Selecting the right liability limit is one of the most important decisions when purchasing CGL insurance. In Ontario, most businesses carry a minimum of $2 million liability coverage. However, depending on your industry, contracts, and size, higher limits may be necessary.

Common options include:

• $1 million (rare today, often insufficient)
• $2 million (most common baseline for small to medium businesses)
• $5 million (common for contractors and larger businesses)
• $10 million+ (sometimes required for large corporations, government contracts, or high-risk industries)

Factors to consider when choosing limits:

1. Client Contracts – Many Ontario municipalities and large companies require contractors to carry at least $5 million in liability insurance to qualify for bids.
2. Industry Risk – High-risk trades such as roofing, electrical, and demolition should consider higher limits due to the potential for catastrophic claims.
3. Public Exposure – Businesses with heavy foot traffic, like retail stores or event venues, should carry higher limits due to increased injury risk.
4. Peace of Mind – Higher limits provide better protection against rare but devastating lawsuits.

A Mississauga insurance broker or Brampton insurance broker can review your operations and recommend appropriate limits. While higher limits mean slightly higher premiums, the added protection is invaluable. Remember, legal defense costs in Ontario can easily exceed hundreds of thousands, making robust coverage essential.