Commercial General Liability Insurance

Commercial General Liability Insurance in BC, Alberta and Ontario

Commercial general liability insurance, also called CGL or public liability insurance, helps protect your business from third-party bodily injury, property damage, and personal or advertising injury claims. It may also cover legal defence costs for an insured claim.

In addition, BIIS helps sole proprietors, partnerships, and corporations arrange CGL coverage in British Columbia, Alberta, Toronto, the GTA, and across Ontario. We can review the insurance requirements in your lease, client contract, permit, or vendor agreement and help you choose suitable coverage.

CGL insurance at a glance

• Protection for covered third-party injury and property damage claims
• Legal defence for covered lawsuits, including claims that may be unfounded
• Coverage options for products, completed work, advertising injury, and rented premises
• Insurance certificates for landlords, clients, municipalities, and business partners
• Advice from business insurance brokers serving BC, Alberta, and Ontario

What is commercial general liability insurance?

CGL insurance is a core form of business insurance. It can respond when your premises, operations, products, services, or employees cause injury or property damage to someone outside your business. For example, a customer could slip in your store, or your work could accidentally damage a client’s property.

Consequently, a covered policy may pay defence expenses, settlements, or court awards, subject to the policy wording, limits, deductibles, and exclusions. The exact coverage varies by insurer and by business. Therefore, a broker should review how your company operates before recommending a policy.

What does commercial general liability insurance cover?

In general, most CGL policies include four main sections. Optional endorsements may broaden or restrict the protection.

1. Bodily injury and property damage liability

This section may respond if your business is legally responsible for injuring a third party or damaging property that belongs to someone else. Common examples include a slip-and-fall accident, damage at a client’s job site, or an injury caused by your operations.

2. Products and completed operations liability

A claim can happen after you sell a product or complete a job. CGL insurance often includes products and completed operations coverage. However, some policies restrict this protection or cover premises liability only. We can help you check that the wording matches your operations.

3. Personal and advertising injury liability

This coverage may protect against claims involving libel, slander, wrongful eviction, invasion of privacy, use of another party’s advertising idea, or certain copyright issues in an advertisement. Coverage depends on the facts and the policy wording.

4. Medical payments

A policy may pay reasonable medical expenses after an accidental third-party injury caused by your operations. This protection can apply regardless of fault, subject to the policy terms. Timely medical support may also help prevent a smaller incident from becoming a larger dispute.

Tenant’s legal liability

If you rent or lease a commercial space, you may be responsible for accidental damage to the landlord’s building. Tenant’s legal liability can defend a covered claim and pay eligible repair or replacement costs for premises that you rent or occupy.

Moreover, the right limit depends on the size, construction, and replacement cost of the leased space. Your landlord may also require a certificate of insurance and additional insured wording. We can review the lease requirements before coverage is placed.

Who needs CGL insurance?

As a result, any business that works with customers, visits job sites, sells products, rents premises, or interacts with the public may face liability claims. CGL insurance is often required by a landlord, client, general contractor, municipality, online marketplace, or vendor agreement.

We arrange coverage for many types of businesses, including:

• Contractors and trades
• Offices and retail stores
• Small businesses, consultants, and home-based operations
• Restaurants, food services, importers, exporters, and product sellers
• Property owners, event operators, and service providers

How CGL insurance works

First, you choose a coverage limit and deductible when you arrange the policy. Next, report any incident promptly to the insurer or broker. The insurer will assess whether the allegations fall within the policy. If the claim is covered, the insurer may appoint legal counsel and pay eligible defence costs or damages.

Occurrence versus claims-made coverage

Commercial general liability insurance commonly uses an occurrence basis. An insured injury or damage during the policy period triggers coverage, even if the claimant reports it later.

By contrast, a claims-made policy generally requires you to make and report the claim while the policy is active. Claims-made coverage is common for some professional risks. The reporting rules, retroactive date, and extended reporting options must be reviewed carefully.

How much does CGL insurance cost?

Similarly, there is no single price for every business. Insurers calculate the premium after reviewing the risk. Important factors include:

• Your industry and the work you perform
• Annual revenue, payroll, and number of employees
• Business location and territory of operations
• Products sold and subcontracted work
• Claims history and years of experience
• Coverage limits, deductibles, and optional endorsements

Therefore, a short conversation about your operations is the best way to get an accurate CGL quote. BIIS can also review your current policy before renewal and identify gaps that may not be obvious from the premium alone.

How much CGL coverage do I need?

Many Canadian contracts request a $2 million limit, while some projects require $5 million or more. The appropriate limit depends on your contract, operations, revenue, and potential severity of a claim. We can match the policy limit and certificate wording to the requirements you provide.

What does commercial general liability insurance not cover?

CGL insurance does not cover every business risk. Common exclusions or separate insurance needs may include:

• Intentional or expected injury
• Damage to your own property, product, or work
• Employee injuries and workers’ compensation obligations
• Owned automobiles, aircraft, or watercraft
• Professional advice, errors, or omissions
• Cyber incidents, privacy breaches, and electronic data loss
• Pollution, asbestos, fungi, abuse, terrorism, and war risks
• Contractual obligations that go beyond your liability at law

However, an endorsement or a separate policy can address some exclusions. Depending on your operations, you may also need professional liability insurance, cyber liability, commercial auto, property insurance, or umbrella liability insurance. For a general industry definition of CGL, see the Insurance Bureau of Canada glossary.

Why choose BIIS for commercial liability insurance?

• Business insurance experience: We focus on practical risk-management solutions for small and medium-sized businesses.
• Regional service: Our team serves businesses in British Columbia, Alberta, Toronto, the GTA, and across Ontario.
• Broker guidance: We review your operations and contractual requirements before recommending coverage.
• Certificate support: We help arrange proof of insurance for landlords, clients, and other organizations.
• Broader protection: We can discuss property, professional liability, cyber, commercial auto, and surety needs alongside CGL.

Commercial general liability insurance FAQs

Is CGL insurance required by law?

CGL insurance is not legally required for every business. However, a landlord, client, lender, general contractor, or government contract may require it. Even when it is optional, the coverage can protect your finances from a serious third-party claim.

Does CGL cover legal defence costs?

A CGL policy may pay defence costs for an insured claim, even when a claimant makes unfounded allegations. How those costs affect the policy limit depends on the wording. Your broker can explain the terms before you buy.

Does CGL cover professional mistakes?

Usually not. Claims arising from professional advice, errors, or omissions generally require professional liability or errors and omissions insurance. Many businesses need both CGL and professional liability coverage.

Does CGL cover damage to my own property?

Usually not. Instead, commercial property insurance protects your building, equipment, stock, and contents against covered losses. CGL focuses on injury or damage suffered by third parties.

Can I get a certificate of insurance?

Yes, after the insurer places eligible coverage. Send us the certificate requirements from your landlord, client, municipality, or project owner. We will help make sure the names, limits, and wording reflect the policy.

Can I combine CGL with other business insurance?

Yes. In fact, many businesses combine CGL with property, business interruption, equipment breakdown, crime, cyber, or professional liability coverage. The right package depends on your industry and operations.