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Bodily injury to a third party
Damage to someone else’s property
Personal and advertising injury, such as libel, slander, or certain types of copyright infringement
CGL is not just for large companies. Guides for small business insurance in Canada consistently highlight general liability insurance as a key coverage for small and micro businesses that:
Deal with customers in person
Work at client locations
Sell products or provide services that could cause injury or damage
Contractors, trades, and mobile service businesses are often required by contracts and municipalities to carry CGL before they can set foot on a site.
Plumbers, electricians, HVAC companies, landscapers, cleaners, and many others rely on CGL to protect against:
Damage to client premises during work
Injuries to third parties on the job site
Completed operations claims that arise after the work is done
This covers claims that your business caused physical injury to a third party. For example, if a customer trips over an unsecured cable in your office and breaks an ankle, CGL can help pay medical expenses, legal fees, and potential settlements.
Property damage coverage responds when your business operations accidentally damage someone else’s property. A classic example is an employee who damages a client’s flooring, equipment, or building while performing work. CGL can step in to cover repair or replacement costs and associated legal expenses.
Personal and advertising injury coverage typically addresses non physical harm such as:
This is especially important for businesses that market online, publish content, or run advertising campaigns.
CGL is broad, but it does not cover everything. Common exclusions include:
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There is no single law that requires every business to carry CGL, but some forms of liability and auto coverage are required in certain situations, and many contracts require proof of CGL before you can lease space, sign a service agreement, or bid on work. In practice, CGL is considered essential coverage for most Ontario businesses that deal with the public or work on client property.
Many small businesses in Canada choose between 1 million and 2 million dollars in liability protection, and in Ontario a 2 million dollar limit is a common baseline. Higher risk industries and contracts with municipalities or large corporations often require 5 million dollars or more. The right limit for you depends on your industry, contracts, and risk tolerance.
CGL policies usually do not cover:
There may also be exclusions for pollution and certain high risk activities unless separate coverage is arranged. Always review your policy wording carefully or ask your broker to explain what is excluded.
For many small and medium sized businesses, a basic CGL policy with a 2 million dollar limit may start around 450 to 500 dollars per year, although premiums can be higher depending on your industry, revenue, claims history, and limit selection. High risk sectors can see premiums in the thousands per year. The only way to know your exact cost is to get a quote based on your specific operations.
Yes. Independent contractors and trades are often the ones most exposed to CGL claims, because they work on client property and around the public. Many general contractors and municipalities require proof of CGL before subcontractors can work on site. Having your own CGL policy protects you if something goes wrong and helps you qualify for more contracts.
You can often manage premiums by:
The goal is to find sensible savings without leaving your business underinsured.
Next steps:
List your key activities, customers, and locations.
Gather any contracts, leases, or tender documents that specify liability limits.
Talk to a CommercialInsurance.ca advisor about your Commercial General Liability Insurance needs.
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