One of the most common areas of confusion for Ontario business owners is the difference between Commercial General Liability (CGL) insurance and Professional Liability Insurance, also called Errors & Omissions (E&O). While both protect against lawsuits, they cover very different risks.
CGL Insurance focuses on third-party bodily injury, property damage, and personal/advertising injury. For example:
- A customer is injured after slipping in your Mississauga retail store.
- A Brampton contractor accidentally damages a client’s property while renovating.
These situations involve physical harm or damage to tangible property.
Professional Liability Insurance (E&O), on the other hand, protects against financial losses caused by mistakes, negligence, or failure to provide services as promised. Examples include:
- An accountant in Ontario files incorrect taxes, leading to client penalties.
- An IT consultant provides faulty software advice, causing the client financial losses.
These claims don’t involve physical injury or property damage—they involve financial harm.
Why is the distinction important? Because many businesses need both policies. For instance, a contractor in Brampton may need CGL to cover physical jobsite accidents, but also Professional Liability to cover design or project management errors. Similarly, a consulting firm may need E&O for advice errors and CGL in case clients are injured visiting their office.
Working with an experienced Ontario insurance broker ensures there are no coverage gaps. Brokers in Mississauga or Brampton will help you combine CGL and Professional Liability policies, ensuring your business is fully protected from all angles.
