Understanding Your Commercial General Liability Insurance

Canada is home to many well-known businesses, but the vast majority of Canada’s businesses are small businesses and microenterprises. The liability risks faced by small businesses aren’t that much different than those of large businesses. Many times, it’s simply a matter of scale.

Commercial General Liability Insurance (CGL) is the backbone for a small business insurance strategy, with other coverages added as needed to address a particular business’s risks.

Injuries to others can occur in even the most carefully-managed of businesses, which makes general liability insurance a must-have for businesses of all sizes, and even for home-based businesses.

Here are some risks you’ll commonly find covered by a CGL policy:

  • Bodily Injury Liability: If a client or customer is injured on your property, bodily injury liability coverage can pay for medical expenses or other related expenses. A home insurance policy does not cover business-related liability, so home-based businesses should consider coverage as well.

  • Property Damage Liability: Accidental damage to the property of others is usually covered by a CGL policy.

  • Personal Injuries: While personal injury sounds similar to bodily injury, it actually refers to damage to one’s reputation. Libel and slander are typically covered as part of a CGL policy. In today’s online world, a few keystrokes can create risk.

  • Advertising Injuries: Unintentional misrepresentation of a service and some types of advertising that cause a financial loss to individuals or to other businesses can be covered by your CGL policy.

​Coverage types and exclusions can vary by insurer and coverage is subject to the coverage limits you’ve chosen as well as insurer guidelines, so be sure to discuss your specific needs with your broker to ensure your policy provides the protection your business requires.

Commercial general liability insurance is just one type of protection your business may need. Many businesses may also require commercial property insurance, commercial auto insurance, or equipment breakdown coverage. As an entrepreneur, you know every business is different. Just reach out to your broker to discuss the ways you can protect the business you’ve worked to build and how to save on your insurance costs.

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