What does commercial general liability (CGL) cover?
Commercial general liability covers third-party claims for bodily injury and property damage arising from your business operations, premises, or products — for example, a customer who slips on your floor, or damage your work causes to a client's property. It's the foundation of almost every commercial insurance program in Ontario and is routinely required by landlords, lenders, and client contracts. It does not cover your own property or your employees.
What are the main things CGL pays for?
Three core areas: premises liability (someone injured or their property damaged at your location), operations/completed-work liability (harm caused by your work, on-site or after it's done), and products liability (harm from a product you make or sell). It typically also covers legal defence costs, and can include personal and advertising injury (e.g. libel, slander).
What does CGL NOT cover?
CGL is third-party liability only. It does not cover your own building or contents (that's commercial property), your employees' injuries (that's WSIB in Ontario), professional mistakes/advice (that's professional liability/E&O), or damage to your own products/work. A complete program pairs CGL with the other coverages your business actually needs.
Who requires CGL in Ontario?
Landlords usually require it in commercial leases, lenders require it to finance a property or business, and most clients and general contractors require you to carry it (often naming them as additional insured) before you can work for them. Limits of $2 million or $5 million are common contract requirements.
FAQ
How much CGL do I need? Often $2M–$5M, driven by your contracts and risk — we'll match it to what your leases and clients require. What is an "additional insured"? A party (like a landlord or client) you add to your policy so they're protected for claims arising from your work. Is CGL the same as professional liability? No — CGL covers injury/property damage; professional liability (E&O) covers mistakes in your advice or service.