In Ontario, Commercial General Liability Insurance is not legally mandatory for most businesses. However, in practice, it is often required in order to operate effectively.

For example, many landlords in Mississauga, Brampton, and across Ontario will not lease commercial space to tenants unless they show proof of CGL coverage. This ensures the landlord is protected if the tenant accidentally causes damage to the building.

Similarly, contractors often cannot win bids for projects unless they can provide a certificate of insurance demonstrating adequate liability coverage. Municipalities, government agencies, and private clients frequently require proof of at least $2 million CGL coverage before work begins.

Even if it’s not legally mandated, going without CGL insurance is extremely risky. Consider a scenario where a customer slips in your retail store or a subcontractor damages a client’s property. Without coverage, you could face tens of thousands—or even millions—in damages, legal fees, and settlements.

While Ontario law does not force most businesses to carry CGL, some industries have stricter requirements. For example, certain professional trades may need additional coverage as part of licensing or regulatory requirements.

Working with an Ontario insurance broker ensures you meet all industry-specific requirements while also protecting your business from unexpected claims. In today’s business climate, CGL insurance is not just protection—it’s a critical tool for credibility, compliance, and peace of mind.