Commercial general liability insurance in Canada

Also referred to as CGL Insurance, this protects your business in the event that it causes third-party property damage or bodily injury. In other words, it covers you if your company is held responsible for causing harm to another person or entity. This coverage protects your business if it causes tangible damage.

This is a difficult question to answer! Policies range from $500 per year to hundreds of thousands of dollars and in some cases can cost millions per year. Here are some factors that are taken into consideration to determine your CGL Insurance cost:

• Your industry
• Your annual revenue
• Your claims history
• You experience in the field

There are two main reasons your company needs a CGL policy:

1. Your landlord may require it for your business to take possession of a unit.
2. To protect your business in the event it’s deemed liable for causing damage to a third party.

Bonus: A CGL policy provides a lawyer to defend you on the dime of the insurance company.

It depends on the complexity of your business. If you’re a manufacturer, the process may take a little bit longer because it’s important for the insurance broker to understand your risk exposure. If you’re looking for a basic CGL policy in order to move into a new building, it can take as little as 5 minutes.

Here’s the breakdown of your average business liability insurance policy:

• Products-completed operations – protection if a product you sell or service you provide causes third-party harm.
• Personal & advertising injury – Protection if you are accused of libelling or slandering another person or entity.
• Tenant’s legal liability – Coverage if you’re a tenant in a building and you cause damage to your particular unit that is owned by the landlord.

Depending on the industry you work in, insurance companies will take a rate per $1,000 and then multiply it by the business’ annual revenue. If you’re a company that is just starting out and you’re unsure of projected annual sales, an estimation will do just fine.

Property insurance is coverage for your physical assets. Casualty insurance is just another term for liability insurance.

Yes, it’s the same thing. “CGL” is the acronym.

It covers your business in the event it’s deemed liable for causing harm or damage to a third party.

All insurance companies provide this type of liability coverage to businesses in Canada. In fact, liability is included on all insurance policies, even for home and car.

Shop around every 3-4 years to find the best commercial general liability insurance company. A broker like KBD can help you with this process as we have access to multiple insurance markets that provide CGL coverage.

Make sure to educate your employees on risk management.

Attempt to pay for small claims out of pocket.

• Intact
• Lloyd’s
• Economical
• L’Unique
• CFC Underwriting
• And more

Speak to a broker like KBD! You can also get quotes with companies like Desjardins, La Capitale and others. However, these companies do not have insurance products built for more complex liability risks. If you’re a company with millions in annual revenue, you’ll need to work with a business insurance broker.