When a liability claim arises, knowing how the process works is essential. Here’s a step-by-step overview of how claims typically proceed under a CGL policy in Ontario:
- Incident Occurs – Something happens that may trigger liability. For example, a customer trips in your Brampton retail store.
- Notification – You must promptly notify your insurance broker or insurer about the incident. Delays in reporting can complicate claims.
- Investigation – The insurer assigns an adjuster to investigate the circumstances, gather statements, and review evidence.
- Defense & Legal Representation – One of the biggest advantages of CGL is that your insurer provides a legal defense if you’re sued. This includes hiring lawyers and covering defense costs—even if the lawsuit is groundless.
- Settlement or Judgment – If you’re found liable, your insurer pays damages up to your policy limits. This can include medical expenses, property repair costs, and compensation for pain and suffering.
- Policy Limitations – If damages exceed your policy limit, you may be responsible for the remainder, which is why choosing the right limit is so important.
For contractors and small businesses in Mississauga or Brampton, the claims process can feel overwhelming. Working with a local broker ensures you have an advocate who helps you file paperwork, communicate with adjusters, and protect your business during the process.
