Commercial General Liability (CGL) Insurance
Protect your Canadian business against third-party bodily injury, property damage, and advertising liabilities.
What is Commercial General Liability (CGL) Insurance?
Commercial General Liability (CGL) is the foundational policy for virtually every business operating in Canada. It shields your company from the massive financial consequences of everyday accidents, such as a slip-and-trip on your business premises, or a tool dropped by an employee that damages a client's property. Without CGL, a single lawsuit could bankrupt an otherwise healthy business. Most landlords, general contractors, and corporate clients will require proof of CGL (typically a minimum of $2,000,000) before signing contracts or lease agreements.
What Typically Covers
- Third-party bodily injury claims (e.g., a customer slips on a wet floor in your retail shop).
- Property damage caused by your operations (e.g., a plumber accidentally floods a client's finished basement).
- Product liability for injuries or damage caused by goods you sell, manufacture, or distribute.
- Legal defense fees, court awards, and settlements, which are covered regardless of whether the lawsuit is groundless or successful.
Key Exclusions to Note
- Damage to your own business property (requires Commercial Property Insurance).
- Professional mistakes, bad advice, or design errors (requires E&O / Professional Liability).
- Injuries to your employees (governed by provincial worker boards like WSIB in Ontario).
- Company-owned road vehicles (requires Commercial Auto Insurance).
Active Claim Example
“While remodeling a commercial office space, a subcontractor accidentally pierces a major water main. Before the shutoff valve can be located, three floors of the building are severely flooded, ruining IT server rooms and expensive office furniture.”
Why QuoteMatch?
We don't generate automated computer estimates that don't hold up. We match your application with actual RIBO-licensed commercial brokers in Ontario who specialize in underwriting Commercial General Liability (CGL) policies. Brokers compete to win your account, providing the best combination of pricing and limits.
Official Resources
To learn more about standard business insurance policies and consumer definitions in Canada, you can read the official Insurance Bureau of Canada (IBC) Guide to Business Coverage.
Commercial General Liability (CGL) Insurance FAQs
- What is the standard limit for CGL in Canada?
- The standard baseline limit is typically $2,000,000. However, high-risk trades, roofers, and contractors working on multi-residential or public projects frequently opt for $5,000,000 or write an additional umbrella policy.
- Are subcontractors covered under my CGL policy?
- Generally, no. You should always require subcontractors to carry their own active CGL policies and name your business as an 'Additional Insured'. Your policy may provide contingent coverage, but relying on it is risky and drives up your premiums.
- Does CGL cover my tools if they get stolen?
- No. CGL only covers third-party damage. To protect your own tools and equipment, you need a Tool Floater or Inland Marine coverage added to your commercial package.
Get Competitive Commercial General Liability (CGL) Quotes
One application, and specialized RIBO-licensed brokers shop your coverage to secure the best rates in Ontario.