General liability exposure exists in almost every business, even ones that seem low risk.
A customer visiting your premises can slip and fall. A product you sell can cause injury. Advertising for your business can trigger a claim of libel, slander, or copyright infringement. None of these scenarios require negligence on your part to result in a costly lawsuit, and legal costs alone can be significant regardless of how a claim resolves.
An InsureLine broker can put together a general liability policy that fits your business and your budget, so you are covered when the unexpected happens.
The right amount for your business depends on a few factors:
The nature of your operations matters considerably. A business that regularly works on client premises, handles products, or has high foot traffic carries more exposure than one that operates primarily online or in a controlled environment.
Your contracts and client requirements may specify a minimum. If you work with larger corporations, municipalities, or government clients, minimum liability limits of $2 million or more are common requirements.
Your industry affects how large a realistic claim could be. A contractor who could cause significant property damage on a job site needs higher limits than a consultant working primarily from a home office.
The cost difference between $1 million and $2 million in coverage is often modest, and most brokers recommend carrying more rather than less. A basic CGL policy for a small to medium-sized business in Canada is very affordable. Call an InsureLine broker today to get covered!
No matter how big or small your business is, general liability insurance is a must.
It protects you from unexpected costs if accidents, injuries, or property damage involve a third party.
If someone is hurt at your location or by your services, they could claim compensation for medical bills, emotional distress, or lost income.
Even if the claim isn’t valid, defending your business in court can be expensive.
That’s where general liability insurance steps in—covering legal fees, medical costs, and settlements.
It helps you avoid major financial setbacks… and keeps your business moving forward.
Not sure if you’ve got the right coverage?
Talk to your InsureLine advisor today.
We’ll help you find the right policy—so you can focus on what you do best: running your business.
We're 100% Canadian. We’re local. And we've got you covered.
CGL does not cover claims arising from errors, omissions, or negligence in the professional services or advice your business provides. That exposure requires a separate professional liability or errors and omissions policy.
Data breaches, ransomware, and other digital incidents are not covered under a standard CGL policy. Cyber liability requires its own standalone coverage.
Injuries to your own employees are covered under workers' compensation, not general liability. CGL responds to third-party claims, not internal ones.
Accidents involving your business vehicles are covered under a commercial auto policy, not CGL.
Deliberate harm caused by you or your employees is excluded from every general liability policy.
In practice, however, operating without it is rarely realistic.
Most commercial landlords require proof of CGL before allowing a tenant to take possession of a space. Many clients and general contractors require it before awarding a contract or allowing work to begin on their property. Lenders and government contracts frequently require it as a condition of doing business. Some regulated industries have specific minimum liability requirements built into their licensing requirements.
Even outside those formal requirements, the financial exposure of going without CGL is significant enough that most insurance professionals consider it the most fundamental piece of any commercial insurance program — the starting point, not an optional add-on.
A CGL policy is built around five core coverage areas, each addressing a different type of third-party claim:
Bodily injury: If a customer, visitor, or member of the public is injured as a result of your business operations, a slip and fall on your premises, an accident at a job site, an injury caused by your employees — your CGL policy covers medical expenses, legal defence costs, and any resulting damages. Trip and fall incidents are Canada's leading cause of injury hospitalization, making this the most commonly triggered component of a general liability policy. And the one you will want to make sure you are absolutely covered for.
Property damage: If your business operations cause damage to someone else's property such asa contractor who accidentally damages a client's flooring, or a delivery driver who backs into a fence, your CGL policy covers the cost of repairs or replacement and any resulting legal claims.
Product liability: If a product your business sells, manufactures, or distributes causes injury or property damage after it leaves your hands, product liability coverage responds. This applies to retailers, wholesalers, and manufacturers alike. Not just the original producer of a product.
Tenant's legal liability: If you lease a commercial space and accidentally cause damage to the building. Such as a fire, a water leak, or structural damage, this coverage protects you from the landlord's claim against you for the cost of repairs.
Personal and advertising injury: Covers claims of libel, slander, copyright infringement, false advertising, and similar reputational or intellectual property claims arising from your business's marketing and communications.
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