2 million worth of coverage. Although, some policies cost over $1,000 a year.
How is commercial general liability insurance priced in Ontario?
Each company will be priced based on their risk. That risk can vary, based on these key factors:
- Where your business is located
- What it does/its industry
- The average cost of a lawsuit in its industry
- Your employees
- Your gross annual revenue
- Your business experience
- Your insurance history
- The products you sell or the service you provide
- Your coverage options and limits
Acera Insurance has expert commercial general liability insurance brokers who can get you the comprehensive insurance at the best price. Get in touch with us today or apply for a free commercial general liability insurance quote.
How to save money on commercial general liability insurance in Ontario
Find a commercial general liability insurance broker in Ontario
Researching insurance companies in Ontario to find the best deal can be overwhelming and you may not be equipped with all the information needed to know what coverage you need.
That is why hiring a commercial general liability insurance broker would not only mean having that information but also years of experience that would benefit you in getting the right coverage for the best price.
Review your coverage each year
Your business needs and goals change every year, and with it changes your need for insurance.
That is why when it is time for your annual policy renewal, you need to review your policy and make sure you are not overpaying for coverage you do not need.
Look for discount opportunities
Many business owners do not know that simply asking your insurer for their available discount opportunities can save them a lot of money.
Acera Insurance’s general liability risk management advice
The more claims you end up making, the more you are likely to end up paying for your commercial general liability insurance. Although some claims may be inevitable and incidental, you can control the cost of your insurance premiums and improve your operations overall by adopting specific risk management strategies. Mitigation activities and awareness surrounding risk management can mean that your business is safer, your workers are safer and your brand can retain its gleaming reputation.
Risk, if we were to look at it from the perspective of an insurance company, is the potential that a loss — or other unexpected adverse event — could cause damages or even interfere with a business’ ability to continue operations as usual. Risk can be insured, but constantly relying on insurance as a fallback is not always the best means of protecting your company.
Enter risk mitigation. Here are a few tips for general liability risk management:
- For businesses, having agreements in writing or contracts is key. These contracts should outline the responsibilities not just of the business, but the client/customer as well. They may waive the business’ liability if a client/customer is injured due to business operations.
- Train employees and only hire candidates after rigorous background checks. Your business is only as strong as its weakest link, and this ensures that your business can be staffed with knowledgeable, dedicated individuals.
- Implement protocol for looking after and maintaining equipment, vehicles and stations. Create a checklist of what needs to be done each day.
- Have employees create an incident report of every possible accident that occurs on business premises or because of business activities.
- Make sure each member of your team is aware of who they need to be reporting to, so there is always a seamless pipeline of communication.
- Work with an Acera Insurance commercial general liability insurance broker for more risk management tips based on the business you run.
How to avoid making a commercial general liability claim in Ontario?
- Avoiding slip and fall accidents – To make sure no one files a slip and fall claim in your business, make sure that people are aware of any hazards in the property. Use signs or cones that indicate anything that may cause an accident like a wet floor. You can also install nonslip rug pads to reduce the chances of falling.
- Avoiding third-party property damage claims – Taking the necessary safety measures while working on a client’s property will lower the chances of an accident occurring. At the same time, when a client is in your place of business, ensure they always have their personal items on them so that they do not get lost or stolen, which could potentially result in a claim being filed against your business. Provide lockers or storage areas to further reduce this risk.
- Avoiding personal and advertising injury claims – Having a professional marketing team is great for your business, not only because it markets your services, but it can help you avoid advertising claims. You should also offer proper training for your employees to properly converse with customers and handle tricky situations.
- Avoiding products-completed operations claims – Proper safe testing of your products is not only good for your clients and business reputation, but it can also protect you from claims related to product liability. Make sure you also have a space for clients to submit their opinion about your product and make suggestions on how it could be better. And, as always, identify and analyze risks specific to your business and its operations. You never know what industry-specific threats may be most prevalent to you and your situation.
Why trust Acera Insurance to find the best Ontario CGL policy for your business?
Requesting a free, no-obligation commercial general liability insurance quote is quick and easy! Simply complete the quote request form and one of our Acera Insurance brokers will contact you.
If your business deals with people — and that includes most companies — you need commercial general liability insurance. It doesn’t matter whether you have a small direct sales business or a large multi-city operation; you need to protect your business from liability issues that can arise from things like a customer tripping and getting injured while walking on your sidewalk, a visitor getting hit on the head by a falling vendor booth display, or you accidentally spill coffee on a client’s laptop, erasing all their data.
As careful as your company may be, it is impossible to prevent events like these from happening. That’s where commercial general liability insurance comes in to protect your business from bearing staggering litigation costs.
How we help find the best commercial general liability insurance coverage in Ontario for your business
At Acera Insurance, we offer two convenient ways for you to find the best CGL insurance policy for your needs.
1. Get a CGL quote and buy online in minutes
Get an instant quote and buy your coverage online with EasyCover. Through our quoter, you can build your policy, bundle your coverage and see the premium amount update instantly based on your own selections. If you are happy with the quote, you can simply bind online right away. It’s as easy as that.
2. Talk to an Acera Insurance advisor
Have questions about your coverage? Our Ontario commercial insurance advisors are your partners in business. At Acera, we devote personal attention and provide exceptional customer service to our business clients. We’re more than your insurance broker: we’re your business partner, today and in the future.
FAQs: CGL Insurance in Ontario
A negligent act is anything that shows a lack of care in your place of business. Common examples of negligent acts include not clearing snow properly, and not paying attention to tripping or slipping hazards.
The three sections of commercial general liability are as follows: premises and operations exposure, products and completed operations exposure, and indirect/contingent exposure.
Ontario commercial general liability insurance covers all expenses when a covered claim is filed against your company. The insurance company would then take care of all legal fees such as defense costs and settlements.
The most important thing to do when choosing Ontario general liability insurance is to shop around and see what each insurer offers.
Compare each policy’s limits and make sure the insurer you choose has excellent customer service so that you do not face any trouble in communication moving forward.
Thankfully, Acera Insurance has fast and efficient ways to do this. You can connect with one of our expert commercial brokers to review solutions from multiple providers. Alternatively, check out our quick, online EasyCover quoting tool to get your free CGL insurance quote and compare options.
Fully comprehensive business insurance does not just stop at CGL. For your business to have protection against the kind of risks that would pose a threat to its livelihood, consider the addition of the following policies:
- Business interruption insurance: If your company is forced to temporarily cease operations due to a fire, flood, or other natural disasters, business interruption insurance may cover your income loss.
- Auto insurance: Commercial vehicle insurance for company vehicles
- Professional liability insurance: Professionals, or those who offer a professional service/advice, should also consider professional liability insurance, also known as errors or omissions insurance. This covers them for their work mistakes.
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