Commercial General Liability Insurance (CGL) in Ontario is designed to protect businesses against lawsuits and claims that could otherwise cripple their financial stability. The coverage includes several key areas.

First, it provides protection against bodily injury claims. For instance, if a customer slips and falls on a wet floor at your store in Mississauga, CGL would cover their medical expenses, potential lost wages, and your legal defense costs if they decide to sue.

Second, it covers property damage caused to third parties. Imagine you’re a contractor working on a Brampton construction site and accidentally damage the property owner’s expensive flooring. Without CGL, you would be on the hook for the replacement costs. With CGL, your policy can step in and pay for the damages.

Third, CGL covers personal and advertising injury, which includes claims such as libel, slander, and copyright infringement in your marketing materials. For example, if a competitor claims your advertisement unfairly damages their reputation, your CGL policy may defend you.

Fourth, it includes tenant’s legal liability—critical if you lease office or commercial space in Ontario. If your business accidentally causes fire or water damage to the building, your CGL policy will protect you against lawsuits from the landlord.

It’s important to note that while CGL covers many risks, it does not include everything. Employee injuries are covered by WSIB (Workplace Safety and Insurance Board), and professional mistakes fall under E&O/Professional Liability insurance.

By working with an experienced Ontario insurance broker, you can ensure that your CGL coverage is comprehensive, fits your business risks, and complies with client or landlord requirements. For many businesses, CGL is not optional—it’s a necessity for both protection and credibility.